Buying Bank Owned Homes How To Avoid Being Rejected By Banks
If youre considering investing in bank owned homes
, be warned. Many real estate investors and homebuyers are itching to get their hands on such properties. Because of their affordable prices, these houses have become the ideal home or investment property for those who want to spend less and maximize their savings.
To ensure that your offer to buy a bank owned house wont be rejected by banks, here are some tips and pointers when purchasing such a property:
1.Buy the property as is. Offers that include demands for repairs on the property are likely to be sent to the trash bin since most banks and lenders sell bank owned homes and real estate owned properties (REOs) as is. Always keep in mind that many buyers are after REOs so you should never do something that would make the bank reject your offer.
2.Determine the number of offers on the property you want to buy. If there are other people looking into buying the same bank owned house that you want, you should beef up your initial bid to convince the bank that youre the better buyer. Banks will definitely appreciate receiving a higher purchase price for the REOs they own.
3.Show that youre a serious buyer. Like any other business entities, banks and lenders hate wasting time. If they feel that youre not that interested in buying bank owned homes, they are likely to reject your offer without batting an eyelash. Therefore, to ensure that youre going to get the bank owned house that you want, prove to the bank that you can seal the deal as soon as possible. Show them that you have all the financing needed to close the transaction.
4.Pay in cash. Another way to show that youre a serious buyer is by offering to pay for the REO in cash. Banks and lenders prefer cash and youll get points from them if you tell them that youll buy the property with ready money
5.Offer to split fees. Gain the upper hand over your competitors by volunteering to pay for half of the transfer and escrow fees. Lenders will gladly you their blessing to buy bank owned homes in their inventories if you offer to split the charges.
Just follow these simple tips and any offer you give to the bank will never be rejected again. For more hints on buying bank owned houses, log on to www.REIWired.com.