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These are too complex for most buyers to deal with.
For all but investors, foreclosures are far to complex and risky.
If you are smart, you will use a buyer agent to advise you on the market conditions and the specific property. The listing agent works for the seller.
Who is doing the negotiations with bank? I find many do not understand how to negotiatie a short sale nor do they price it right to get the short sale approved. The bank will do a BPO on the property and if this is a new listing then you are in the beginning process. Will your buyer wait. If not move on.
Robert Johnson How many liens and type of liens.
How many banks are involved. Are all of the banks ready for a sale.
If it is a short sale, chances are it wont be quick. Has the short sale been approved by the sellers bank? if so check to see if it is in writing from their bank. If it hasnt started yet, run. If it is in foreclosure, when is the sale date? then you will know if you have time to close. Say a foreclosure is scheduled for 21 days and you need 30 to close, you are wasting your time.
"Has a previous offer been accepted and failed?"
This reveals if the bank is fishing or selling.
Be aware, most banks, after accepting a purchase offer, and building up the hopes of the buyer, will place the house on Auction effectively kicking your buyer, and the contract, to the curb.
Know the history of the lender, Prepare your buyer for betrayal. Know the real status, revealed by previous activity (BPO, Appraisal) before thinking this house is actually for sale.
As if it is really for sale. I get many inquiries on pre-foreclosures which would fall int your category of "notice of default". In my mnd, those are not a good use of your time.
IS It being professionally negotiated or is the agent doing the work. There is also a difference beween being in foreclosure and a short sale - so which is it? The timing is very different between the two - how many letters have they gotten if they are in foreclosure - what is the real situation - what communications have they gotten from the bank?
Good morning Robert. It is important to understand where in the process the foreclosure is, is there someone in place that can negotiate a purchase.
Yes you need to find out where exactly in the foreclosure process this property is at. Have they tried working with the lender and are they willing to work with the owner?
I think one of the most important things is to manage your buyer's expectations. Timelines are unpredictable and they need to be aware of that.
Ask if there are liens on the property, such as tax liens.
If there's a homeowner's association, ask if the seller is delinquent on HOA dues. Back dues, plus late fees, attorney fees and collection fees add up very quickly. The buyer is expected to pay those fees, though they can sometimes be negotiated down.
Has the agent spoken with the negotiator and does the agent know the date of sale? Another question is with a good offer can the negotiator get the sale pushed out?