Profile picture for ladybug771230

Is there any way I can buy a foreclosed home from the bank before it is listed for sale?

We were buying a home in November and then the seller backed out.  We really loved the home and the neighborhood.  Now we just saw on the pre-market homes that another home in the same neighborhood was just foreclosed on in December.  It is the same style, layout and size of the one we lost.  We are very interested in the home, but we are wondering, do we have to wait for it to be listed?  Can we contact the bank with an offer before they list it? 
  • January 25 2013 - Garden City
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Answers (5)

Profile picture for ladybug771230
The home has already gone up for auction and is owned by a bank.  This happened in October.  The problem is that in our area there is very little inventory and the banks are often letting the homes sit empty for a year before listing them.  Then they list them and there is a bidding war with sometimes more than 20 offers.  The last home we bid on was listed for $89900.  We bid $22000 over and lost.  This is the 5th home we have lost.  We are just trying to figure out how to get a home.
  • January 26 2013
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Profile picture for Outer Banks N C
NO! The bank can't sell you a home since they don't own it! The owner still is the owner and the only one that can sell it until the foreclosure is over and the bank buys it at auction -- THEN they own it and can sell it but not before.

tim
  • January 26 2013
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In Michigan there is a six month redemption period from the date of the Sheriff sale/foreclosure. During the six months, the owner has an opportunity to satisfy the debit and redeem the house. Chances are the owner will not do that, but they may be open to a short sale. You might want to have your realtor contact the owners and ask if their bank would be receptive to a short sale.
  • January 25 2013
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We live in a different world these days regarding foreclosures.

Prior to 2005, banks would have a small portfolio of REO's (real estate owned / foreclosures) in a file drawer and they would auction them off, or sell direct or give to a Realtor.

Since 2005, there have been close to 5,000,000 distressed properties.   The banks are simply OVERWHELMED, and there is no one that has the authority to release the property.  It simply MUST go thru the foreclosure mill, wherein it is given to a local Realtor to list (after necessary repairs, if any are taken care of).

For full details on buying an REO:  http://www.idahoidahoidaho.com/buying-a-foreclosure/




  • January 25 2013
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Generally most banks will use a Realtor to provide them with a valuation of the home and then have the agent list the home. So often it's not possible to make an offer until the property has been put on the market.

If it's a small bank or credit union, you could ask them who they use to list their homes. Often smaller banks will use just one agent. If it's a larger bank, there's no telling what agent will be assigned the listing. Many banks use 3rd party sources to market foreclosures, which makes it even more difficult to reach out to them.

There is a couple of things you can do now to ensure that you will be notified when the property is listed.

1. Have your real estate agent set up an auto search for the home on the local MLS. This will generate an email to you when the property is 'active' on MLS.

2. Check back periodically at the house. Often the listing agent will put some sign or business card on the property so police, etc can alert them if there's an issue with the property prior to listing. You (or your agent) could then call and request that you be notified when the home is listed. Sometimes that works, and sometimes it doesn't.
  • January 25 2013
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