Seven Common Myths About Buying Foreclosures

I have sold a lot of foreclosed homes in recent years, and it never ceases to amaze me when I encounter common myths about the process. I sometimes wonder who are the people that invent these things? Some of them are seemingly unbelievable, and others are just misunderstandings.

There are common myths about buying foreclosures.

Some of the common myths are that the bank will accept and negotiate an unsupported verbal offer.  For example: I show a home to someone, and they like it and then the man walks over to me and puts his hands on his belt and says “Tell them I will offer $_____, and let me know what they say…”  I inform him that we must put it in writing to get consideration, and he responds with “Give it to them verbal and let me know”.  Sometimes I can talk sense into them, and sometimes it goes no where. 

I have covered in many other blog posts on this subject, but simply put: a seller of a foreclosure property will only review written offers, and those offer have to be supported with evidence.  The evidence is ‘proof of funds’ for cash offers, and ‘proof of financing’ for financed offers, and there must be evidence of an earnest deposit collected by the Realtor

There are other myths as well, such as being allowed to move in, and make repairs before closing.  Myths about the bank ‘letting you take over payments’ and ‘banks remodeling a discounted property’, etc.  I covered seven of the most common ones in a video, which I have included here. 

Foreclosures purchasing follows some very basic rules, and many of them are consistent from bank to bank, mortgage company to mortgage company.  If you do not follow their rules, you do no get the house.  It is as simple as that. 

If you are interested in finding out how to buy a foreclosure, and getting approved for a loan, give me a call at: 269-441-8182 or contact me through my website at: www.michaeldelaware.com.

0 Comments

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