      
 How to Deal With a Bank That Rejects Your Auction BidPublished: Thursday, February 19, 2009 You've done your homework. You've inspected the property. You've brought your $5,000 earnest money deposit. You've already secured your guaranteed financing letter. You're ready to bid for the foreclosed property of your dreams. Quickly the bidding gets fast and furious. For a moment you wonder if the other bidders will drive up the pricing on your dream home beyond your guaranteed financing. Suddenly, the auction is over and you're the winning bidder! Then, the bank rejects your offer. What? Can they do that? Yes, in some foreclosed home auction instances, they can. The bank can decide the winning bid is too low and they can reject the offer. It protects them from collusion among bidders who get together and pre-determine the selling prices of luxury homes, high valued estates, etc. If bidders get together and decide the price of a $5 million beach front Orange County foreclosure will be $750,000, the bank has to be able to protect their assets. They have already lost money on the original mortgage. They want to get rid of the property quickly, but they need to be able to make reasonable business decisions as well. Start NegotiatingAs the winning bidder, the other bidders at auction have already deferred to you. Think about your winning bid and decide if you can afford to go higher. If so, approach the bank representative with a counter offer to their rejection and see if they will take your revised bid. Many times showing good faith that you really want that house and not just any house at a fire sale price will convince the bank to accept. If the bank rejects your second offer, ask what number works for them. The purpose of listing a home at auction is to get it sold, so the representative should be able to provide you with that number. Ask yourself a) can you get financed at that price; and b) do you really want to pay that much for that particular house. If the answer to both questions is yes, then by all means offer that amount and the deal is done. If not, then you can thank the bank representative for their time and move on. There are plenty of other foreclosures out there at auction, or listed with foreclosure specialists like Oak Tree Realty Group, Century 21, etc., that it won't be long before you're living the American Dream of homeownership. Other Recent ArticlesHome Buyer Tax Credit Extended Until April, 2010Category: Recent Articles Published: Thursday, December 10, 2009 The federal tax credit has been extended to April, 2010, including an expanded benefit to existing home owners who sell their homes and then repurchase a new primary residence valued at $800,000 or less. This could be the perfect opportunity for buyers who wanted to cash in on home auction bargains but were fearful of lower resales on their existing homes. 57,000 Foreclosures Remain in California – Lenders Scheduling More Home AuctionsCategory: Recent Articles Published: Thursday, December 03, 2009 The Southern California foreclosures market may be shifting, with fewer homes entering foreclosure than in previous quarters. However there are still 57,000 existing foreclosures statewide that need to be sold, and lenders are looking at foreclosed home auctions as a major tool to sell large numbers of foreclosures in a short amount of time. Southern California Foreclosures Still the Bulk of Home SalesCategory: Recent Articles Published: Friday, November 27, 2009 Southern California foreclosures still account for the bulk of area homes sales and lenders are finding real estate auctions the fastest and most efficient method of clearing their books of REO properties. Buying a home at auction requires a little prep work, however and the experts at homeauctionexpo.com share their insight on how to find the best auction properties.  February 2009
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