Buying A Central Florida Foreclosure Requires Some Strategy

If you think about it, this makes sense. The reason property values fall when foreclosures hit the market is because the foreclosures are listed
below market value and usually sell for below market value.
That’s how the banks garner the most attention possible.
They want a bidding war, and it benefits them to have multiple offers
on the property. And trust me; there are almost always multiple offers
on foreclosures.

You have to have patience; you’re dealing with a bank that moves slow and is closed on the weekends. Expect to wait 5 business days after the offer is presented before
hearing something back from the bank. The offer will have to go through
a couple of levels of management before it’s accepted.

The price you offer is important, but so are all of the other terms. The banks want to know you aren’t going to walk away from the deal. They want to close quickly and get it done. A buyer walking away from
deals costs them time and money. They just want to get rid of the home
as quickly and cost effectively as possible.

Here’s an example of what I’m talking about. Let’s say a buyer offers $80,000 for a home and offers a $1,000 deposit. Then they ask for a 10 day inspection period and want to close in a
month. Then another buyer comes in with an offer of $78,500 with a deposit of $10,000. They only want 5 days for the inspection and they can close in two weeks.

The bank is probably going to choose the latter because they can see that the buyer is serious about trying to lock up the deal. It’s a matter of risk versus reward. This is just my experience talking here, but they would rather accept
the offer that has a much better chance of getting closed.