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Tips on foreclosure properties?

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Tips on foreclosure properties?

Old 09-25-12, 12:15 AM
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Tips on foreclosure properties?

Looking to buy a new house and every time I bring up one of these awesome deals to my realtor she always glazes over it and either doesn't answer e-mail or has some lame excuse. Is there no commission on these or something?
Old 09-25-12, 12:58 AM
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Re: Tips on foreclosure properties?

Might be because you need a lot more education on Foreclosures vs. a regular home for sale.
Old 09-25-12, 05:41 AM
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Re: Tips on foreclosure properties?

Most foreclosure properties are not the incredible deals the general public thinks they are, and most Realtors know that. That isn't to say there aren't some, but generally, from my experience, a person is far better off buying a regular resell. The process of buying a bank owned property is a huge pain in the ass. The bank sucks. In fact, when people want to look at a repo, I first give them "the talk." It is essentially, "If you decide to make an offer on this place, or any repo, you need to know that it is going to be a very rocky road. The bank will move very slowly, they will have all kinds of fine print that will allow them to do anything at any time, and they may just decide not to sell it, or it might get put into a pool option during the negotiation process. The point is, it will be an awful experience and I want you to know up front that it is not because of me. Just make sure you don't come away from this thinking I didn't do my job, this is just the way all bank deals go."

Most of them have a lot more hidden problems than people realize. You can do your inspections, but don't expect that they will negotiate any repairs. Also, because of condition of many of these, it is often nearly impossible to get loans on them other than an FHA 203(k) rehabilitation loan. And those are a huge pain in the ass.

Anyway, is there a particular reason you are looking at these? Also, it is entirely possible that your agent is just not very good. 70% (at minimum) of agents in this business suck.
Old 09-25-12, 11:13 AM
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Re: Tips on foreclosure properties?

Originally Posted by kvrdave View Post
Most foreclosure properties are not the incredible deals the general public thinks they are, and most Realtors know that. That isn't to say there aren't some, but generally, from my experience, a person is far better off buying a regular resell. The process of buying a bank owned property is a huge pain in the ass. The bank sucks. In fact, when people want to look at a repo, I first give them "the talk." It is essentially, "If you decide to make an offer on this place, or any repo, you need to know that it is going to be a very rocky road. The bank will move very slowly, they will have all kinds of fine print that will allow them to do anything at any time, and they may just decide not to sell it, or it might get put into a pool option during the negotiation process. The point is, it will be an awful experience and I want you to know up front that it is not because of me. Just make sure you don't come away from this thinking I didn't do my job, this is just the way all bank deals go."

.

You are 100% correct. I work at a bank and this are known as total "Shit Shows." Everything that gets started turns to shit.
Old 09-25-12, 02:38 PM
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Re: Tips on foreclosure properties?

Interesting advice, thank you. I did see a pretty good non-forclosure today that made her seem a bit better at her job.
Old 09-25-12, 10:58 PM
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Re: Tips on foreclosure properties?

I do mortgages and am dealing with two separate buyers buying a foreclosure. COMPLETE NIGHTMARE. One has been cleared to close since June but the bank who services the foreclosure (same bank i work for) cannot get the deed corrected. Seems like my bank is just servicing the foreclosure and another bank technically owns the property. This moron buyer decided to rent out his house before closing on new home. He has now been living in a hotel for about a month. Him and wife are all mad at me because I work for same bank even though it is two separate divisions, and again; another bank technically owns the property. This borrower is getting a great deal if he ever gets possession of the property (million dollar home he's getting for 550k).
Borrower #2 was suppose to close last week, but we got email from attorney stating deed was not ready. This is gonna be nightmare #2.
Old 09-26-12, 08:59 AM
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Re: Tips on foreclosure properties?

[Mitt Romney] Why don't you just pay in cash? [/Mitt Romney]
Old 09-26-12, 10:34 AM
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Re: Tips on foreclosure properties?

