Foreclosures, REO, Bank Owned – Increased Deposit Amount for buyer

I get this asked a lot by my buyer clients in the current San Diego Condo Market:  “How can I increase the strength of my offer in the eyes of the banks?”   Because buyers are making offers on REO/Foreclosure/Bank Owned properties in the condo market these days many of them are wondering how they can be most competitive in a very common multiple offer situation.  Many buyers think that increasing their good faith deposit will increase the strength of their offer.  Anything beyond a 2% GFD is not needed (typical amount accepted by the bank is 1.5% of the purchase price).    Banks would rather know that you have a solid pre-approval (having undergone a full underwriting review with the actual investor/bank) and providing PROOF OF FUNDS on a significant down is the absolute best way to get your offer accepted with the bank.  You will also need to be competitive on price, of course.  The banks simply want to know you can and will CLOSE.

REOs definitely take more dilligence but once you get into escrow, there are less unforeseeable snaffoos that can occur!