The Most Common Mistakes on a Foreclosure Bid


Amidst the cold housing market nowadays because of the high inventory of foreclosures and the uncertain state of many markets, it is important to know how to beat competition or more specifically, know how to bid on a foreclosure if your goal is a property within your price range. The key is in knowing how to use a dire situation to your advantage and end up still victorious, so to speak. In this case, it is primarily important to know where the most attractive markets with the best prospects for properties on foreclosures.

Southwest Florida foreclosures are most available during the winter season. Unless people have to sell their properties during winter, the real estate market will have either bank owned properties or ones that are on short sale. This is a great opportunity for homebuyers to purchase their dream houses for a real bargain especially when represented by the right realtor when making the bid at auction. Choosing the right agent is important in this process because there have many cases where agents make mistakes during the transaction and lose the deal for their clients. At the onset, agents should be able to write a winning letter, one that can get the approval of the bank. Many times especially when the property has multi offers, the one that can spell the winning difference is the great letter to the bank. Here are some more common mistakes in bidding for bank owned properties.

1.Wrong dated checks. Deposit checks should be dated on the day of the offer if you don’t want to irk the banks. Most of the time, bidders use the same check from one offer to the other, making it apparent why their offers are not accepted at all.

2. Old and bad bank statements- In giving bank statements, make sure that they are the most recent. Even those later than a month are considered old when you are a bidder. Remember that the bank statement is official evidence that you have the financial capacity to buy the house. Aside from its being up to date, it should also state that you have enough funds to buy the house.

3. Incomplete or Missing Lender’s Letter – A lender’s letter states and confirms the bidder’s employment and funds statements, FICO score and the bidder’s ability to close in 30 days. The bidder should also manage expectations in terms of inspections and minor repairs because unlike traditional sellers, banks sell these properties as they are.
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