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Answers (27)
- Josh Skinner, "Josh Skinner"
- Contributions:8
Everyone agrees that one thing you dont want to buy is Short Sale. bank owned is the nicest not only because its the easiest but also because often to they have there own in house special loan programs with great rates and easy qualifiers. Auctions are great if you have cash and dont need it to renivate for the flip
- Don "Buddy" Larue, "Don Buddy LaRue"
- Contributions:4
The easiest route would be the bank owned property offered through sale in the MLS. Fewer headaches, quick response time (in comparison to short sales), and you're not up against a room full of other buyers with some making offers just to drive the price up.
- Pam Bass, "pbassrealtor"
- Contributions:4
My opinion is bank owned. It is the easiest to close and is still usually a good deal. Short sales can take 3 - 6 months just to receive an answer to your offer and the majority do not go through. At an auction the owner still has time in which they can pay the taxes and get the property back so you have a waiting period. Hope this helps.
- Trump Junior
- Contributions:82
Since everyone is saying "bank owned" which I agree is the easiest and safest, I am going to put in my 2 cents for "at auction". After looking at what was available on the market at my price range, I determined that they were all fixer uppers anyways. So no inspection was not really a problem. I got a better price than I would have at the time than from buying bank owned in my opinion. I did introduce myself to the neighbors on either side of the house I was bidding on beforehand and found that they seemed decent and that the home was unoccupied and was in good condition according to them. So, I felt that their word was as good for me as any inspection. Also I used a service that does a cursory look-up of liens and so forth so I suspected the title would be OK and it was. The only issue - that I learned about after I plunked down $38,000 in cash at the auction was that if I was unable to close and if the bank was unable to sell the house subsequently for the price I bid at or better, I would lose up to all of my cash deposit. The bank did work with me somewhat by giving me extra time that I needed to close and they paid up the outstanding water bill at closing which I though was real nice, but I guess they were required to. There were lots of very experienced people at the auction. They all had different reasons for being there. I would definitely spend the time to go to a courthouse auction a couple times and do a little socializing if possible at least to educate yourself about the option. Of course, in a market where everyone is NOT upside down, the auction is the place to be definitely and the bank-owned not so much because in those market conditions, the bank-owned properties are the ones that got passed over at the auction because of problems.
- Beth Grotelueschen, "bethghomes"
- Contributions:765
I say between those 3 bank owned as well. If you have quite a bit of time & are not tied to the outcome (meaning you're ok if you lose the house), then short sales are a good option as well. You have to make sure that the negotiator of the short sale has a good track record & that they get the short sales approved for close to their asking price. Some agents put short sales on the market at a price that the bank will never accept & it turns into a HUGE waste of time for everyone. Typically, auctions require all cash which not too many buyers are in position to do, but an option for investors. Still, investors end up competing at the auctions sometimes & don't get the best pricing. Bank Owned is usually the least hassle & best fits most of the criteria that the majority of buyers have.
I would also not limit myself to bank owned homes- sometimes you get the best deals on estate sales or with people that are very motivated to move--- always keep your options open.
I would also not limit myself to bank owned homes- sometimes you get the best deals on estate sales or with people that are very motivated to move--- always keep your options open.
- Mindy Garner, "MindyGarner"
- Contributions:10
With a bank-owned home, sometimes called REO property, you have an actual person at the bank who is acting as seller, and responding to offers in a reasonable period of time. You also have a discounted property, that you can inspect for any issues. You get the ease of an almost normal sale, but you still may get a better price. Sometimes you also get a dscounted loan program from the seller bank, too! So I'd go with bank-owned if I were looking only for a good buy.
However, if you are looking for the best property you can find, I'd look at everything, and then try to make the best deal I could. Why limit yourself to just distressed properties, when most properties are good buys right now? If you find that a bank-owned house is the best deal, and that if fits your needs, snap it up! But you might be surprised to find that the best deal is from a seller who has moved out of state, or has to sell for personal reasons. Be open to find the best property for your needs!
