Q:The house I am currently renting was just foreclosed on by the bank. I?m considering purchasing the house. Would it be beneficial to make them an offer quickly, before they have an appraisal of the property done and would they even sell without an appraisal? I still have 10 months on my current lease and I don?t anticipate them wanting to be a landlord or holding onto the property for that long. I?m pre-approved for the amount I believe the house is worth in its current condition.
?Bummed Renter, Dallas, TX
A: Depending on the bank, they actually may let you stay through the end of your lease. I have been seeing more occupied foreclosures recently here in Orlando. They should ask you to sign a new lease with them however if they allow you to stay. As far as them taking an offer from you without them getting a price opinion or putting it on the market; don?t count on it. You can bet they will want an independent assessment of the value ? broker price opinion or appraisal. Banks list their REO properties on the market, to try to obtain a fair market price. They are not going to do you any favors just because you are being displaced by the foreclosure. Although, some are offering tenants cash for keys. Leave the property clean and turn over the keys without a fuss, and they may give you a few thousand dollars to help with you moving expenses.
David Welch is a Realtor? with RE/MAX 200 Realty in Winter Park, FL.
A: You have nothing to lose. Make an offer, present the pre-approval letter and any information that you have that supports your offering price.
Donna Schulze is a Realtor? with CENTURY 21 Seaside Village Properties in Osterville, MA.
A: Great question. In my book REO BOOM, i disuss the 6 steps in the entire REO cycle that banks adhere to. As far as ?appraisal? they all order them to know what price to list the REO (bank owned property) so it is highly unlikely they will sell it to you without knowing the value. Besides, how would you know what to offer? Lets say you do place an offer directly to the bank, its best to have a STRONG pre-approval letter from a credible lender. Find out who their direct listing agent is and contact them asap. They will be delighted to work with you because they have an opportunity to make a full 6% commission. Remember, placing an offer on an REO is nothing like placing an offer on a conventional home. I call the former ?multiple offer monster? and i go in detail to how the banks think and respsond to offers in my book. Just make sure you stay on top of them and know exactly what they want (i.e. the highest price in the shortest amount of time). Take care.
Aram Shah is a Realtor? with Florida Capital Realty in Doral, FL.
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