9 Steps to Buying a Bank Foreclosure (REO) Property

Mesquite NV Foreclosures, How to buy it right!

The majority of buyers in our market ask about Mesquite Nevada foreclosure property.They have heard that these properties can be purchased at well below market prices. Here are 9 steps to getting you a Foreclosure!

First, what you should know.

Knowing how to structure and then present your offer on bank owned properties can make the difference on a smooth transaction or leaving a less than satisfying experience on your mind. If your offers continue to get rejected, you will be thinking the banks just do not care. Nothing could be further from the truth,  they want to sell their properties as badly as you want to buy .  If you are using a Realtor for your purchase, you will have a much better chance of obtaining this type of property versus going on your own.

Here are 6  steps that will help you in acquiring bank owned property once you select the home, townhome or condo you like.

1. Find comparable sales within the last 6 months to make sure you are buying below market value.

2. Make a fair offer (low ball offers will not get a response most of the time). Banks will take less than tlist price, but not a lot.  5-10% less is a good rule.

3. Make sure your offer is accompanied with an earnest money deposit and a pre-approval letter from your lender, or proof of funds if paying cash.

4. Close of escrow to be 30-45 days from acceptance and use the bank recommended title/escrow office.

5. If the bank accepts your offer, they will send you an addendum with the closing date and terms and conditions. They will want it sold “as is” and ask you to waive some of your rights as a buyer.

This is why you need a realtor!!!

6. Schedule inspections and make sure the power and water are turned on for you.

I recommend an inspection because the bank will not disclose anything to you, even if they know there is a problem. You can back out of the transaction over an inspection.  Most of the time the banks will not make an adjustment to the price, due to a poor inspection.  If there are problems you need to know about it. Be aware some lenders require repairs to be done prior to the close of escrow and you taking title to the home.

7. You will get a preliminary title report within 10 days of opening escrow.  It is your responsibility to read this document and together with the title company make sure you are getting free and clear title.

8. Make sure your lender has everything in order so you  can close by the agreed upon date.  Most banks will impose penalties on you if you have to extend the closing!!

9. After everything records, you will need to change power, water, trash and sewer over to your name.

And that my friends is pretty much how it works!!!

It pays to do your research , but just remember to check each state for rules and regulations.

Even banks and lending companies have different ways of doing things, these are just some basic guidelines.

Written by LV “Buck Schaeffel of the MesquiteGroup Team of Bowler Realty. Bowler Realty is a Member or the Mesquite Real Estate Assocaition and is licensed in Nevada and Arizona.