Forclosure information

I am looking to buy a foreclosure and according to my RE agent they go quick and it might not still be available. Hes got me in a rush and now hes taking his time with the offer. What is the average time on the market and what is the chance of me getting it if I give them what they are asking for it? I’ve heard there are a lot of cash buyers.
BTW its been on the market for about 2 weeks now.

There are several kinds of foreclosures – and time frames vary with them.

HUD – Initial ten day bidding period. Five days for BOM or price reduced.

VA – Initial ten day bidding.

Bank Owned – Varies from one bank to another. Could be sold that first weekend, could take months.

IRS/HOA/other taxing authority owned homes – varies greatly.

If a house (foreclosure or not) is priced right, it should sell fast.

When you find a house that is priced well, do not delay. If your idea is to give a low bid, it might not matter.

My boyfriend is looking for a cheap house in Pennsylvania. He is considering foreclosure houses. This would be his first time living on his own. Neither of us have any idea on this subject. So if he decides to buy a foreclosure house. How would he go about paying for it? Do you pay instantly or monthly? If you do pay instantly, besides utilities and taxes are there any other expenses? Any information would be helpful at this point. Thanks a lot!

Hi frosty052489,

Here are few things you need to know about bank owned homes.

~Banks are overwhelmed right now dealing with their foreclosures; therefore, response time is very slow. Close of escrow can take be up to 60-120 days.

~They usually sell their home at rock bottom price. The negotiation for much lower price is slim. In your case, go ahead and give it a shot. What banks care about is their bottom line.

~Banks do not conduct any repairs; therefore, get it inspected so there will be no surprises. Make your offer contingent on the inspection.

~Find a real estate professional that has experience in dealing with banks. Also look for someone that has an ABR (Accredited Buyer’s Representative) designation. Go to http://www.rebac.org to find one in your area.

There are many more details. Your real estate professional can guide you through the process.

I’m looking to buy a foreclosure, since real estate is expensive here, I can’t afford a nice home in a decent area. A foreclosure would be perfect, however I don’t know how to find one and once I do, I don’t know what to do after that. Does anybody know how the process works?

Find a Realtor who knows how to sell HUD houses. Do not call the listing company – their contract with HUD does not allow them to represent the buyer. They are required to do the best they can for the seller (HUD).

On most houses, there is a live person on the other side, evaluating your offer. At this time of year, on bank owned and VA owned houses, if no offers come in high enough to please them, they’ll wait until the market picks up a bit – or the buyers are done with the visiting relatives, and come back out to place higher offers.

On HUD houses, there is only a computer on the other side. It goes simply by the numbers, and there are deals to be had. Best weeks are holiday weeks with bad weather that keeps the other buyers cozy at home, enjoying the egg nog… while you’re out stealing a deal!!!

I would like to buy a foreclosed property from auction. I would need a mortgage to pay for the property. If I go through the bank how do I do this? I also do not have the 10% down that the county requires on auction day.

Ifyou go to your banker or to a mortage broker and see about getting preapproved and let them know your intentions and see if there is a program that will back you in your purchase …

Good Luck!

I would like a good deal Im new to the foreclosure market and never even bought a house before. Can anyone sum up for me real quick the fastest way to do it? I read http://provenforeclosurefortunes.com lets you get a house for $600, has anyone ever got a house from them? Im looking for the fastest way to buy a cheep house thanks.

Sounds a bit suspicious. I would suggest reading books on the subject. Some will even walk you step-by-step through the process of obtaining, preparing, and selling foreclosure properties.

Foreclosure Short Sales Kit
http://tinyurl.com/mcpydz

Foreclosure Investing for Dummies
http://tinyurl.com/m9zvhq

…or really any number of good books on Amazon.

I am about to get a good settlement and want to invest in this foreclosure homes. I heard u can go and buy some at ur local banks, but can i sell it the same month to a investor for double the amount? Some investors don’t even look at the house, they just give a price based on the year and how much it may be in the market.

In Illinois and some other states, this practice is illegal under certain circumstances. If your plan is to buy homes directly from foreclosure victims and then resell them immediately for a profit, it would be illegal in certain areas. This is basically an equity skimming scam and if you are caught, you could get in serious trouble.

