7 STEPS TO CLOSE!
1. GET ME A "PROOF OF FUNDS" OR PRE-APPROVAL LETTER. No bank will accept an offer without one of these. For immediate approval, call Will Dukes, Sr. Loan Officer at Summit Home Mortgage, Tel. 239-272-2241 or e-mail Will at Wdukes@summit-mortgage.com
2. FIND THE RIGHT PROPERTY. Consider my list of bank-owned properties, which is taken directly from the Multiple Listing Services in each area. Once you register on my site, you will be taken directly the MLS lists of all available bank-owned properties. If you are a serious buyer, you will be notified of additional properties that meet your criteria as they become available.
3. SUBMIT AN OFFER. All offers will be written on what is called an "AS-IS" contract. The bank (seller) makes no warranties about the property. The home will be conveyed to you as you see it. So, if there is no refrigerator, don't expect one when you close. You have the right to inspect the property within a short period but the bank will make no repairs or improvements for you. Typically, the bank is an out-of-state lender that knows little or nothing about the property and just wants it SOLD. In this market, it is common to have multiple offers on a property, sometimes within days after the home comes on the market. Be prepared to act quickly once you find the right property.
4. AWAIT SELLER RESPONSE. The bank will do one of 3 things.
a) ACCEPT your offer. In this case, the seller verbally accepts your offer and you can generally consider your deal pretty solid. However, the bank will not sign the contract that you submitted. Instead, the bank writes the exact terms they agree to on their own contract or addendum. They will have you sign this and submit back to them for their signature. Once you receive back the addendum with the bank's signature, you have a solid deal.
b) REJECT your offer. In this case, your offer was not strong enough. They may have already accepted another offer or just think your offer is too low. They may also submit a verbal counter-offer in this case.
c) REJECT AND ASK FOR YOUR "HIGHEST AND BEST" OFFER. In this instance, the bank is in receipt of multiple offers. Their position has improved and they will ask each potential buyer to resubmit their strongest offer. Typically offers improve here. Remember, the property is already steeply discounted. Be realistic when submitting offers.
5. HAVE AN INSPECTION. While the bank will not make any repairs or improvements, it is a good idea to have an inspection to know what potential problems, if any, come with the property. If the inspection reveals serious and very expensive problems, you may wish to cancel the contract and receive a refund of your deposit money.
6. POSITION FUNDS. If you are a cash buyer, have your funds ready to close. If you are getting a mortgage, make immediate application with the lender. Time is of the essence with these closings.
7. HIRE AN ATTORNEY. Buying a foreclosure property is not your typical real estate transaction. You should have professional legal representation, someone looking out for your interests, not the bank's. I am happy to recommend highly qualified, local, board certified real estate attorneys for you.
