Help! Foreclosure?

Question:

I found a property and I found out that this is foreclosure, so I contact the realtor and he said that don't have a price set on it but I can get a preapproved offer from the bank(make them a offer), So I want to make them a cash offer I found out the valve of the house, but the house is trash the family that left didn't clean up it so much need to be haul off and I was going to include that we would take theresponsible to clean the house up if our offer is excepted, so what all should I include in my offer letter?

Answer:
IF they just listed the house, they wont be in a big hurry to get rid of it. In fact if you are interested, they will assume there will be lots of interest in the property, and they might be more resistant on lowering the price.

My advice is to always, always, always give a lowball offer, dont worry about offending them, or them not responding or anything. you can always raise the offer, but you cant come down.
Ballpark the costs you think it will take to fix it, than increase the costs by 50-100%, the sales price should at least reflect this cost.
Dont worry about walking away and losing this one, anywhere in the USA you live there will be plenty of foreclosures coming up in the next few years.
Cash offers, in my opinion, arent that attractive, because if you can arrange a loan, the seller is essentially getting cash anyway.

Foreclosures suck! The previous owner can come back within two years after you get the property and move back into the house. If you've got the money, wait about a year for the market to go soft and buy a house

Lady J,

First question: do you have a Realtor working for you? It sounds like you contacted the agent who has the house listed for sale rather than having your own agent do this for you. My first suggestion would be to find an agent to represent you in your purchase. He or her services should cost you nothing. The bank pays for that.

In answer to your question about what should be included in your offer letter, you should write a formal offer with a purchase contract. Your agent will help you with this. More than likely, since this is a foreclosure property, it's being sold "as-is". That's great that you're willing to clean up the house and haul away the trash! Since you're paying cash for the property, the bank should be a little more generous with what they will accept as an offer. You'll probably have to prove to them that you have the money, i.e., a copy of a bank statement showing the balance of funds where your cash is coming from.

I hope this helps and good luck with your purchase!

"The previous owner can come back within two years after you get the property and move back into the house."

This is such a broad statement and is most assuredly not true in many, many area of the country.

Lady J,

Tips:

1. Before you start investing in foreclosures you need to research what type of state laws affect you. For instance investing in tax deed foreclosures in Texas can have redemption periods of up to two years (they can get it back). Now if you are referring to bank foreclosures (based on mortgage liens), the sale is usually final. A good book you should buy from any bookstore on the difference between these foreclosure deeds and how to invest in them: Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days [ISBN 0978834682] by Don Sausa

2. If there's trash in the house and there are damages that you believe should be counted against the base price, you will need to create an offer letter that lists specifically what is wrong with the property and the estimated damages to fix those properties.

Help! Foreclosure?

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