Money to put an offer in on a house in Preforeclosure

[Tracy Sharpe]

There is a house near where I live and it is going into preforeclosure. It was built in 2005. I am listening to various podcasts and many of the people I hear say that they put offers in on 30 or 40 houses at a time. If one comes through then they deal with trying to get the money. My question is that if you put an offer in on a house, what can you lose if you don't get the financing? Ernest money? Bad reputation? I don't know because I am a newbe at purchasing homes in this manner. Can anyone share their experiences.

[Daria B.]

Yes, both. I'm not sure why so many advocate putting offers in on several properties at a time when the liquidity is not there.

There are several properties that I evaluate and analyze (always honing your skills) and then choose which one I will offer. Since I look at several, these other properties that I would offer on if that initial offer does not go through (meaning the seller is so stubborn that negotiating isn't going to work).

If offering on several at a time and then withdrawing, after so many times doing this I would think agents will not want to work with that person knowing they are going to be withdrawing the offer.

I did once make an offer and withdraw. The time span between the offer getting to the seller and my seeing the property was a matter of hours. I would have waited for the offer to come back but my agent was available to show me the property so I jumped at it. After seeing it, it wasn't worth the headache to fix and put back what the sellers had done (mutilated the house) to the property.