The Five Keys to Purchasing Bank Owned Properties
Right now is one of the best opportunities in decades to invest real estate. Interest rates are at some of the lowest we have seen in our history. There is a large selection of available inventory, housing prices are at 7 or 8 year lows and banks are very motivated to sell off their REO properties. Listed below are the 5 key points to purchasing bank owned properties.
1. Get pre-approved for a home loan with a direct lender to determine the maximum purchase amount the bank will lend you. This is essential prior to any offer being submitted.
2. Request a free foreclosure list from a real estate agent or REO Broker.
3. Drive by your desired listings and choose the properties you would like to preview and/or get additional information on.
4. Call a real estate agent or REO Broker to schedule an appointment to preview your preferred properties and receive specific details on how to make an offer. Have your agent or broker run comparables on the area to determine a fair market price.
5. Ask your agent or broker to write a through offer, complete with a pre-approval letter, credit scores (FICO), earnest money deposit and submit the offer to the REO listing agent and bank.
The banks main consideration when accepting an offer is their bottom line from the sale and how quickly the property closes escrow.
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