All Forum Posts by: Phil Z.

If there are not other offers, you'll usually know within 1-5 days.  If more offers keep coming in, that could extend the decision time.  2 months is not common and probably the listing agent just messed up somewhere.

 Please don't.

Almost all foreclosures have the 'Special Warranty Deed'.  Talk to your attorney about that, and make sure you get title insurance.

Buying sight-unseen is a serious gamble.  Expect the worst, hope for the best.  You can usually get really really good deals on the occupied properties, I'm thinking at least 30%.

If they are 'arms length', a short sale is the best way.  IF you buy at the Courthouse Auction, you usually have very unfavorable terms and will require cash.  IF you wait for it to be bank owned then you compete with the entire market.

1. Don't expect a 'discount' because it's REO. They are expecting to sell it for Market Value.  They want 95-100% of list price.  Over time they will accept less, but more than likely they will want to reduce the price before taking a low offer (sometimes even lowering the price to meet the offer).

2. You do not need all cash.  You can use any financing type including Hard Money.

Agreed.  Despite their claims, you can often work out a deal for 'lender required' repairs or major finds.

You want to Lease a Short Sale that is going into foreclosure and will be bank owned soon?  That's not a good idea.

Bank Owned properties are for sale, not Lease.   If you want to Lease Option, then look for homes marked as such (REOs will never be).

Your offer should not be based on the list price .. it should be based on your numbers. What if they list at $40k but its only worth $20k? You'd feel like a winner if you paid $30k? The formula is: ARV - Repairs - Carrying Costs - Profit = Highest Offer. If you want to pay whatever it takes, then offer 95% of list price.

The Proof of Funds only needs to be equal to the offer amount.  I would just go in with $30k if that number works for you.  You don't need to factor in 'wiggle room' for 'negotiations'.  IF the bank counters, then you counter back at $30k.

In CT you would have to do a 'Personal Property Eviction' if the contents are valued over $500.  If this is the case you would change the back door lock so you have access, then lock it up and make sure there are no hazards. Then you post a notice on the front door for the [former] occupants to contact you ASAP.  If you can find them and get a waiver signed that would be the easiest way.