Buying A Foreclosure In Cape Coral

By Author: Razvan Jr
Total Articles: 273
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So you have decided to get a house in foreclosure in Cape Coral, Florida. You will be doing a good job as this is the best time to get one. The property values have been increasing little by little month after month since the spring of 2010 and you can expect a very nice equity sooner than you think, especially if you buy a Cape Coral foreclosure.

However, there are many buyers out there that believe that if a foreclosure is priced at, let's say, $100,000, they can only offer between 10% or 20% less than the current asking price, empowered by a significant down payment, and thinking that after all, it is foreclosure time for just about everyone. But, the reality is not that simple as many of us might have thought in the first place.

If you have decided to buy a property in Cape Coral, Florida, you need to make sure that you have everything put in order; here are a few ideas about how to prepare for this significant decision:

First of all, you will need to obtain the pre-approval document. A foreclosure's owner is most of the times a ban or in some cases a person or a company who made a private financing ...
... for the buyer. Most likely, you will have to make an offer to a bank. You need to know that the banks are not in the real estate business, but they definitely are in the money business. This means that they do certainly not want to waste their precious time and they want to be certain that the next buyer is indeed fully capable of buying. In translation, you won't have any chances of getting your offer reviewed if you don't have a pre-approval document which is signed by your bank or by the mortgage broker even in the situation in which your offer is twice their asking price. Getting a pre-qualification will not help at all which is why getting the pre-approval document is a must.

After getting this document, you need to get your proof of fund for the upcoming down payment. The vast majority of the banks (if not all of them) will ask you for a proof of fund for your down payment or if you are planning on paying in cash. The situation is pretty simple: if the bank cannot see a proof that you have the money, they will not sign your offer.

This might come as a surprise for you but be prepared to offer a price higher than the asking price. Some say that at the moment, in 95% of the situations, the below asking price or even your asking price offer will not suffice. There are many situations in which attractive foreclosed homes were sold with an easy 15% higher than the asking price. What this means that you need to be prepared to pay little bit more than you have thought in the first place. This advice comes from Cape Coral realtors that figured it out based on real life situations.

About Author: Learn more about Cape Coral real estate by visiting our website located at www.floridacapecoralrealestate.com , where you will also find Cape Coral properties for sale .