Some Advice on Negotiating a Foreclosure

As a Realtor in an market like many others across the country, I have helped buyers successfully negotiate and buy foreclosures from a bank. Having some insight into the process is always helpful to new investors and first time homebuyers, so that they can understand what is happening once their offer is submitted.  See my other blog post on this as well.

Knowing what to expect in negotiating is essential to success as a buyer.

Some of the key things I have learned over the years is that a mortgage company or bank selling a foreclosure will usually have an intermediary company or division of their company that oversees the negotiating process.  This organization is typically referred to as the ‘asset management’ company, or some similar name.

The asset management company will hire a local Realtor in the market area to list the property for sale.  Before the listing occurs, there is usually a research and evaluation period that the asset management company covers on each given property.  During this period, they are conducting an investigation with independent Realtors in the market area to determine a value.  Once the research is completed, they submit to the listing agent an listing agreement that includes a price to list it at.

When offers come in on the property, no matter if it is a full price offer, or lower offer, they are countered by the asset management company.  If it is a low offer, the counter will usually be in another price they will consider.  If it is a full price offer, they will counter with requesting a higher down payment or earnest deposit, or a shorter closing time, etc.  Fannie Mae properties for example will often include a deed restriction in their counter, stating that the deed will be recorded restricting you from selling the home to someone else within 3 months of the closing. 

There are a lot of aspects to this process, but if you are looking for a Realtor that has experience with this in the Battle Creek market area, give me a call at: 269-441-8182 or contact me through my website at:


  1. Dollie

    Thanks a bunch for trying to describe the terminlogy towards the starters!

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