Buying Bank Owned #1

I have a few buyers looking at bank owned property so I have been looking at a lot of bank owned property.  We also have been writing offers.  Most unsuccessfully.  Though yesterday I had a buyer close on one.  Even that had glitches occurring right at the closing.  During all of this I have come up with some thoughts on what actions by the buyer will help you have a successful outcome.  I'll post these thoughts in different posts going forward from today.

The first thing you have to have is a laid back attitude and faith it will work out and that some of the people you are dealing with will do most of what they say they will do.  Otherwise, you will drive yourself crazy and the frustration will put you into an early grave.  Many of the actions of these lenders/sellers doesn't make sense to a normal, rational person.  You just have to keep reminding yourself that these are the same people who caused this mess in first place so why should they act more rationally now. 

The paperwork is heavily written in the seller's favor.  It seems like they can do whatever they want even though you have a signed contract but if you deviate from the contract they can come down on you. So, my first piece of advice is to make sure the addendum caps your losses to your deposit and they can't come back after you for more money.  This is called liquidated damages. Therefore put as little money down as possible.  Let, me repeat put as little money down as possible.  That way if the people you are dealing with, and there are several layers of bureaucrats between the buyer and seller, end up not doing what they said they would you can pull the plug on the deal and only lose your deposit.