Through our buyer rebate program, we are commonly asked to write offers on MLS listed foreclosures. I want to add a few comments to help buyers increase the chance of an accepted offer.
First- Understand your market. For example, in Las Vegas, MLS listed foreclosures are typically receiving 5-10 offers a piece. Thus, if you plan on writing an offer well below list price, understand it is doubtful you will receive any word from the lender at all. Most lenders choose to just not respond to offers they don’t like. There is nothing wrong with throwing out low ball offers, however, just keep in mind you won’t always get a reply.
Second- Do what the lender tells you to do. When the MLS listing says that you must be pre-qualified with XYZ Bank, trust me, they mean it. When you obtain financing, you can use whomever you wish. However, when you submit your offer, send the requested pre qual from the preferred lender.
Third- Date your EMD checks correctly. Don’t send a copy of a check for an offer you wrote 4 weeks ago on a different property. The person reviewing the file will notice this every time.
Fourth- Do not ask for disclosures the lender will not provide. Most lenders will not provide real property disclosures. The quickest way to have your offer declined is to ask for disclosures when the listing states no disclosures are provided.
Lenders want to get the most money for the property. They also want the simplest deal possible, the deal they feel is most likely to close. Thus, you want your offer to be clean, easy, and give the appearance that you have done this before. It is not uncommon for a lender to accept the cleanest offer over a slightly higher offer with complications.