Buying bank owned properties; AKA: REO, Foreclosures, Repos, Repossessed Homes, Distressed Sale etc...
There is a lot of interest in buying bank owned properties these days. A lot of information, some good and some bad, is floating around about the subject.   Often the information offered is for sale, with the promise that you can make a lot of money with little effort once you know “the secret formula”.  The fact is that there are no secrets, and to make money does require effort.                                                                                  

Bank Owned Property
These homes can be a great opportunity for everyday home buyers and real estate investors to score some great deals. In most cases, you are able to inspect the property, get an appraisal, obtain financing, and even get a home warranty, just like a normal home purchase. The banks need to sell and they are pricing these homes low attempting to attract multiple offers and eventually a higher price.

When you sign up for the Bank Owned Property List, we can customize your foreclosure search to meet your specific criteria. Your list can be filtered by hundreds of options such as area, schools, bedrooms, size, price per square foot, and so much more...or you can simply ask for the complete list. An agent will contact you to discuss you needs. Detailed property information complete with pictures and addresses will be provided to you in REAL TIME via a private website where you can view the foreclosure properties as well as save your favorites and add your own notes to each property. An email notifying you of new properties can be sent monthly, weekly, or daily.

Short Sales
These are homes listed by sellers who, even if they get a full priced offer on the home will not net enough to cover the existing mortgage on the home. The bank(s) holding the mortgage must approve the sale allowing the “loss”.

Buyers and sellers are often frustrated by what can be a slow and it’s an uncertain process getting short sale approval from the bank(s). You may want to contact me for the latest statistics on short sales before deciding whether you’re willing to invest the time and energy into finding a short sale property.

Occasionally, home buyers and investors do purchase short sale homes at prices they are very happy with, so if you have the patience and do want to look at short sales homes, I will be there every step of the way, and do everything I can to help find the home and get your offer accepted, if you choose to work with me as your buyer’s agent.

Pre-Foreclosures - Notice of Default - Pros Only!
After a homeowner falls behind on mortgage payments, the lender may file a "Notice of Default". This starts the foreclosure clock ticking, and if the owner doesn't catch up the payments, the property will be sold at auction in about 5-6 months.

These homes may or may not be listed for sale on the MLS and investors often try to strike a deal directly with the homeowner before the home is listed to create a win/win situation. This method can be very time consuming and is mostly used only by full time real estate investors.

Trustee Sales - Pros Only!
About 4 months after the "Notice of Default" is filed, if the default hasn't been "cured" a "Notice of Trustee Sale" is filed. This list is sent out about once a week and contains basic information about the property, the owner, the lender, the time and place of auction etc...
These auctions are CASH ONLY, AS-IS SALES. In fact you have to show certified funds in the full amount before you can even bid. Because the minimum bid is at least the lien amount and in todays market, often more than the value of the property, most of these "Trustee Sales" do not get sold and become "Bank Owned Property".

Ready to make an offer?
Before making your offer, you’ll want to contact a REALTOR® that will represent your interest and find out as much as possible about the condition of the property and what their process is for receiving offers.  Since banks almost always sell REO properties “as is”, you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the price to offer. After you’ve made your offer, you can expect the bank to make a counter offer.  Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer.  Realize, you’ll be dealing with a process that probably involves multiple people at the bank, and they don’t work evenings or weekends.  It’s not unusual for the process of offers and counter offers to take weeks even a few months.