Finding properties in foreclosure nowadays is fairly easy due to the depressed markets, yet it is also easy to find the foreclosures in real-estate markets that are strong. The differences in these markets is that you will find a lot more foreclosures in the falling real-estate markets.
Many of the pre-foreclosure homes which were once on offers in the form of a short-end sale land up as a foreclosure, which is deeded eventually to a bank. Reasons why buyers might be refusing to purchase short-sale homes are usually associated with the following:
– The property has been vandalized or the seller has stripped the home of all its valuable assets.
– The bank is refusing to accept an offer that is less than the present mortgage balance.
– Buyers pass up a short-sale, and rather pursue a purchase that is a lot more hassle-free
– The neighborhood or/and location of the house is undesirable.
– The listing is overpriced and is still at the mortgaged amount.
– The seller failed to qualify for the short-sale.
Tips On Finding And Purchasing Foreclosures
Not all of the foreclosures are considered to be a bargain, and a few can result in unexpected nightmares that you were totally unaware about. There are also a few drawbacks involved in purchasing a foreclosure. Yet there are many foreclosed homes which are classified as rough diamonds waiting to be discovered and polished. Buyers that are inexperienced in buying foreclosures may benefit from hiring an experienced real-estate who can offer assistance and guidance. There are a number of different ways to go about finding foreclosures, regardless of whether you decide to work alongside an agent that is experienced in foreclosures or not.
Real Estate Agents
There are a number of agents that specialize in the listing of foreclosures. These agents have the know how on entering search values in MLS (Multiple Listing Service) which brings up the foreclosures in the areas that you are interested in. Consumers are unable to obtain access to these MLS lists like real-estate agents do.
It is recommended to ask a buyers agent to conduct a search for the REOs (real-estate owned by lenders), and when you notice one listing agent name that comes up multiple times, pull up the profile of the agent and look over their listings. In most cases you will find several foreclosures on offer or you can contact the agent directly to find out about the listings they currently have.
Real Estate Signs
Taking a drive through a distressed neighborhood that you are interested in, is another way to locate foreclosures. These signs will usually read:
– Bank Repo
Contact the agent that features on these signs and find out if they know about any other listings that are about to come up. Agents that specialize in the foreclosure markets in some cases wait many weeks while the banks approve listing prices. This means you can get ahead of the other buyers when you ask about any new foreclosures which have not yet been listed. If you have hired a buyer’s-agent, you should be asking them to retrieve this type of information on your behalf.
Primary Bank Websites
Many of the banks today have their own lists online of the foreclosed properties. Yet not all of these banks will directly sell to the individual buyers. The practice that is more common with the larger lenders is to dispose of these REOs by bundling many into a single package and then selling this package at a discounted price to investors.
Some of the national lenders that maintain a website of these bank-owned properties include:
– Wells Fargo
– U.S Bank
– Bank of America
Asset Management Firms
Some of the lenders will hire asset management businesses to work on behalf of the lender with foreclosures. For example, Wells Fargo uses a company known as Premiere Asset Services. While Keystone Asset Management is the national agency who handles defaults.
Some of the government agencies will require that you use a real-estate broker in order to conduct offers to purchase. While others may allow you to submit your own offer. Some of these agencies include:
– Fannie Mae- Foreclosure homes found on its HomePath website
– HUD- The Department of Housing and Urban Development’s foreclosure houses.
– SBA- Known as the Small Business Association has a list of the foreclosure sites along with guidance.
– Department of the Treasury- These are properties which have been seized by Internal Revenue Services
Many of the auction companies frequently hold big auctions, where in some cases they will sell over 100 different houses in one day. While most of the experts suggest that the auction companies obtain a higher price due to auction frenzy that comes about among all the bidders, in some cases you could land on a real gem. Some of the popular Auction Houses include the following:
– J.P. King
– Real Estate Disposition Corporation also known as the REDC
– Williams & Williams
– United Country Auction Services
Internet Foreclosure Firms
The foreclosure companies that are web-based such as http://foreclosuresdaily.com will provide buyers with the list of the current foreclosure homes. One of the reasons for this fee is that it will take expertise, trouble and time to assemble and locate the national lists of foreclosures. It may be worth your while to consider this option and allow these companies to conduct a search on your behalf. Some of the reputable sites include RealtyTrac and Foreclosure.com.
Courthouse Steps Auctions
You may also land on an excellent foreclosure by bidding on a property on courthouse steps. However, keep in mind that the professionals usually reign over these premises. The drawback about this option is that you have to pay out cash for the home without seeing the property, and you may be taking on judgments or liens or you could even be forced into paying for delinquent property-taxes.