Cold hard facts in Buying a foreclosure property

I work with several different Banks in helping them market their foreclosed properties and people always ask me, “What bank is selling this property” I tell them and then ask them why they wanted to know.  Nine times out of ten they tell me they want to contact the bank so they can negotiate an offer. The banks selling the foreclosed properties don’t work that way.

FACT

Banks hire Realtors to list and sell their Foreclosed properties

The banks hire local realtors to manage the properties for them, list them for sale and sell the properties. The listing agent helps the bank will all sorts of things such as getting any remaining personal property removed, paying for and making sure that all the utilities are on, paying for and coordinating any repairs or maintenance the property may need, showing the property, writing up offers and selling the property for them.  The banks typically have several hundred thousand foreclosure properties through out the United States. Can you just image a bank President in Texas trying to manage any of those items from Texas for properties in all the different states? I would think he would have other more pressing matters than talking to contractors, gardeners and people wanting to see the house.  Can you imagine the questions? Is the house on 123 Main Street still available? Is it close to shopping? I’m sure the bank president in Texas would have no idea, nor should he. That is not his job. It is the job of the local Realtor to help buyers with local information and help them see the homes.

FACT

Foreclosures are such great deals the banks are grateful for any offer. NOT!

Banks know what the market is because the local realtor that has the property listed for sale tells them. The bank also has the home appraised before it is even put on the market. Typically the bank list the house about 10 to 20 percent under what market value is because they want the home sold as soon as possible. That does not mean that they are going to give it away and sell it for 50% less. I think sometimes buyers go to these weekend seminars and come away with some really interesting thoughts or they just think the banks are desperate. Every once in a while a buyer will get a screaming deal on a foreclosed home, but it will be a home that has been on the market a very long time or the area and or condition is not that good. Otherwise, it will not happen.   

FACT

All types of homes are foreclosed homes

I have seen some homes that you have to hold your nose when you go into them so as not to breathe as it smells so bad and I have seen homes that are just pristine. There are all types of homes that are foreclosed properties. Some don’t even need any repairs at all and others have the whole kitchen missing. It just depends.

FACT

You get title insurance and good title

The title and escrow process is pretty much the same as when you buy a regular home. You get clear title. I have never heard of anyone buying a foreclosed home having an issue with title.

FACT

You need an experienced Realtor to help you with a foreclosure purchase

Yes, foreclosure purchases have a few different nuances about them and you should have a Realtor that is experienced in foreclosure properties assist you as you should when you purchase any other home. Each bank is different, so each transaction may be a little different in what the Bank will and will not do or pay for. Look to your Realtor for advise on these issues.

Don’t be afraid. You can buy a foreclosed home today and close escrow in 30 days. Just remember, typically, the foreclosed home you buy is “As Is” and the seller will not fixed anything. They are still great deals!

72 thoughts on “Cold hard facts in Buying a foreclosure property”

  1. Xenia Arno

    Thanks for this interesting information.

  2. Ronald Stieb

    Thanks for this usefull information.

  3. Dusty Nyholm

    This post is good.

  4. Shawnna Ferraraccio

    This is a usefull post.

  5. Boyd Gosier

    This is a good post.

  6. Cary Gillis

    Thanks for this interesting information.

  7. Louetta Mcnickle

    I like your site.

  8. Lilla Jarred

    This is a good post.

  9. Karl Henkes

    I found this information usefull.

  10. Humberto Nitzel

    This is a interesting post.

  11. Jesus Suhoski

    I love your site.

  12. Pingback: dentist st petersburg
  13. Short Sale Help

    This is great. I have been looking all over the web and finally found good content. I am adding you to my google reader so I can keep up to date with your content.

  14. Short Sale in Florida

    I found your blog because I wanted more information on your expertise. I run a blog and I am looking for good content to link to for future posts. I like you site so I am adding you to my google reader.

  15. John

    This is a good blog. Keep up all the work. I too love to blog. This is great everyone sharing opinions 🙂

  16. ing Brandon verzeker

    Hi, I like your post. I wish everyone would pay such attention to their post as you do. I came acros your blog on yahoo when searching for an insurance. Glad i found your blog! Escuse me for my poor englisch, i am from holland.

    Best regards!

  17. Geralyn Pelow

    What a blogpost!! Very informative also easy to understand. Looking for more such writeups!! Do you have a twitter or a facebook?
    I recommended it on digg. The only thing that it’s missing is a bit of color. However thank you for this blog.

  18. Anonymous

    I was looking for more information on your subject and found your blog. I really think you have a nice looking blog. It has a nice design and layout. The content is exceptional and that is really the most important. I have added you to my google reader and look forward to reading more. It is impressive.

  19. Anonymous

    Hey, I enjoy the blog post! Really enjoyable read! I don’t know if you have a Twitter or not, however I’m going to follow from @dmastylo if you let me know what it is?

  20. I’m not positive the place you are getting your information, however good topic. I must spend some time studying more or working out more. Thank you for magnificent information I was on the lookout for this information for my mission.

    my weblog kredyt pozabankowy

  21. Hellο, just wanted to saу, I loѵеd this blog post.
    It ωas helpful. Kееp on postіng!

    Ѕtορ by mу sіte :: info about media

  22. All good points to uratnsednd Mac, however, there is a great alternative to walking the foreclosure and Short Sale minefield. It is New Construction. You get No surprises and new everything. New Home Builders are pricing competitively and there is tremendous value to a new home purchase. Foreclosures and especially Short Sales can take many months to close, if you have 90 to 120 days to wait to close then you are a perfect Pre-Sale candidate. In addition to all the benefits mentioned you also get to pick colors. Choose your cabinets, countertops, back splash, flooring and other fixtures. On move in day you will just need to move in. You won’t need tow or three weeks to make the home habitable. After all you don’t want your furniture on the dirty carpet, your shoes, socks or feet on the sticky floors. In most all cases the Builder’s interior colors will be very pleasing so there will be no Pink, Lime Green or purple walls to paint over.So consider looking at new homes, there is new construction at all price points and most builders, especially the local ones, who are willing to work with a buyer to ensure the new home meets all of their needs.

Comments are closed.