However, if you are looking for the best property you can find, I'd look at everything, and then try to make the best deal I could. Why limit yourself to just distressed properties, when most properties are good buys right now? If you find that a bank-owned house is the best deal, and that if fits your needs, snap it up! But you might be surprised to find that the best deal is from a seller who has moved out of state, or has to sell for personal reasons. Be open to find the best property for your needs!
- KT Team Coldwell Banker, "KT Team of Coldwell"
- Contributions:3
Go with a bank owned property, all things being equal. You get a quick answer and there is usually a pretty deep discount on the price.
Best Regards.
Best Regards.
the one I can get the lowest price on...
- Rich Lee, "Real Estate Geek"
- Contributions:99
Ryan Halset,
Bank Owned properties tend to have the lowest prices. I've examined a couple of markets around the Boston area and took the average sale price to confirm that fact. For a short sale, you have the unknown waiting time for a bank approval. At foreclosure auctions, banks tend to bid the amount due on the note. Houses that are foreclosed on tend to be worth less than the amount due.
For those reasons, I would shop bank owned properties.
Cheers,
Rich
Bank Owned properties tend to have the lowest prices. I've examined a couple of markets around the Boston area and took the average sale price to confirm that fact. For a short sale, you have the unknown waiting time for a bank approval. At foreclosure auctions, banks tend to bid the amount due on the note. Houses that are foreclosed on tend to be worth less than the amount due.
For those reasons, I would shop bank owned properties.
Cheers,
Rich
- Carol Carpenter, "carolcarp"
- Contributions:8
Definitely bank owned. At least you will know within 24-72 hours whether or not your offer has been accepted. With a short sale, it takes considerably longer.
- Tyler Rygmyr, "Tyler Rygmyr"
- Contributions:205
Bank owned because typically they are the easiest to deal with. Short sales are pretty tricky and you do not really know if you will get the property and may waste a lot of time/energy. Bank owned has already been through the foreclosure process and now they own it and want it off their books. GO BANK OWNED.
- Jewelia
- Contributions:6
I now will be paying attention to "Bank Owned" properties. I am new at this investment thing but am learning..
- Celia Butler Home Loan Diva, "At Academy Mortgage"
- Contributions:359
That for me covers too broad of an area. I think it just depends on too many factors on a very personal buyer's level to pick. Hope you'll agree. As an example --- how soon do you need a house? can you live with repairs issue? what type of loan are you getting? investment -vs- primary home? etc etc...
Sincerely,
Celia
Sincerely,
Celia
- David & Maria-Nella Landman, "PrimeOne Realty"
- Contributions:101
Short Sale is the best option NOT BANK OWNED, foreclosure auctions are the worst. Banks are trying to avoid expenses and the auction is an expense so if you can get a Short Sale approved in your favor that will mean that you are getting the best price from the lien holder in order them to release the deed of trust, you need to buy the short sale with a good title company and hae an insured General Warranty Deed title from that Title co, if you go to auction, you will need to take care of title yourself and be aware of any cloud or lien that may still stay on title after the PT or Court Sale and when you buy a Bank Owned property the price will not be the lowest since banks will try to speculate with the property in order to get a better price since all the legal process has concluded they are no longer in any hurry to get it sold. The only ocasions I've seen good deals with REO's ( Bank Owned) is when there was a connection between the Reo Listing agent and the "buyer" that was a buddy or bussines associate of the listing agent, besides that you will need to compete with an open market with no hurryes
- Connie Wildasinn, "Connie Wildasin"
- Contributions:1178
Bank owned all day... you get good pricing, still get contigencies and have only one person(entity) to get responce from...
- Tonya Brobeck, "Tonya Brobeck"
- Contributions:637
Bank owned by far!!! Many of the banks are making huge concessions following inspections if repairs or replacement items are needed. Even though they are usually marketed "as is". A lot of the time, the bank doesn't know there is a huge issue that can affect price such as: Well not working, septic compromised, etc.
- SoCal_Engr
- Contributions:5661
@ Steve...
"98 per cent of all loans from 2000 to 2007 are now fraudulent which means the sell of these homes from those lenders are fraudulent as well."
Since I bought in 2004, that should mean that I'm very likely in the "fraudulent loan" category. Please tell me how to verify and what the actions are to be taken.