This has become a serious problem, because investors convince foreclosure victims to sell their home at a very low cost. They do this and claim to be helping these people avoid foreclosure. In reality, they are hurting these people and making it much harder for them to recover from foreclosure.

I believe if you are purchasing from the lender/REO/Trustee these laws would not apply.

But as another poster said, why would someone pay you so much for that home, when they could have just as easily purchased it for the lower price themselves.

Based on your knowledge of real estate and the current real estate market, I would highly recommend investing your "good settlement" elsewhere. There are plenty of "get rich quick" real estate/foreclosure schemes out there, but most are bogus and could end up costing you everything!

I have worked full time in the foreclosure industry for over 10 years now and I know more people who have lost money on foreclosure properties than have made money. Foreclosure investing is risky business and requires a lot of knowledge and patience.

If you want to try the market out and you can afford to lose $30,000, then give it a shot. You may get lucky and you may find a buyer, but don’t do it unless you can afford to have that money tied up for a long time or completely lost.

You should also plan on spending additional money on repairs or improvements. If the lender is selling the home for $30,000, then it’s probably because it needs repairs or it’s only worth $30,000. You might need to take care of the repairs/improvements yourself to sell it for $50,000.

Good luck!

I assume they are buying foreclosure properties from banks. They are buying them at prices seemingly not available to the average buyer.

I think the same prices are available to everyone. These buyers are prepared to buy fast and many have cash.

Banks who are selling foreclosed real estate love cash buyers. So a cash buyer has a big advantage. Banks will take lower offers from a cash buyer compared to other buyers who need financing.

My husband and I really want to buy a home, we’re tired of renting and feel as though we are merely throwing our money out the window by doing it. We’re pretty sure that a foreclosure is the way to go, but we’re young, I’m only 22, and we aren’t 100% sure on how they work. We realize that sometimes houses that go into foreclosure aren’t always in the best condition, but seeing as my husband is a contractor, a fixer-upper would be ideal. Could someone explain how buying a foreclosure works to me? Thanks!

First you need to know what you may qualify to purchase, (keep in mind that what you are comfortable with in a monthly mortgage payment is not the same as the limit your can afford to buy). Talk with several lenders. You are first time buyers, so you would be entitled to the government $8000 off your taxes, but you need to buy before Nov 30 of this year. So get moving.

After you know what you can afford to buy, then you need to work with a Realtor that has experience handling foreclosure sales.

You might want to avoid "short sales". That is where the owner is trying to sell before foreclosure and requires the lenders approval. It’s a pain in the ass and most lenders can’t make a damn decision. So stay away from these.

Bank owned or corporate owned means it has already gone thru the foreclosure process. The lender owns it can still take time to get answers. But when it’s corporate owned (by investor) most times the answer is quicker. Althought, if owned by Fannie Mae or Freddie Mac their are the best, you will get anwsers within 2 days.

Once you find a place, all I ask is that you do two things #1 have a whole house inspection which can cost $300-$475, and at closing by title insurance.

I have heard you can do this- and would like to forego the realtor- go directly to a bank. I know they own their foreclosures- obviously- so this has got to be a possibility.
Any feedback helps. Thank you

You can not fore go an agent. The bank can not legally sell property, they do not have a license to do so. You can call, but they will only refer you to their RE agent. You are much better off having one of your own, theirs will be looking after the banks best interest, not yours.

I am trying to get more information on being able to buy and sell homes in Michigan by aquiring a license. (i.e. buying foreclosures, etc.)

Knowing REALTORS® keep busy schedules, The Michigan Association of REALTORS® has teamed with Thomson Computaught to bring members online training. Now meeting your continuing education requirements can be done on your time from the comfort of either your office or home.

Learn more about online training here

Licensees have until October 31, 2006 to meet their ConEd requirement for 2004-2006 licensing cycle.
For additional information, click here.

You cannot repeat any of the courses during the 3 year license cycle. The Department does not allow credit for duplicate courses. If you have already taken a 2004 Legal Update, you cannot take it again for credit. We hope to have a 2005 version available soon!