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We are interested in buying a forclosed home How do I get started? How do I look at these homes?Th

  • August 17 2009 - Sparks
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Ask for referrals from trusted friends or family and interview them to see if you are a fit for each other and can work together



The agent should be able to search foreclosures on the local listing service....schedule appts to view..and then work with you on making an offer on the right home for you
  • August 26 2010
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Along with foreclosed home buying opportunities, there are also threats and risks associated with it.  This seems to be a perfect time for people to purchase; however, you need to be aware of advantages and disadvantages of foreclosed homes to help you in the buying process.
Advantages

First of all, you'll get huge savings ahead.  When you buy foreclosed homes, the savings on the original price will be huge.  Usually, most properties are sold with 30% reduction and you could get a real bargain once you locate these quickly and win in the auction.

However, expect harsh competition, especially if the offers are good.

Another advantage would be the extensive research that went into the property for sale.  Although you can do your own research, there has already been plenty of research done on the property.  So before you purchase the property, you've got to seek out this research first.  Finally, there are high revenue opportunities connected to your investment – you can rent it for a reasonable rate or eventually sell the house for profit.  Sometimes, it could be a good decision to combine both; however, you need to inform your intentions to your tenants beforehand.
Disadvantages

Some of the downfalls that you should watch out for are maintenance status, alert level at auctions, and eviction of previous owners.  Maintenance status means the cost involved to repair the house.  You don't want to end up with a lower initial price but very high repair costs.  To avoid this pitfall, hire a professional inspector that will survey the property before you buy it.

Another disadvantage is to stay alert during the auction.  When it comes down to the bidding process, set a comfortable threshold and never go over it.  Typically, it's best to set it equal to the home value itself.  Remember that these types of auctions are very competitive and you'll have the tendency to go overboard with your bidding if you're not careful.

Furthermore, the most unpleasant thing that can happen once you buy a foreclosed home is evicting the current residents living in it.  Oftentimes, they would be uncooperative and would cause some trouble.  The eviction process may be a complicated and lengthy one.  Also, the residents may be given plenty of time to recover their home and if they did, you can't do anything about it.  Therefore, talk to the seller closely and inquire if there's already an eviction process for the existing residents before you buy the property.



Article from: http://www.openmarketrealty.com/blog/advantages-and-disadvantages-of-foreclosed-homes/

  • August 26 2010
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If you are financing the house the beast palce to start is to get a pre-approval letter from a bank or mortgage institution. When you subnit an offer on a foreclosured home the bank requires a pre-approval letter with your offer.

If you are paying cash go to your bank and get a verification of funds Showing that you have the money in the bank, because this will be required if you are submitting a cash offer.

Once you have this out of the way contact a Realtor to show you properties your interested in.
  • August 18 2009
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It may be different in Oregon, but here the listing agent's of reo properties never work with buyer's or give them a time of day many times they have someone in house they send the buyer's too so they can take a refferal fee on the commisison. The bank actually prohibits the listing agent from bringing the buyer. Listing agents work for the seller, so saving the few thousand that you think you might save, may cost you a ton in legal fee's or heart ache later.
  • August 18 2009
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Also keep an eye on your local sheriff's office. Many times tax sales don't make it into the foreclosure databases.
  • August 18 2009
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Contact a realtor who not only subscribes to the various foreclosure listing sites, but also is the listing agent for many of them. A buyer's agent will not have the same access to REO homes as a REO listing agent. REO lisitng agents also keep up on things enough to know when something should be hitting the market giving you much earlier notification than a buyer's agent could ever provide. In addition, many listing agents are arranging what is called "variable commissions" with the banks. This means a typical commission split of 6% would be reduced to say 3% or 4% if the listing agent also brings the buyer. A simple math calculation easily shows you how having a buyer's agent could very well cost you more money than using the listing agent. By having your own very special buyer's agent, you could actually offer thousands more than somebody else and the bank would take the lower offer because it is actually better for them thanks to the commission structure.
  • August 18 2009
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I would get started with a realtor. Realtors are paid by the seller's of the home you choose, so you really should get a buyer's agent to protect your interests and advise you every step of the way. Realty Trac provides all homes foreclosed but that doesn't mean they are listed yet and you can spin your wheels a lot on these websites trying to find information or the price or who it's listed through. I'm not a fan. Any licensed realtor can look up on their multiple listing system and do a search for bank owned homes that are available for sale.
Realtors have access to all the bank owned homes that are listed for sale currently. Look up a few in your area online, see which ones are familar with bank owned and or short sales homes because you want an experienced agent in this field, not someone trying to learn about it with you as their first victem.
Not all foreclosed homes and short sales are remarkable deals, keep this in mind. The public has this perception, but the listing agent does comparables of the home before they list the property for the bank. The comparables are the same as if you came to them to list your home. The reason why you see so many bank owned low priced is because the condition. Any home with a ton of work would be priced lower hence a "fixer" and not all if you invest the money into the home makes sense at the end of the day.
Many bank owned homes are cash or conventional financing as well which can eliminate some potential buyers due to the conditions of the homes, FHA and Va guidelines often don't lend on them. Some issues could be flooring, dry rot etc.
Banks also can take a week to respond and let other offer's come in and then send out a notice of multiple offers and make people compete. Who knows the "other" offers could have been lower than yours, so make up your mind on a price that is reasonable and stick to it. Remember you can't "game' a bank, they are real people with real #'s and if you low ball it unreasonably they might counter higher than they would of if you would have been reasonable from the begining.
  • August 17 2009
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I find that realtytrac.com has a nice list. Find an agent that subscribes to it and has successfully closed deals from it, too.
  • August 17 2009
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