Bank Owned Opportunities
Buying a Destin, Panama City Beach or 30A bank owned home or condominium is one of the best ways to make a great deal on that Vacation Rental, second home “Get-Away” or as an investment to keep up and sell. If you are a CASH BUYER, the deal sweetens. The following factors can help:
- Cash or a Pre-Approved Mortgage helps.
- A letter showing “Proof of Funds”
- Education and Training on Buying REO similarities (Can be provided by specialized Realtor)
- An experienced specialized that deals with Bank Owned similarities
the time of action is different than buying a home the traditional way. for example, typically the seller will not make any repairs unless required for Fannie Mae financing. They will not provide home warranties. They do expect closing to take place on or before the closing date on the contract. If they can’t close by that time they may institute a $100-150 per diem that is the responsibility of the buyer to pay. Many people believe that edges will accept anything on an offer. My experience is that edges traditionally look at offers that are from owner occupants first and then investors. They may already put stipulations that offers from investors may not be made until after the character has been on the market for 15 days. Their goal is to not necessarily dump the similarities. their ultimate goal is to sell at a price that helps stabilize the area and not excursion prices farther down. Lenders that we have dealt with typically will not already entertain an offer less that 20% of of list price. The closer you are to list price, the more serious they consider the offer and the better your chances. Here are the requirements for an offer that will give you an idea of the Bank Owned buy offer:
1. A fully executed as-is buy and sale agreement.
2. A letter of approval from a dominant lender such as Bank of America, Wells Fargo or Homepath for financing or Proof funds for a cash offer
3. An Earnest money place of 2-3% of offer price for financing.
4. An Earnest money place of 10% for cash offers.
Remember, ask questions.