Montgomery Village, Maryland is located about 20 minutes from Laurel, Maryland. I have a client who wrote an offer on a foreclosure and it looks like we will be closing next week. As noted in some of my earlier post, foreclosures can be tricky and full of booby traps.
How is this foreclosure making it to settlement?
This foreclosure deal is going to work because everyone wants it to work.
First, the home is priced very competively in the neighborhood. This home is priced at about twenty thousand less than the last foreclosure sale in this neighborhood. Secondly, though the home needs work, it is not in that bad of shape. By the time my buyer saw it, the bank had already put in new windows, new carpet and fresh paint.
The third thing was the buyer. I presented the buyer with ample information that the property was priced extemely well. The buyer wrote a very fair offer on the property. In addition, the buyer knew the property would have issues, but was still a great deal at that price.
The fourth ingredient was the bank that owned the foreclosure. The bank accepted the buyers’ offer provided, the buyer used the bank that owned the property. The bank promptly provided a Good Faith Estimate on a FHA 30 year fixed loan. Following my advice, the buyer accepted the terms from the banks lender.
And lastly, a couple of other significant points. The listing agent responded promptly to all communication. The bank was willing to provide a one year home owner warranty, a new stove, and a new refrigerator.
This foreclosure sale worked, because everyone in the transaction wanted it to work.