"98 per cent of all loans from 2000 to 2007 are now fraudulent which means the sell of these homes from those lenders are fraudulent as well."
Since I bought in 2004, that should mean that I'm very likely in the "fraudulent loan" category. Please tell me how to verify and what the actions are to be taken.
- Dan, "the_country_hick"
- Contributions:4691
The courthouse steps auction could end up selling you a worthless piece of paper that costs money and is worth zero. You do not know what liens are against the property.
A short sale can take around 1 year to get a reply on.
A foreclosure may not be legally done.
Can I just pass on all 3 as they all are problematic?
A short sale can take around 1 year to get a reply on.
A foreclosure may not be legally done.
Can I just pass on all 3 as they all are problematic?
- Jackie Griffin, "Jackie Griffin"
- Contributions:591
Bank Foreclosures are the easiest, but will always try the others if the property fits the buyers needs and wants.
- Steve Neuenschwander, "SteveNeuen"
- Contributions:281
Right now - today. Unless the lender who held these notes can prove otherwise, you are purchasing a home under fraud as well as a home with a clouded title. 98 per cent of all loans from 2000 to 2007 are now fraudulent which means the sell of these homes from those lenders are fraudulent as well. Most of these agents on here are going to tell you I am full of it. But, I will remind them that this fraud is a federal offense that carries 10 to 20 year in a federal prison. As a buyer, even unaware of the situation, you also become a part of that fraud. This is not a great time for real estate agents because they are trying to make an honest income and want to be honest business brokers with their clients. They have been led blind by law offices acting as negotiators trying to score big bucks at the expense of everyone else. MBS is one of the major participants in this fraud. It is a worse time for buyers because you could invest in these type houses and end up losing them later. Larry, sorry, I know you are an honorable agent. These liens are not cleaned up because the ones cleaning them have no legal authority to do so. The 9th Circuit Courts back that up.
- Larry Tollen, "Larry Tollen"
- Contributions:384
Hands down bank owned. Short sales are a complete waste of time and no one should think about them. 80 plus % will end up as foreclosures before the short sale is approved.
Foreclosure auctions are inherently risky, the buyer could be inheriting numerous tax liens etc.
Bank sales the liens have been cleared up and other than having to assume the property "as-is" it's a clean and simple transaction.
- Lauren Cassill, "laurencassill"
- Contributions:59
I absolutely agree. Bank owned properties present the best opportunity to know exactly what you are buying and are the most likely by far to close in a timely manner.
- Rob Graham, "Rob Graham"
- Contributions:171
Bank owned, every day and twice on Sunday. No comparison at all. In many cases it is no more complicated then a traditional arms length transaction with a private seller. Short sales can take months longer, are far more complicated, are extrememly frustrating for all involved and have a horrible rate for actually closing. Auctions have lots of rules and typically require a lot more cash then buyers have to put down. They are irregular and there is far less inventory. Also the condition of auction homes can be questionalble.
Bank owend all the way.
Bank owend all the way.
- Ryan Halset, "RyanHalset"
- Contributions:730
I tend to lean towards bank-owned as well.
One big reason: I like the idea of being able toinspect the home (unlike most foreclosure auction sales). Call me crazy - but I like to know what I'm buying :-)
However, I can certainly find situations where the other options would work nicely as well...
One big reason: I like the idea of being able toinspect the home (unlike most foreclosure auction sales). Call me crazy - but I like to know what I'm buying :-)
However, I can certainly find situations where the other options would work nicely as well...
- Mary Devino, "Mary_Devino"
- Contributions:37
Yes, definately bank owned! Fast turn around sometimes within hours to hear back on an offer. Once they sell it, they put another one of their non-producing assets on the market.
- paulbalzotti
- Contributions:355
Definitely bank owned. With auctions and shortsales, you are waiting for a 3rd party approval of the sale. With bank owned, you can come to terms immediately and move forward.
- Laurie Way, "Laurie Way"
- Contributions:86
This is a GREAT question and one I would love to go into great detail as to why I feel the way I do but I've got to run to an appointment. Short answer: Bank Owned. I'll try to get back around to this one later.
If you had to buy: Bank Owned, Short Sale, or at Foreclosure Auction...which route would you take?
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