I am thinking of buying a preforclosure for my family home. I just had a couple questions. The house is listed with an agent. Should I go through the agent or straight to the lender? I have never negotiated a SS before but I am a little familiar with the process. I would think I stand a good chance since I am willing to pay a bit more than the average flipper.
Next question, The BPO can vary +/-10% from actual market value. How close to the BPO do I need to be to get the lender to seriously look at it?
Lastly, how long does the process usually take? I am on a bit of a schedule for moving.
You should work through the agent. The lender won’t talk to you unless you have authorization from the owner. Also, making your offer through the agent will give them full commission so they may be willing to work harder to get the deal done.
Every lender is going to be different on how flexible they are with the BPO and how long it will take. There are no set guidlines on this.
You can go to the owner directly with a Buyer’s Authorization. The banks atty needs the seller’s name, the loan # or address, the potential buyer’s address and verbage for the payoff/Reinstatement amount. The lawyer would discuss over the phone. Make sure you fax it to the lawer and send them a fax number where they can send the reinstatment doc to unless you go to the atty’s office. Make sure you send that to the lender’s Loan mitigation dept as well. They won’t work with you either without the authorization.
The agent isn’t returning my phone calls so I may have to go the other route anyway. Glad he’s not my agent, kinda hard to sell a house when you don’t return calls. DUH!