Buying a foreclosure

[Sleek-Jet]

So what is the process of buying a foreclosed property? There is a house in our neighborhood that has come up as a bank owned forclosure sale.

Bigger house with a better floorplan, and it would be an easy move (yeah right).

 

[Yellowboat]

I moved across the street once worst move I ever had. The big thing you have to worry about is the bank will know absolutely nothing about the house. So they will have nothing to disclose. In other words, get yourself the best home inspector you can afford.

 

[DrunkenSailor]

I moved my dad across the street it was awful. If it is an reo (already foreclosed) the process is pretty simple. Get a home inspection if your he only offer ask for concessions they will probably give them but feel free to negotiate. Get the best home inspector you can. Any question on roof or foundation pay the extra money for the inspection.

 

[blowncommission]

So what is the process of buying a foreclosed property? There is a house in our neighborhood that has come up as a bank owned forclosure sale.

Bigger house with a better floorplan, and it would be an easy move (yeah right).

Whats the address if in California, Ill get the details for you.

 

[lakemadness]

If you end up going into contract on it, be prepared to be very patient. Ones I have done drag on for ever. Banks move slow.

 

[Rbcconst]

If it’s bank owned and there asking price is set it could be simple. As long as your offering the asking price. If your underbidding it can be a process. If it’s a short sale then the process can be extremely long. The first home I bought was bank owned. The second was a short sale.


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[blowncommission]

You mention two different types of sales possibly:

If the home came up as a foreclosure, it could still be going through the process and you may never it see it for sale publicly.

If the home is Bank Owned, it could already be listed for sale and ready to go. If it a bank owned sale they typically run pretty similar time wise to a standard sale transaction.

Every real estate site lists these types of properties differently, makes it confusing for most buyers.

 

[Cole Trickle]

Don’t most foreclosed properties go to auction... flippers are bidding them up pretty good in this market.

 

[blowncommission]

Don’t most foreclosed properties go to auction... flippers are bidding them up pretty good in this market.

They are all handled differently depending on the bank. Auction properties aren't the great deals they used to be. Too many get rich quick investors overbidding

 

[Rbcconst]

If it’s bank owned and there asking price is set it could be simple. As long as your offering the asking price. If your underbidding it can be a process. If it’s a short sale then the process can be extremely long. The first home I bought was bank owned. The second was a short sale.


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Correction my last was a foreclosure. Took forever and was extremely insecure all the way through closing.


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[Cole Trickle]

They are all handled differently depending on the bank. Auction properties aren't the great deals they used to be. Too many get rich quick investors overbidding

Yep..

Still a deal for a owner that can diy. But you better run a tight ship as a flipper or you are gonna get hurt right now.

 

[KevinR]

Find out who holds the mortgage or note on the property. It may be a private entity not a bank. Much easier to deal with.

 

[blowncommission]

Yep..

Still a deal for a owner that can diy. But you better run a tight ship as a flipper or you are gonna get hurt right now.

Exactly right

 

[Go-Fly]

So what is the process of buying a foreclosed property? There is a house in our neighborhood that has come up as a bank owned forclosure sale.

Bigger house with a better floorplan, and it would be an easy move (yeah right).

First thing to do is call the bank that holds the note and see what they are going to do with it. You can go look at public records and see what the liens are against the property. There can be more then one. Make a written offer via e-mail to the bank agent that is in charge of the property to get the ball rolling. Once it goes to action it's not worth your time. I have waited for some other house flipper to get up side down and over paying. Then do a private bail out. Most home flippers turn dollars waiting for that one big score.

 

[C-2]

Here in Cali, because of the rising home prices, many "foreclosures" are no longer bank owned. Rather, they are owned by investors who bid/paid more for the homes than was owed against them. Thus, the foreclosed borrowers find themselves in a "surplus of funds" position. Just because it was a foreclosure, does not mean it's a bargain. At least, not any longer.

Cali, NV and AZ are non-judicial foreclosure sale states where no judicial foreclosure/court process is required, and there is no redemption period. Homes are auctioned to the highest bidder and if nobody bids (clue 1), the bank by operation of law becomes the owner.

In other states, a foreclosed home may be subject to a borrower being able to redeem the property, and sometimes the redemption period is 1-3 years.

Happy hunting

 

[lbhsbz]

So what is the process of buying a foreclosed property? There is a house in our neighborhood that has come up as a bank owned forclosure sale.

Bigger house with a better floorplan, and it would be an easy move (yeah right).

