Do Real Estate Agents not like to show buyers foreclosed properties?
A good real estate agent will take you to any house your interested in. However, a good real estate agent will also want to show you houses that fit you well. These two tactics may conflict with one another when it comes to foreclosures. 1. A foreclosure is likely to require alot more work than one not in foreclosure, making it unattractive during a walk through and possibly pulling time away from more attractive home. 2. A foreclosure may involve a lot of administrative work that could lengthen the time it takes to close the deal. 3. While a foreclosure may be less expensive than a non-foreclosure, you are probably not talking about huge differences in commission. Assume similar sized houses in similar neighborhoods One is foreclosure at $230,000. One is not at $260,000. The difference in commission might be $900, which is probably not enough to drive off a client who may be interested in foreclosures. If after you meet with your real estate agent and stress your desire to view some foreclosures and he/she still resists, you may want to consider a new
Do banks pay property tax on foreclosed properties they own?
Only if they want to keep the home LOL! Seriously banks typically foreclose on the home and then wait to record the foreclosed deed. That way the old owner is responsible for grass tickets or fines from the city. Once they are ready to sell it or sometimes not until they have a buyer and are ready to close do they record the deed. This is a trick they learned to lower cost during the recession. As far as taxes, typically they will pay them so that they don't risk losing the house or paying fines on taxes when they sell.Hope this helps!
How can you buy foreclosed properties before it's listed?
Tim Ballering's points are good. I would add that most people are not going to be successful buying foreclosed properties (aka bank owned or REO) prior to their being listed. Most servicer's have a process in place that will include listing the property for the sale and making sure it is sufficiently marketed to hopefully solicit the best offer.There are some clear exceptions. In some cases properties may be sold in bulk without first being listed - though most bulk pools are made up of properties that have been listed without success. In other cases they may go to auction instead of being listed - though in essence I think of this as just another form of listing.I have met a couple of people that we're able to circumvent the process and do deals directly with the bank - even circumventing a listing agent. In both cases they had STRONG relationships with senior folks within the servicer that could get their one-off offer approved. I'd think that would be tough in today's environment, but it may still happen. Certainly more likely at a small local bank like Tim Ballering mentioned.No question that the best way to find deals on REO properties is to develop relationships with "REO Brokers" - real estate agents that specialize in listing bank owned properties. If they are ethical they will keep you in the loop and let you know about properties and make sure your offer gets submitted and considered. If they are unethical, which I hope is rare, they may do more.Finally one recent development is the auctioning of bank owned homes that are still occupied. This is a cross between a trustee sale (where you pay cash, get no title insurance, no inspections and have to deal with occupants) and an REO sale. http://Auction.com recently added these to their mix.
I bought a property at a foreclosure. It is currently occupied. What do I need to do?
The most amicable/easiest thing to do would be to ask the occupant to vacate the property. In an ideal world, the occupant would leave. However, it may not be as simple as that and if they refuse the you will have to start legal proceedings of eviction. This process is best handled with an attorney to be sure that you comply with state laws surrounding evictions associated with properties in foreclosure. These types of situations can be incredibly emotional for the occupants and difficult for new owners to navigate. To simplify the process, you should definitely bring in professional help.If you are searching for an attorney to assist you, LawTrades is a terrific resource for foreclosure proceedings. The real estate lawyers on our legal marketplace are well-versed in real estate law and know how to handle these situations quickly and effectively. We offer transparent flat-fee pricing, free consults and satisfaction guarantee. Reach out to us today for more information.
Real estate foreclosure!?!?!?!?
There's no catch to buying forclosures.Prices are relatively cheap and it can be aver effective way to save yourself some serious cash.Just make sure to always have a full blown inspection before buying.You can burned bad by buying realestate that you havent fully checked out.Also you can start by going online and searching for defaults foreclosures pre-foreclosures and etc.Feel free to contact me I coud probably help you out some more I specialize in foreclosures and such.
What are foreclosed homes?
Answering for consumers located in the United States.When a homeowner fails to make the mortgage payments, the lender goes through a formal process to take back the collateral to recoup its losses.The foreclosure process varies state-by-state. Some states require a judicial foreclosure meaning the lender must go to court and stand before a judge. Other states foreclose non-judicially and can auction the home at a Trustee Sale.If no one bids on the home, the home is deeded back to the lender. The lender then hires a local, licensed real estate broker to list the home for sale on the open market, where the lender will have the best chance of obtaining the maximum price for the home, and the home is sold to the general public. The nickname for foreclosed homes is REOs, which stands for Real Estate Owned.Foreclosed homes for sale in the United States can be found on any local real estate website that advertises other homes for sale. In Seattle, I like to use Redfin’s search tool as they have, in my opinion, the absolute best consumer interface. You can select your search functions to include foreclosed homes, exclude foreclosed homes, search ONLY for foreclosed homes, and so forth.Wherever you’re located, in your city there is likely several real estate brokerages with online search tools and they will show all homes listed on the multiple listing service. Foreclosed homes are also listed on your local MLS along with other homes for sale.
What should I look for when buying a foreclosure?
Things you must do before buying a foreclosure:Do a title search - make sure that when you purchase a foreclosure that you are the only person who has any ownership claimCheck for liens - find out if there are any liens against the property because you will be responsible for paying themCheck for a second mortgage - you don’t want to be surprised by an extra mortgage that you will need to payKnow how good of a “bargain” you’re getting - foreclosures are sold “as is” and in many cases you will not be able to do a proper inspection. You may end up paying thousands of dollars repairing the property before it is fit to be lived in.It is also important to consider that there are different types of foreclosure properties and each type comes with its own advantages and disadvantages.The different types of Buying a foreclosure home are:Pre-foreclosureAuctionReal Estate Owned (REO), also called “bank owned”Pre-ForeclosureA pre-foreclosure is when you buy the home directly from the homeowner before the bank officially forecloses. This type of purchase does not require as much capital as other foreclosures.AuctionA foreclosure property will usually end up at an auction. Real estate auction practices vary by state but common practice is for the auction to be held on courthouse steps, in front of the foreclosed home, or at the county clerk’s office.Real Estate Owned (REO)Once a foreclosure has gone to auction and failed to sell, it becomes a Real Estate Owned, or bank-owned, property. Most homes do not sell at auction, most fail to even get any bids.An REO property is the least likely of the foreclosure properties to represent a bargain, but it is also the least risky.
Foreclosure Deficiency Judgments?
Lenders actually almost never sue homeowners after foreclosure for a deficiency judgment. They will have to hire local attorneys again to initiate the foreclosure. It will cost them money and take time to do this. Once they get a judgment against you, they will have to spend more time and resources trying to collect on it. But, you've just proven to them that you don't even have the money to make a mortgage payment. So there's little reason to believe you'd be able to pay tens of thousands of dollars in judgments. You're also essentially homeless now -- how would they know where to serve you with court paperwork and make sure you were served correctly? They wouldn't. It just costs too much after the bank has lost money on the loan, and takes too much time after the foreclosure, and there's little chance of homeowners ever paying the judgment. Banks almost never sue foreclosure victims for deficiency judgments, even when they are allowed to do so.