Upcoming Foreclosures

So, I made an offer on a bank owned foreclosure...?

And, I offered 204,900, and I asked for 7500 in closing costs, which is a little more than the standard 3%. Now, another offer has been made (which I'm told is less) and there's apparently another coming in (at least). Expecting either a counter or a better offer than mine, I decided to change my offer to 210,900, which is $1000 over list price. Be real with me, I need some sound advice. What are my chances? Is it even possible with this scenario to calm the stomach bile? This really is our dream house. Thanks in advance, come get the 2 points. -M

Public Comments

1. The only answer really is who knows. Given three offers, the bank may return to the two lowest bidders and ask if they want to up their bids. If they do, you may still be outbid (if you are the higher offer). Of course, the bank could then always return to you to see if you want to up your bid.
2. We bought a house out of a probate auction last year and the reason we won is that we did not ask for anything, no closing costs or anything. At some point, the sellers are looking for people that are the least hassle, even if it is the bank. I would offer the best you can afford, but what you feel is a true deal. Don't worry about the waiting, we bid in February and closed in May, there are months of paperwork and insurance forms to all get together. If your bid is the best overall, then you will win. The bank will be greedy, because there is no emotion in it for them.... it's all on you. The funny for us is that we found out we won while in the middle of a tour of another house. My advice is to go check out houses in another area and get your mind off of it. It took 3 bids to get one house for us, consider that a standard practice. Best of luck, Chuck M.
3. Bottom line, whoever has the highest bid will win. Based on what you said, the foreclosure company (bank) will likely come to you and accept your offer minus the closing costs. That is, IF no one outbids you. In my experience, banks/foreclosure companies don't pay closing costs. Actually, a lot of private sellers don't pay closing costs either beyond what is standard seller's fees. The bank in your instance will want to get the most money from the deal as possible, and they will accept the higher offer. If I were you, I'd take the closing costs out of the offer. That may very well be a deal breaker for them.
4. There is always the possibility that you will get it. If for some reason you don't I am sure that when the time is right something else will come your way. I wish you the best of luck with this one.