Foreclosures in Dallas- Fort Worth Texas

Dear Buyer.

This is the Foreclosure GAME your about to play! It’s called cat and mouse and chasing a dream. You will not be told anything about the accepted price or other offers. If you follow this simple guide you will have luck with buying a foreclosure.

       There is a misconception with foreclosed homes on the market in DFW/Texas. The price the home is listed at is only a hook. It is set low to hook you in from online, and then to get you interested. The price is not what they want for the property unless it is at 85% apprised value. Still there is no for sure bid.  

Don't get your hopes up, the BANK wants 85% of appraised value. You must find out what the appraised value is.

Foreclosures are a good buy, but the bank is not going to just give them away. Especially not in Texas.  Our values are not going down and we have less than 1% of homes going into foreclosure.

The majority of homes entering foreclosures are between 1300 SQ to 3000 SQ. There normally first time purchase by first time borrowers.

What this means is that they have no money vest into the property. They borrowed 100% on an 80/20 loan. 80% first and a 20% second note.  Then they quit making payments after a few years without lowering the principal of the note.

So the bank has no room to drop the price. What the bank will do is lower the second note of 20% and take 5% of the remaining balance. This means you will win 99.99999% of your bids if you OFFER 85% of appraised value or higher.

If you like the house, don’t hardball the bank. It does not work.

How do you get the appraised value? You need a Buyer’s Agent. You need someone with access to the data to know what to submit.  Anything else is just a waste of your time and you will never hear from the listing agent and or the sellers (THE BANK).

They will only tell you it was sold to another seller or they have not heard anything concerning your bid.

If you offer 85% or higher you will have an answer within 24-72 hours. It is nice I know, but that is the magically number they want.

You can ask your friends, family and anyone you want concerning what you should bid. But, I would think asking a Realtor that has closed a number of these types of deals would know also. But I might be wrong.

The bank has a net amount and they will not go below it to sell you a house. You’re just a buyer to the 1000’s of deals they have to sell and make somewhat of a profit.

Myself, David Pannell. I have been in Real Estate for a number of years and have taken hour’s classroom instruction to have the knowledge I have. So, if you get frustrated and never win a bid…I have at least shared my secret with you.

Why offer a bind bid and guess at it……and wait for weeks not getting any feed back!

This blog entry currently has 2 comments posted.

David Pannell

I love when a thought comes together....

Janie

Everyone calls wanting a foreclosure. You really have to make them understand the process and terms, really understand! otherwise it is a waste of everyone's time.

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