Home buyers focusing on central coast foreclosure properties are running up against lender pre-qualification requirements when bidding for bank owned properties. Many bank owned (REO) property listings require that potential buyers get pre-qualified with their company in order to place a bid on a property. Countrywide, Wells Fargo and Fannie Mae (Express Path) listings frequently have this requirement. Generally, buyers are not required to use that lender for the purchase; however lenders sometimes offer incentives to use them such as waiving appraisal and/or credit fees. Many buyers understandably object to getting an additional credit inquiry, or essentially opening their financial life to the party that they are negotiating with.
Where buyers have refused, and I have submitted offers without the requested pre-qualification, I received phone calls and emails from REO listing agents saying they will not even present the offer without the requested/required pre-qualification. This type of requirement adds to the current competitive buying environment. For example, if a buyer has a complicated credit picture and cleared their credit hurdles with one lender, they may be confronted with clearing those same hurdles in order to bid on a house they really want. That can take time, and time can mean their offer is not presented in time for consideration. Buyers should be aware that they may run up against this and other requirements when buying foreclosed properties on the central coast.
Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLovetheCentralCoast.com
www.SellMyCentralCoastHome.com
www.CentralCoastRealEstateSearch.com
*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.
