What do banks consider with multiple offers on a bank owned property?

Question

I just recently placed an offer on a bank owned house. It was listed 205k. all the houses in the neighborhood are pricing between 225k-275k I made an offer of 215k, as is, no inspection, closing in two weeks. I also sent over a fha comment letter(not a Pre-approval letter) which they committed up to 235k. I also included that i will pay all of closing cost and sent proof of funds for that also. The only promblem there are 17 other offers. I was wondering whats my chances and what do the banks consider in these types of situations.

Answer 1

whoever has the highest price in that situation will take the house the banks only think about money the highest price and who can come up with the money the fastest

Answer 2

Your offer is not likely to make it to the consideration pile because FHA will not approve a loan on a home that is not inspected.    They have really cracked down and will require that the house be inspected and be habitable.

Answer 3

I am now on my 40th offer on bank repo's.    I've been successful on 2 of them.  Dealing with the banks has been a nightmare.  I understand that they are swamped.

DOn't pay over the asking price ever again.  Be a tough bargainer.  There are a ton of houses coming on the market.

Answer 4

cash deal versus mortgage contingency would win

fewer contingencies and higher the price

sounds like you did everything you could (except get preapproval letter)

bank will takes it time probably, too, in deciding

Answer 5

proof of funds...who has the cash at hand quick & how soon can you complete.....that is the way they are doing it now..loads of people claim to have funds when they don't so that is what they look for....

Banks don't care about the highest price..they will claim it off the insurance whtever the shortfall...they are just looking to get rid in the current mkt asap...

Answer 6

Let me not burst your bubble, but all the other houses being priced around 225 - 275 means diddly.

Some of this houses will  soon  go in foreclosure and some are on the market for 2 years

Owners still asked for prices from 2007, but real selling price is today 30% less then in 2007.

Be careful what you ask for, you may get it.