Many investors are attracted by the opportunities that a bank owned foreclosure can offer them and these include the possibility of saving thousands of dollars, getting an instant equity and a fast return on investment. Investing in bank owned foreclosures are also known in the market as one of the safest methods of foreclosure investing.
But an investor who wants to seize these opportunities must look beyond the superficial and the apparent. Not all properties that look pretty on catalogue are necessarily good for you as an investment. If you want to ensure that you will derive the maximum financial benefit from a property, then you must know how to close a good deal when it comes.
The Importance of A Preapproval
A preapproval should be secured even before you shop for properties and submit your offer to the bank. A bank usually gives weight to a person’s financial capability to handle the purchase. A preapproval will send the message to the bank’s REO department of your financial health and could actually give you an edge over other potential buyers similarly interested in the bank owned foreclosure.
The reason why a preapproval is important is because getting preapproved means that you have satisfied, to a certain extent, the minimum qualifications and requirements of a lender or bank and this is a positive indication for the bank that you are responsible financially. With a preapproval letter in hand, a bank would be most likely be inclined to give your offer a more serious consideration.
Put Forward A Good Offer
A good offer means one that is based on real and careful examination of the investment property. Make sure that you are prepared to make a good offer as well as comply with any deposit requirement that the bank could require of you. If you can make a reasonable offer, then the bank will definitely think highly of your credibility as a buyer and investor. Remember that competition is tough and one of the most difficult arenas in foreclosure investing is the part where you put forward your best offer.
Express It In Writing
Always put your offer for a bank owned foreclosure in writing and make sure that your documents and paperwork are complete. It would be best if you can accomplish your papers and attachments and submit them in advance so that you avoid any unnecessary delay.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.