Tips for Buying Foreclosures

Tips for buying foreclosures!

Here are some tips to consider:

1. Work with an agent who has access to foreclosure information.
Many home buyers assume that all agents have access to foreclosure listings. It's important to ask.

2. Bank-owned properties generally close faster than short sales.
While short sales can be bargains, they also can take a lot longer. Some banks will negotiate in a timely manner on short sales, but most will prioritize properties they have already repossessed.

3. Always offer less than the asking price.
Don't assume that banks are firm on their price. For example, asset managers responsible for liquidating bank-owned Marco Island, Florida condos are often willing to consider a lower offer.

4. Ask the bank to pay your closing costs.
The worst that can happen is that they say no. Sometimes buyers are surprised to find that banks can be quite accommodating when they want to.

5. Get pre-approved from the right bank.
When making an offer on a short sale, it's often strategically helpful to be pre-approved by the same bank. During negotiations, this may tip the scales in your favor.

RISMEDIA, January 25, 2011.