Buying A Palm Springs Area Foreclosure

Foreclosed properties can be referred to as bank owned, REO (real estate owned) or simply as foreclosures. The great thing about a bank owned property is what you see is what you get. The bank has already foreclosed or taken back the property that was possibly a short sale up to that time, and listed its price and sale terms. The bank is poised, ready and able to accept a reasonable offer – and, here's the important part – usually in a timely basis.

New Trends In Foreclosure Inventory Management

When foreclosures first started appearing in the desert market in significant numbers, banks tended to be in a hurry to sell. Recently, banks have become smarter about controlling Palm Springs area foreclosure inventory and in accepting offers. Banks now seem to be placing foreclosed properties on the market slower; many prefer to sell one property before placing another on the market.

Another recent trend is for banks to accept offers for foreclosed homes or condos for a given period of time before acting on any of the offers. They may accept offers for several days before choosing one to accept or respond to with a counter offer.

Cash or Financing?

Foreclosure buyers with cash offers tend to receive a higher interest level from many banks. Banks want to be assured that an accepted offer stands a high chance of closing, which moves cash buyers to the front of the line if their offering price is equal to or close to a finance buyer’s offer.

To be able to submit an offer to the bank, cash buyers must submit proof of funds in the form of a recent bank statement. Finance buyers must submit a pre-approval letter from their lender before an offer can be submitted.

Once Your Offers Is Accepted

After acceptance by the bank and buyer, foreclosed properties enter escrow just as a non-distressed property does.  Buyers typically have a time period specified in the purchase agreement for making property inspections and competing their due diligence.

Sheri Dettman & Associates has succeeded in winning bank owned properties for a growing number of buyer clients.  “Many banks and their REO agents in the Palm Springs area know that we have a track record of getting bank-owned transactions completed,” said Sheri. “Our buyer clients know upfront and during the negotiation process with the bank what it takes to win a bank-owned property and complete the transaction in a timely basis. Preparation, experience and communication are key.”

If you would like more information on investing in a bank owned property, please don’t hesitate to contact Sheri.

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