Zillow Advice: Buying Foreclosures - Do you guys think you could answer the questions first, then the friendly banter?

Sunnyview, chaz, I agree ...

Wed, 15 Apr 2009 19:23:00 GMT

Sunnyview, chaz, I agree 100% that the two most important things that give you a snowballs chance is pre approval and or cash! You won't beat out the games that go on with the listing agents, but it will move you up the rung a step or two.

I agree with NV. Showing ...

Wed, 15 Apr 2009 19:13:00 GMT

I agree with NV. Showing a pre-qualification letter from the selling bank can make a difference because it effectively increases the amount that the bank stands to gain from the transaction. It costs nothing and might be worth considering. Like NV said you don't have to go through that bank for your loan, just prequalify with them.

In retrospect....I just won ...

Wed, 15 Apr 2009 19:02:00 GMT

In retrospect....

I just won a bid on a REO after 6 failures.

I am pre-approved at Wells Fargo and it just so happened that the property was a Wells Fargo REO. I think this made them stand up and salute.

If I was to do it again... I'd get preapproval at all the majors (especially CountryWide) and submit all of them ... since the REAs are tight-lipped about what bank holds what.

Nothing says I have to finance with the pre-approval accepted.

If you are talking about ...

Wed, 15 Apr 2009 18:56:00 GMT

If you are talking about missing out on REO's or short sales, I think the answer lies with the banks. Banks will choose offers in order of the ease of the transaction and what conditions are in the offer to buy. The more money offered, the better the terms, the more likely they will accept it. Cash buyers or buyer with larger downs and contracts with fewer conditions get picked first. Some investors are doing what you say and buying low from the banks with cash or close to it and then doing a little fix and flip or just selling it for some % of money above their expenses for the short time they carry the property. I know it's frustrating, but if you keep offering and keep your offers are clean as possible, you will have a shot at getting a place in escrow. It is a numbers game.