Presenting Solid Bids for Bank Foreclosed Houses

by Simon Lindsay on Foreclosure Help

Buying bank foreclosed houses follows a rather rigid process with a number of requirements that need to be met. The actual offer a buyer makes entails the submission of several documents where the lack of one could lead to the seller declining the offer. There are also some attitudes that sellers look for in an ideal buyer so making a good impression counts for a lot.

Picking the right buyers of their bank foreclosed houses is a serious matter for banks. This is their way of minimizing their bulk of loan defaults which can be a negative mark on their reputation. The bank then does a balancing act of quickly selling off their foreclosures and choosing good buyers. Buyers should think along these lines when they come up with their offer package.

Loan Preapproval

Needless to say, the first and important thing the bank will look into is the buyer's capacity to pay for the home. A loan preapproval certification presented by the buyer should cover this. Loan preapproval can be obtained from any mortgage provider and it states the amount of loan that the applicant is entitled to. This certification is not to be confused with the actual loan and it does not guarantee that the buyer will acquire the property. It is more of a means to reassure the home seller that the potential buyer has the capability of paying for the property. A preapproval certification tells banks that the candidate has a high credit score and an income stream.

Building the Basis for Your Bid

Your bid should be based on all the typical factors that go into the value of a property and these are many. What buyers should look for when calculating their offer is the amount that will enable the bank to break-even on the sale of the property. This is the usually the portion of the unpaid mortgage left by the previous home owner and the costs incurred by the bank in maintaining the property. The offer should likewise take into account the condition of the property and its approximate real value compared based on the location of the property and the comparable value of other homes like it in the same neighborhood.

Showing Good Faith and Building Ties with the Seller

It is important to keep the lines of communication with the bank throughout the buying process. This is a way to ensure that the bank has you in mind as a strong contender for the property out of all the other prospects they may be entertaining. Make sure you furnish them with all the documents they require. Also make yourself available when the bank wants to verify some elements of your offer or clarify some points. All these things will impact your chances of acquiring bank foreclosed houses.

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