Buying Directly From The Lender
Armed with the necessary cash or mortgage loan approval, you can then make an offer to the lender. If you know or get to know someone of position at the local bank, you may be able to approach that executive about available REO (Real Estate Owned) properties, the term most banks use for properties that have been fully foreclosed. Smaller banks and lenders are sometimes willing to sell REO properties directly to qualified buyers, when possible. This allows them to save real estate commission and other marketing expenses.
As you negotiate with the lender, remember the benefits you bring to the table. The most important benefit is time. Each month delay is additional expenses for the lender in the form of unpaid interest, property taxes, late charges, attorney fees, legal costs and administrative expenses. Just by avoiding the final foreclosure and sale, lenders can save up to $10,000.