How to outsmart competitors to buy REO foreclosure?
If you want to go for the overkill in the real estate investment
, you must learn to triumph over competitors particularly when it comes to grabbing REO foreclosures. Most of us know only too well that investing in REO foreclosures is an assured way of amassing wealth but never succeeded because you never knew where to begin.
To succeed in any business or investing, knowledge is crucial to outsmart the competitor and REO transactions are no different. You must master the art of identifying, participating and successfully clinching the REO deals at lowest possible prices. It is of paramount importance that you identify and hire a REO agent who is familiar with REO foreclosures. In fact, you should take this step before finding a home.
The four simple keys to beat others in REO transactions are:
Properly assessing the true value of REO by doing diligent pre-study prior to bidding
Thorough understanding of the auction process from start to finish
How to intelligently obtain the necessary finances and spend as little as possible on a fabulous home
How to identify auctions near your areas
Becoming familiar with the auction language and bidding rightly
There are several places online for you to search for REO foreclosures. Make it a point to check listings on Fannie Mae and Freddie Mac's Web sites. You can also ask your buyer agent to analyze Multiple Listing Services (MLS) for REO listings.
Of course, there may be only a limited number of real estate agents who specialize in listing REOs in your neighborhood. Make it a point to engage a REO agent who has the necessary contacts and required experience in dealing with REOs.
If the bank refuses to accept your offer and you receive a letter of rejection, do not just give up. Allow 30 days to pass and resubmit your original offer, with the original date crossed out and the new date inserted. Calmly wait for another 10 days for a response from the bank for your resubmission.
Make sure you have a loan pre-approval letter from the lending institution of your choice before submitting the REO offer, as if you fail to close the deal by the predetermined closing date, the bank may charge you a penalty for each passing day.
The price you offer for a REO is critically important. In most cases, the list price may not reflect the true value of the REO. If you are determined to overcome competing offers, you should offer the right price that will clinch the deal. Study the comparable sale prices for properties in the same neighborhood for the last three months to ascertain how much this REO foreclosure will be worth before quoting.
Find out the number of offers received for a REO foreclosure. If there are no offers on the REO home, you can safely offer less than list price and still get your offer accepted. However, if there are two or more offers, you will need to offer a price above the asking price.
The bank has the right to accept or reject your offer, or at times, they will make a counter-offer. As stated earlier, if they refuse your offer, you can go back through the process and give a new offer. Even if they provide a counter, you can either accept it or return it with another offer
How to outsmart competitors to buy REO foreclosure?
By: Rinswick
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