Is buying a foreclosure different?
Considering how the market is really getting hot in the Minneapolis-St. Paul area already in early February, I thought this might be the right time to revisit foreclosures. There are nowhere near as many foreclosures available today as there have been in previous years. But with the amount of competition in the limited amount of inventory, buyers are starting to consider purchasing a foreclosure as an alternative.
Buying a foreclosure is really no different than purchasing a home from a traditional seller. The biggest difference is the bank now owns the home instead of the previous homeowner. A foreclosure is traditionally held by a bank like Wells Fargo. A HUD home is owned by the government but it's still a foreclosure.
The biggest difference is, the number of hoops you will have to jump through to purchase a foreclosure. Things that are not necessarily important to a traditional seller like the amount of the earnest money can have a huge impact on the purchase of a foreclosure.
The other thing that's important to note is how you structure your offer to a foreclosure. It's very important that it is done a certain way so that your offer gets through the first round and not rejected outright. One of the biggest mistakes agents with no experience make is sending in an offer that's incomplete. It can be something as simple as not dating a page or putting the correct address on every page.
Purchasing a foreclosure can be a great experience but you have to have an experienced real estate agent that understands the process. The agent in the loan officer working together can be the key to your success in getting the foreclosure. Make sure that you are informed by asking lots of questions before you choose the people who will be representing you.
There is nothing that replaces the experience a qualified real estate agent will bring to the table. This may sound silly considering I'm a real estate agent but I've seen it time and time again. The asset managers of these foreclosures will take one look at an offer and if it does not contain all of the information in its proper order, many of them will just disregard the offer and move on to the next one. This is a very big question to ask so if you have interest and would like more information please feel free to give me a call.
Tom Sommers Coldwell Banker Burnet 952-994-7204
Click below to watch a video on buying a foreclosure
Or an audio version if that works better for you