It's time for us to address this! The media has been going on and on about foreclosures, all in the context of a "national market" (which does not exist by the way since all real estate is local!)
I started in on some research to see what is happening in other markets and to see what kind of information is being put out there by those who are actaully "in the trenches" helping people buy and or sell foreclosures on a regular basis.
Normally, we are not "cut and pasters" here, but I found an article today by a blogger in Connecticut, Linda Davis, Connecticut Foreclosures and Sainthood, which gave some great information.
In her article she lists 10 1/2 tips for buying foreclosures. To spotlight some of them...
1. "Complete all the bank requirements before submitting an offer. If the bank requires you to sign and initial 41 pages of documents, don't debate the subject unless you really don't want to buy the house. That is why they are called requirements."
2. "Your attorney will hate the required bank addendum and try to change it. (See #1)"
3. " Don't assume a bank foreclosure is a great deal. In my experience, great deals are hard to find and most foreclosures are listed at fair market value. If you are willing to do repairs, you may find a good (maybe even great) deal on a house that needs work. "
4. " Although the price on a bank foreclosure may drop eventually, banks usually don't accept a "low ball" offer. In some cases there is even a secret formula of how much lower than the list price an asset manager can accept. Once the price is dropped, the formula is reapplied. "
5. "Closing dates can't be mushy. Time is of the Essence. Bank sellers expect you to close on or before the closing date of the contract. They don't accept excuses and will often charge a per diem if you are not ready when they are."
6. "Keep your offer clean. Banks won't accept a contract littered with contingencies. AND if you have a house to sell, don't bother making an offer until your house is sold."
7. "Close quickly. I swear asset managers have little contests for most closings in a month. They always want to close THIS MONTH."
8. "Asset managers are dealing with hundreds of properties. Don't expect an answer from the bank within 24 hours even if your offer requires that. "
9. "Don't get mad at the listing agent if you don't get a response quickly. (See #8) You WILL need the patience of a Saint but it really isn't the listing agents fault. Calling her 5 times a day to ask, "Have you heard anything yet?", won't get you an answer any faster."
10. "While your offer is being considered, other offers may come in. This will make you really mad. (See #9) "
To see number 1/2 and the rest of her article you will need to link over to her post.
Over this next week or so, at the risk of making the blog FULL of stats for a while, I will be spending some time looking at the local foreclosure statistics as well as trying to find some information for those who may be facing foreclosure so that you don't get scammed.
