I see that you already have received many answers. So let me give you my 5 cents worth as well. I am a Realtor who is also an REO Agent. I have been an REO Realtor for the past 15 years with extensive experience on how Lenders and/or Asset Management Companies work. First of all no lender will talk directly to you, the buyer, they will refer you to the listing agent or tell you that you need to work with a realtor.
You need representation or your offer will not even be considered. I have represented many, many buyers on my own listings, that is called an intermediary. As such, the agent has to be completely neutral and cannot tell the seller what you are willing to pay nor can that agent tell you what the seller is willing to take. However, overall it is wise to work with a realtor that you feel comfortable with and who has your best interest at heart. In case this home does not work out for you, then this realtor can help you find another home. A realtor should be experienced in the process of REO properties in order to give you advise and the best representation possible. There is a lot of paperwork involved but overall, there is no emotion on the sellers side and it is not a scary process at all if your agent knows what they are doing.
Please feel free to contact me if you have any further questions or if I can be of help in any way at either 210 724-8529 or firstname.lastname@example.org.
Buying a REO home in San Antonio can be fun, or it can be a complete disaster.
First steps are:
1. Find yourself an experienced professional REALTORÂ® whom you can trust . Your agent can save you lots of time and mis-steps. It helps if they have done successful REO acquisitions previously. (We volunteer if you don't already have one.)
2. Always arrange financing before bidding. Most lenders will not even consider an offer on a bank-owned home without a pre-approval letter from a solid lender. Some require that you be pre-approved by them, (although they do not require that you actually borrow the money from them).
You can find information on how to place bids on http://bidselect.com/ or contact us at http://Tellellen.com.
Some REO properties are listed on MLS, some are not. Your agent can show you ANY property that is for sale, regardless of whose name is on the sign or advertisement. Generally, you will want to see the property and even have it inspected by a professional. Most Repo homes need significant repairs. The previous owner most likely could not afford to maintain it. Almost ALL REO properties are sold "AS-IS" - that is, no repairs. If you like the home, have your contractor check it out so you know the approximate cost of any repairs that will be needed. Calculate that into your offering price, INCLUDING the cost of holding the property while the repairs are being done. Those holding costs include taxes, interest, insurance, security, utilities, etc., Add a little profit for yourself for the aggravation.
So, the calculation goes like this:
1. Determine the "As Repaired Value", that is, what would it be worth if it were in above average condition for that neighborhood.
2. Subtract the cost of repairs needed to bring it to that condition.
3. Subtract the holding costs.
4. Subtract your reasonable profit.
The resulting number is the maximum bid you should submit.
Buying a REO can be very profitable, if you do it right. Like brain-surgery, it is not a good do-it-yourself project. Let us know if we can be of assistance.
Ellen and Doc Stephens, REALTORSÂ®
Was there a for sale sign in the yard? If not you can send the address where I can check to see if it's listed on our San Antonio Board of Realtors MLS, The only thing about calling the mortgage company direct is you won't be represented in this could cost you more in the long run.
Best to you,
Bobbi Terry, CRS
Coldwell Banker D'Ann Harper
18756 Stone Oak Pkwy
San Antonio, TX. 78258
You do not want to get either. The first thing you will want to do if you are considering moving into the Castle Hills and NW Military area is get yourself a good attorney! Because if you have a "lead-foot" like me, those Officers over in those nick-of-the-woods don't take so kindly to folks like us... :)
Ok, seriously, the speed traps are nasty, but to answer your question you really would need to sit down with an experienced Realtor first. Reason being, is that if that Realtor is truly great at what they do and has the results to prove it; they will cover the entire spectrum with you on buying an REO how and where to get the best financing and consultation on timing and of course minimizing your risks.
Castle Hills Forest is a really cool neighborhood and I certainly hope that if you found a great REO property or even on that is up for auction in January, you land yourself w/ a winner! :)
I have sold over 200 homes in the past ten years and many foreclosures. I also provide a buyer rebate of 1% of the purchase price to you upon closing. You can use this towards your closing costs or in a gift certificate. I am also an expert negotiator with the bank. Call me 7 days a week at (210) 792-8589 and see me at http://www.JoeCorwin.com. I hope to hear from you and would be happy to help.
you cam call the REO agent but typically they are very hard to get a hold of and handle a large number of properties at any given time and most REO agents I have met don't work with buyers (their loyalty and fiduciary duty lies with the seller aka the bank).
You will need an agent as most banks will not work direct with the consumer (I have never known of one willing to do so). I definitely recommend contacting an agent and getting pre-approved by a lender (your agent can help with this process).
I hope the property you have in mind is still available (see my most recent answers on Voices about REOs and availability on sites like Trulia).
I hope that helps answer your questions. Feel free to follow up with any you might still have.
Matt Stigliano, Realtor (r)
Call a lender to get pre-approved for a mortgage but why wouldn't you want someone working on your side to look out for your best interests in your purchase? I specialize in helping buyers and in distressed properties. Call me today!
Justin Werner, ABR, CDPE
Accredited Buyer Representative
Certified Distressed Property Expert