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- 1). Find the foreclosed home on which you want to make an offer. Lists of foreclosed homes are available from banks and realtors.
- 2). Order a home inspection, even if you are unsure if you'll buy the home. An inspector can tell you whether the home is worth the asking price. He can also warn you of any major damage the house has, whether cosmetic or structural. Compare the bank's selling price with the value of the home to see if it is a good deal.
- 3). Examine the inspector's notes and decide on the amount you want to offer. You may want to offer less than the price the bank is asking because of repairs that need to be made.
- 4). Prepare yourself for a counter offer from the bank if you bid less than the asking price on a foreclosed home. Many of these homes sell "as is," meaning the bank will most likely not come down in price or promise to fix or provide funds to fix any damage.
- 5). Set up an appointment with the mortgage department of the bank that holds the note on the home. Take to the appointment the inspector's report, your banking information and a note from your bank, or a just-printed copy of your bank account balance, to prove that you have enough cash. Before the appointment, ask if there is any other information the bank would like to see, including credit reports or other financial information.
- 6). Discuss your cash offer with the bank. If you are offering less than the asking price, make sure you explain why, such as how much it might cost to make repairs.
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