Originally Posted by tbone View Post
I do mortgages and am dealing with two separate buyers buying a foreclosure. COMPLETE NIGHTMARE. One has been cleared to close since June but the bank who services the foreclosure (same bank i work for) cannot get the deed corrected. Seems like my bank is just servicing the foreclosure and another bank technically owns the property. This moron buyer decided to rent out his house before closing on new home. He has now been living in a hotel for about a month. Him and wife are all mad at me because I work for same bank even though it is two separate divisions, and again; another bank technically owns the property. This borrower is getting a great deal if he ever gets possession of the property (million dollar home he's getting for 550k).
Borrower #2 was suppose to close last week, but we got email from attorney stating deed was not ready. This is gonna be nightmare #2.
Man, that happens so much. I do a lot of Fannie Mae properties, and the problem becomes that they have so much on their plate that they outsource a lot of the properties to other asset companies. Those companies then have to get up to speed on Fannie Mae regulations (and they constantly change), and then you come down to everything, and you are waiting for a freaking deed. BoA has been the worst at getting this done, but they are all bad about their deeds. I think it comes down to the fact that the bank with technical ownership doesn't have any real motivation to get it done for someone else. Especially when you are talking to an hourly wage employee....you are just making more work for them.

It sucks.
Old 09-26-12, 01:55 PM
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Re: Tips on foreclosure properties?

Originally Posted by pedagogue View Post
[Mitt Romney] Why don't you just pay in cash? [/Mitt Romney]
[Dave Ramsey] Why don't you just pay in cash? [/Dave Ramsey]
Old 09-26-12, 03:24 PM
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Re: Tips on foreclosure properties?

The house we bought was a Shortsale which is the Foreclosure lil brother and it took 2-3 months but it was worth it we got a house in the neighborhood we wanted for a price we kinda wanted, the bank made us raise our offer So I think with these type of sales its true you can get a good deal, but as others have said just know that it might take a while and sometimes not even come at all :S

Its a little like gambling and true you do need a realtor that either knows how to handle these type of transactions or they work with a lawyer that does
Old 09-26-12, 05:48 PM
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Re: Tips on foreclosure properties?

Originally Posted by Giantrobo View Post
[Dave Ramsey] Why don't you just pay in cash? [/Dave Ramsey]
Dave says home loans are the only kind of debt he is ok with. Also I married an asian so lots of beans and rice.
Old 09-26-12, 06:57 PM
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Re: Tips on foreclosure properties?

Originally Posted by nando820 View Post
The house we bought was a Shortsale which is the Foreclosure lil brother and it took 2-3 months but it was worth it we got a house in the neighborhood we wanted for a price we kinda wanted, the bank made us raise our offer So I think with these type of sales its true you can get a good deal, but as others have said just know that it might take a while and sometimes not even come at all :S

Its a little like gambling and true you do need a realtor that either knows how to handle these type of transactions or they work with a lawyer that does
A short sale in 2-3 months is really fantastic. But short sales, more than foreclosures, really have weird bank stuff. Raising the price is just one of the things they do. They are really bastards. All the paperwork commits you and says they can get out and do whatever the hell they want any time. Congrats. I have bought a short sale myself. I have sold several. They all suck. I bought one all cash, could have closed in a week, and it took3-4 months, and that isn't too bad compared to some. My last sale of one took 6 months.
Old 09-27-12, 07:42 PM
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Re: Tips on foreclosure properties?

Originally Posted by kvrdave View Post
Man, that happens so much. I do a lot of Fannie Mae properties, and the problem becomes that they have so much on their plate that they outsource a lot of the properties to other asset companies. Those companies then have to get up to speed on Fannie Mae regulations (and they constantly change), and then you come down to everything, and you are waiting for a freaking deed. BoA has been the worst at getting this done, but they are all bad about their deeds. I think it comes down to the fact that the bank with technical ownership doesn't have any real motivation to get it done for someone else. Especially when you are talking to an hourly wage employee....you are just making more work for them.

It sucks.
Yeah, I come across a lot of pissed off people from dealing with BofA. I just think if all these banks could get this shit figured out, it would really help the overall economy. I understand the need for government regulation so as not to repeat the craziness of early 2000s but some of these Fannie, Freddie, FHA , and VA oversight is crazy.

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