Find a concrete wall, beat your head against it until you knock yourself out. If you wake up...do it again. Continue this process until you get the idea of dealing with a foreclosure out of your head

 

[Raffit78]

Call the listing agent, or the asset manager. Have them represent you. You’ll be moving in, in no time when they double end the deal




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[lbhsbz]

Call the listing agent, or the asset manager. Have them represent you. You’ll be moving in, in no time when they double end the deal




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right....here's the story of my last attempt. I'm over it.

https://www.riverdavesplace.com/for...me-property-short-sale-question.131822/page-2

 

[Springfield]

So what is the process of buying a foreclosed property? There is a house in our neighborhood that has come up as a bank owned forclosure sale.

Bigger house with a better floorplan, and it would be an easy move (yeah right).

1. Is it in California?
2. Is it listed with a real estate brokerage?

If 1 and 2 are correct you have 2 options:
1. Call the listing agent direct, remember he represents the bank, knows what terms they will accept and get your offer slammed and he keeps all the marbles.
2. Or find a reputable local RE Broker to represent you, the bank will pay him/her if there is a broker coop commission.

Just my 2cents.

 

[COCA COLA COWBOY]

I'm guessing you saw this pop up on Zillow as a Foreclosure?

If that is the case, I want you to know that zillow posts NOD (Notice of Default) properties as foreclosures. In order to be assigned a notice of default, an owner just needs to miss 2 payments. This can also be just missing 2- 2nd loan payments. I have 2 properties in an area I market that have been in default for years...one 8years, the other 10 years. If someone does not know how to fight the bank, they have a minimum of 6-9 months. With the vast knowledge of the public and fighting foreclosure, it's very easy to stay in the home for 2-3 years without even trying hard. There are attorneys that will keep you in your home for $1,000/month without paying. Lots of tricks in keeping the banks at bay.

There are REO/bank foreclosures, but they are few and far between at this time. However, I sold one last month. I did speak to my title rep about this very topic this morning though and he said the numbers are rising. We will never see the high percentages of foreclosures we did from 2010-2013, but the numbers will come back to a stable norm which will be consistent with history.

 

[Sleek-Jet]

Thanks for the advice everyone. The house is in IL, it is bank owned at this point and vacant.

It has a for sale sign up now, so it is on the market. I'll call my realtor today and see what she has to say also.

I am not as excited as much as my wife likes the house, at least from what we can see of it. It is only about 8 doors down from our current house.

 

[Raffit78]

right....here's the story of my last attempt. I'm over it.

https://www.riverdavesplace.com/for...me-property-short-sale-question.131822/page-2

The chances of getting a short sale to be approved is already not very high (at the price agent lists). If you think a listing agent is going to get an offer accepted or even quite honestly work for 2% commission for 4-6 months, you will basically never buy a short sale/bank owned property. Just how the cookie crumbles. I call short sale houses daily and put in offers all the time. If I can make a 20% return on my money after a bit of remodel work, then I'm game. Some agents can pull it off and some can't. They are under pressure to get as much money as they can for the bank. Only the few good ones will actually fight for you and get a bpo audited and get the price dropped.

 

[aka619er]

My house was a forclosure in Arizona. I tried to buy it 5 times and it kept falling in and out of contract. Each time price went down $20k. I called the 6th time I saw the sign still up and finally saw it. No negotiating needed as the price went down $100k on it's own. Was a normal purchase at that point with the bank instead of seller.

 

[wsuwrhr]

After bidding on and getting run over on SEVERAL offers....

This is xaaaaaaaactly what I did on the advice of my tax guy. Let them double end it and all of a sudden your offer looks better than everyone elses somehow.

I gave full asking price on a short sale in early '12 it didn't get approved until the tail end of '12.

A bury a body buddy waited 9 months for a similar short sale.

Call the listing agent, or the asset manager. Have them represent you. You’ll be moving in, in no time when they double end the deal

 

[Mandelon]

If it is already listed, then the process should be simple. As noted above, if you call the realtor on the sign and have them represent you, the chance you get the house is improved.

They will have a split fiduciary duty to you AND the bank. Do you research and see what it is worth, and what you are willing to pay ahead of time.

Often the foreclosures are overpriced. The bank asset managers are not always willing to go with the local agent's BPO. (Broker's Price Opinion). They want to look good for their bosses, so the homes are often listed above market value.

Man----->in the foreclosure business one way or another for 25 years<----delon

 

[DrunkenSailor]

If it is already listed, then the process should be simple. As noted above, if you call the realtor on the sign and have them represent you, the chance you get the house is improved.

They will have a split fiduciary duty to you AND the bank. Do you research and see what it is worth, and what you are willing to pay ahead of time.

Often the foreclosures are overpriced. The bank asset managers are not always willing to go with the local agent's BPO. (Broker's Price Opinion). They want to look good for their bosses, so the homes are often listed above market value.

Man----->in the foreclosure business one way or another for 25 years<----delon

I am a portfolio manager for a real estate fund. We should have a beer sometime.