3 Rules for Buying a Foreclosure by Leander McClain, Realtor Cherry Hill, NJ

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Real Estate Agent

kids playing w blocks3 Rules for Buying a Foreclosed Home by Leander McClain, Realtor

When it comes to buying a foreclosure,

RULE #1 - YOU MUST FOLLOW THE RULES!

RULE #2 - EVERY BANK HAS DIFFERENT RULES!

Rule #3 – YOU ARE NO EXCEPTION!

The rules are so simple and so obvious that even a four year old child can understand. Most of my listings are bank foreclosures. I can’t tell you the number of times I have heard the following lines.

…… My office doesn’t prepare offers that way.

…..We don’t have the forms the bank requires.

….In Gloucester County, that’s not the way that we do things.

….Have you seen this house? (duh….it’s my listing, of course I have seen it)

….Can’t you call the bank and explain to them why my client should be an exception to the rules?

…. We want to put in an offer, but we want to do it our way!

….It’s been two days, how come we don’t have a response to our offer?

…. If we don’t have a response by COB tomorrow, we are withdrawing our offer!

…This is our best and final offer……well maybe our first best and final.

The public has a misunderstanding that banks want to give away foreclosed homes. Nothing can be farther from the truth. Each bank has an inventory of thousands of homes. The asset managers are attempting to provide the greatest return on investment possible. The bank is in business to make money. In this case, they are trying to minimize losses. Are they going to sell homes for 50% of list price? Most times NO! Because the bank’s asset managers are each working with hundreds of deals, there are systems and process in place to make managing that task easier. It makes it easier to review offers when each offer is presented on exactly the same forms. My experience has shown that offers which are presently incorrectly are rejected. In some cases, the buyer won’t know that their offer has been rejected. It’s really quite simple.

  1. Learn the rules
  2. Play by the rules
  3. Have patience

It's just like kindergarten all over again. If you play nice and listen to the teacher, you will get a cookie at snack time.

Good Luck in the search for your new foreclosed home.

If you are looking for a foreclosed home in NJ, Atlantic & Pacific has an inventory of 90+ homes in Northern and Southern, NJ. Give me a call today! (856-438-0399) I will put you in touch with the agent that is covering the towns you are interested in.

 

Think ~ Then Act

Have A Great Day

Make This Your Best Year Ever

Your Friend In The Real Estate Business


Leander McClain, Camden & Burlington Township Realtor & Real Estate Consultant, Atlantic & Pacific Real Estate, 103 Carnegie Center, Princeton, NJ 08540 856-438-0399 (direct)

lee@njsouthrealestate.com, @leemack912, www.facebook.com/Leander.NJRealtor

Recent Posts

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Beautiful Burlington Township & Burlington City, New Jersey
POSITIVE ATTITUDE for the Weary Soul
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Rainmaker
287,337
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

I love this post! I actually opened it thinking I would "learn" something about making offers on foreclosures.  I got a great chuckle, and yes, I did learn something - more than I expected.  Clients and agents alike - you have to keep smiling! After all - we are all SPECIAL! right? oh yeah - that was the point of your post - we actually aren't! Keep trying to tell us! 

Sep 21, 2010 08:40 AM #1
Ambassador
686,724
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Leander I think Lise got it right when she said "we are all SPECIAL right?"  But just not the SPECIAL she was referring to.  This is a great post.  I have to got through the same thing.  What makes people think that their offer is so great, that the asset manager is going to escalate their offer right on top of the stack on their desk.

Sep 21, 2010 08:48 AM #2
Rainer
10,772
Nunzio Zappola
Prudential Douglas Elliman - Babylon, NY

I have encountered situations that are very similar. Buyers that think they can control every aspect of the offer, Including what I should be doing. Explain as you may they just dont hear it. Agents and brokers like to play by their own rules sometime just to have control over their clients and customers but in this situation it is the bank in control and that is just not acceptable to some. I cant explain to people that dont listen. Save my breath and Just SMILE listen to the chatter try to be responsive but in the end just SMILE it becomes contagious.

Thanks for the refreshing view and reminder that I am not alone.

Sep 21, 2010 08:52 AM #3
Rainmaker
175,396
Leander McClain
North East, MD
Cecil & Harford County Realtor

Lise & Charita - when it all comes down to it.....its a matter of dollars and "sense".  If you take a little time to read the rules, its pretty simple.  When you rely on your experience......that is when you are heading trouble.

Have another great day

Leander

Sep 21, 2010 08:54 AM #4
Rainmaker
175,396
Leander McClain
North East, MD
Cecil & Harford County Realtor

Nunzio - I smile and tell them...."either you want to play by the rules or not. We are not going to change the banks system on THIS deal.  So why are we wasting time debating the merits of the system.  It's not your system, it's not my system.  Get back to me and let me know what your client wants to do."  This usually gets us back on track

Have a great day

Leander 

Sep 21, 2010 09:54 AM #5
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Rainmaker
175,396

Leander McClain

Cecil & Harford County Realtor
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