Colorado Springs Vintage Homes Blog

What makes buying a foreclosure different?

 How to Buy a Foreclosure — Part I

If you are interested in buying a Foreclosure in Colorado Springs, it’s important that you realize that these are a “different type of sale”; and they go by different rules than “normal sellers”.

Most people who are looking to buy a REO in Colorado (foreclosed property) are looking for a deal.   It’s important to know that deals can be had, but they can’t be stolen.   Lenders are very good at pricing the properties correctly, and they typically have them priced correctly.

What makes buying a foreclosure different?

1. Asset Managers set the rules, and the rules very from lender to lender as well as the and the rules can also vary from Manager to Manager within the same lender.  (9 key things to know about buying a bank repo )
2. Asset Managers set the price by reviewing BPO (Broker’s Price Opinions) and Appraisals.  (Banks, how low will they go?)
3. Asset Managers typically work Monday through Friday, no weekends, no holidays, no evenings.
4. Asset Managers are looking for the highest net return and the quickest closing.
5. The properties are sold “as-is” with no repairs, no warranties and no guarantees.  (Homes sold “As Is” in Colorado Springs….what does it mean?)
6. Asset Manager almost always require a pre-qualification letter and an Earnest Money Check before submitting an offer.
7. Asset Managers can take days to give an answer on a contract.
8. Asset Managers  may also need to receive additional approval from their investors, mortgage services and the mortgage insurance companies on low offers.   Many times they don’t have the final say in accepting a contract.
9. REO Foreclosures almost always have an additional addendum’s.  It’s crucial for buyers and their Realtors to read the addendum thoroughly as the addendum’s supersede the terms, dates, and deadlines in the contract.
10. Remember, The Asset Manager is an employee, they are not real estate agents.  Their job description is to get the property sold.  They typically will be working on 300 to 400 files at a time.  For them it’s a business decision.

The most important thing to remember, they all want to recover the most they can in a sale in the quickest amount of time.

• Don’t let your dream house become a nightmare
• Pre-Qualification or Pre-Approval, which do you need to buy a home?
• Homes in Colorado Springs, 5 things to know about buying foreclosures
• 8 biggest mistakes made by Colorado Springs home buyers
• Buying HUD homes in Colorado Springs, Part I
• Buying HUD homes in Colorado Springs, Part II
• Colorado Springs HUD Homes – Part III in FAQ’s
• HUD homes available for $100.00 downpayment 
• Buying a short sale vs. a foreclosure, what’s the difference?
• Abandoned pets are foreclosure victims
• 7 reasons to buy a HUD home in Colorado Springs
• Rules are Rules for Title Seasoning 
• The Million Dollar Question

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Kathy (719-287-1049)   KTorline@msn.com

Tags: bank repo, Buying a bank repo, colorado springs foreclosures, FDIC foreclosure, HUD home in Colorado Springs

This entry was posted on Monday, January 18th, 2010 at 9:00 am and is filed under For Buyers, Foreclosures and Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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