Top 5 most common mistakes made when making an offer on a foreclosure

Have you ever wondered why banks will not talk to you?
Why your offers keep getting rejected?
Why you always seem to be the last one to find out about a great deal?
Why does it seem so hard to buy a foreclosure?

The answer to these questions as well as others could have something to do with the Realtor and Loan Officer you choose. I can't stress enough the importance of choosing the professionals that will be helping you before you start looking for a home. They should sit down with you and formulate a plan to help you get to were you ae going. You better believe some of your competition for that home you want has already done this. That puts them ahead of you right away.

Ask any REO listing agent that works exclusively listing forclosure homes and I bet they will tell you many times the reason a buyer does not get the home is related to these 5 common mistakes.

1) There is no time to waste when in a multiple offer situation. Highest price is not always the best offer. It goes back to being organized with all of the proper paper work ahead of time.

2) Incomplete and sloppy paper work. Many offers are submtted without meeting all of the bank requirements. It has to be submitted the first time complete. If it is missing information while the bank is waiting for it another offer that is complete could come along and that is the one the bank will work with. Banks are dealing with thousands of files and don't want to wait in some cases so they move on to the next.

3) Reading and understanding all of the supplements before you present your offer. You have to understand what you are signing before you sign it. It is never a bad idea to have a real estate attorney available to answer any of your legal questions.

4) You have to write a strong offer. What does that mean? Know the value of the home as well as the neighborhood. Be able to close quickly if necessessary and have any information that the bank requests ready and available for them. A lot of that will be answered by the pre-qualification letter your ender provides.

5) Earnest money. It is something of value given with the offer to show you are serious about buying the home. Put as much down as you can, it makes the ofer look stronger. You always have several outs to the contract so you can get it back if there is a problem as long as you stay within the wording of the agreement.

Foreclosures can be a great investment but to have a successful transaction my advice is learn all you can ahead of time.

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