Offering a bank foreclosure closing costs?

Question

What would look most attractive to a bank when making an offer on a foreclosure property

Example

150k with closing costs paid by buyer

155k with a 3% contribution

160k seller paying all closing costs

Round figures etc....

Andy Mirza · Answer

@Hugh Jameson Make it a clean, simple to understand offer. Know what's the common practice for the area you're buying in. For example, in CA it's standard for buyer and seller to each pay their own escrow fee. Seller pays for title insurance. In GA, title insurance is optional and paid by the buyer. Offer what's normal for closing costs. The lender's real estate agent will educate them since they will probably not know.

Lenders tend to prefer the highest offer amount with the least contingencies or other moving parts and shortest closing time. All you really need is one contingency: physical inspection. 30 day close. 1-3% deposit.

Hugh Jameson · Answer

@Stephanie Simmons thanks for the advice

Stephanie Simmons · Answer

I've never offered to cover their closing costs - usually each back has their own portal and/or requirements on what they want you to pay.  I have had banks have me pay as part of their counter offer.

The last one I purchased the bank called for highest and best four times (over 4 months) until I continued to offer the same amount on the last three offers.  Then we closed in 4 days.

Think about the person you are offering to - they want to get the most amount for the bank - they also want REO off their books by the end of the quarter (when public banks have to publicize financial statements to investors).  So I would say simple - little or short contingency (especially if there wasn't an inspection contingency) and close at least 5 days before the end of March.