Hey guys, I think I have finally found my first real estate investment. It is a foreclosure and has only been listed 3 days ago. I believe it is a foreclosure under Wells Fargo. Like Freddie Macs "First Look" and Fannie Mae's "Homepath" properties, it seems Wells Fargo is allowing only Owner-Occupied Buyers to submit offers for the first 15 days.
This would be my Wife and I's first real estate purchase and we plan to owner-occupy so we fall under the non-investor category. I know this is a hot market, because we put an offer in on a similar Quadplex 5 blocks away at $26,000 over asking price and were outbid by multiple full cash offers.
We saw the house today with the listing agent and plan to submit an offer at the full asking price, my question is as long as there are no higher non-investor bids will the bank just accept our offer, or would they just wait till day 16 for a higher investor offer? The listing agent said the phone has been ringing off the hook about the house, but it has only been investors so far. Any thoughts on this?
These days most banks are participating in neighborhood stabilization programs because they took bailout money, so you have a pretty good chance - even if an investor offers more than you.
On a multiple offer property, the agent should come back to you and ask for your highest and best offer.
They must exhaust all owner-occupant offers prior to reviewing investor offers, even after 15 days. Typically it is unlikely an investor will outbid an owner occupant. The previous property you seen was probably just under valued, as apposed to a sign of a 'hot market'. It happens all the time and everywhere with REOs, including here in CT.
thanks for the reply @Phil Z. the property has now been listed for 6 days. We are meeting with the listing agent tomorrow to submit an offer. My wife and I were at the property yesterday talking to neighbors, and even during that short time we saw a couple investors come out and go into the property. The neighbors have said there have been a lot of people driving by and looking at the property everyday. Anyway so far the listing agent has said we are the only ones who are non-investors so I think we are good. We plan to submit an offer for the full asking price, it seems like even at that price it will be able to meet our real estate goals, I'm just not sure about what contingencies to go with...
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