Foreclosure in Denver>Question Details

Eric Wu, Home Buyer in Russian Hill, San Fr...

What is the best way to purchase a foreclosure in Denver?

Asked by Eric Wu, Russian Hill, San Francisco, CA Mon Feb 6, 2012

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Eric Wu,

The best way is to contact an agent in Denver that works foreclosures and let him search, negotiate and write offers for you on foreclosures. The listing agent is not the best way to approach it. The listing agent works for the seller (Bank) and has a fiduciary duty to get the most for the home. He is paid to work for the distinct advantage of the bank. They often don't have the time or interest to work with you as a buyer. A Buyer's Agent works as your agent and does all the research, CMA's, etc. to see that you are getting the best deal possible and still be competitive in the purchase of the foreclosed home.

The best way is often to pay cash in Denver due to the low inventory of all homes, and foreclosures in particular. Banks don't want to wait for buyers with loans that may eventually not close. if you do have a loan, be proactive in getting pre-approved, a lender letter, and ready to move quickly when a home hits the market that meets your parameters.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
0 votes Thank Flag Link Sat Jan 12, 2013
You should contact the listing agent of the foreclosure, if that is not your question, then you should make an all cash offer. To find foreclosures and their agents go to foreclosuresus. com
0 votes Thank Flag Link Fri Jan 11, 2013
Hi Eric:

It usually is best to use an agent when buying a distressed property because such purchases can be considerably more complicated. However, you may be asking the wrong question. It is generally true that foreclosures can be less expensive, but this is not necessarily so. In fact I was looking at one today for a client. I believe the home is overpriced by a fair amount considering the amount of work that will be necessary to put the home back into a livable condition. What it sounds like you really want is a good deal on a home. If you are willing to do some upgrading, which is often the case with distressed properties, it is sometimes a good idea to look at homes with very motivated sellers and at homes that have been on the market for a long time. In the current market, these home sometimes are the real bargains, even when compared to distressed properties. Most buyers today want homes in very good shape. This can mean that some homes in mediocre condition or not updated to current standards can be had at very reasonable prices.

In other words, look for the best deals. Don't get hung up on words like "foreclosed" or "short sale."

Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
Days: 303.981.1617
Evenings: 303.473.1926
ron@rovtar.com
http://www.rovtar.com
0 votes Thank Flag Link Thu Feb 23, 2012
You need to start by looking for agents that have "proven" experience with short sales and REO's. I would say that the best deal to buy will be a short sale, unless you can go to the public auction at the public trustee's office every thursday and wait for the banks to bid. But when the property is a short sale that will be the time when the bank will accept the lesser amount for the property. If the property becomes an REO Banks will try to get more as an REO property. We specialize in Short Sales, we always carry 20 to 50 listings at a time. visit our website
at http://www.PrimeOneRealty.com to see our listings.
Thanks
0 votes Thank Flag Link Fri Feb 17, 2012
Hi Eric,
As an Investor, Renav.com is an excellent source of information for Colorado pre-foreclosures, foreclosures and tracking properties after they go through the public auction. You can sign up on their website for a monthly fee, or call me to discuss what you're looking to target and I'll set up a search for you. Also here is info on the Colorado foreclosure process as it's quite different than other States: http://www.foreclosurelaw.org/Colorado_Foreclosure_Law.htm
http://www.coloradoforeclosurehotline.org/
Let me know if you have any questions!
Jennifer Morrissette CDPE
303-204-6494
0 votes Thank Flag Link Tue Feb 7, 2012
Hi Eric Wu,

The best way is to find an agent who specializes in foreclosure properties in the city. I am a Certified Distressed Property Expert and would be honored to help you.

Thank you,

Ethan Besser
Certified Distressed Property Expert
Keller Williams DTC
303-856-8980
0 votes Thank Flag Link Mon Feb 6, 2012
Eric,

Along with the other answers, I would say be sure you find a Buyer Broker who is experienced with working through the foreclosure process and knows what they are talking about. Just looking at some of these answers reminds me that all agents are not created equal. Some types of foreclosures want owner occupants only and some want owner occs only for a certain period of time. Some foreclosures require that there be income restrictions as well as restrictions on investor purchasers. I know that many investors like to work with agents as Transaction Brokers and shop around until the right agent comes up with a deal. Not a good idea for several reasons. The foreclosure market is limited now in Denver; so it is vital that you get a good, experienced, proactive Buyer Broker to work in your behalf.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
0 votes Thank Flag Link Mon Feb 6, 2012
Purchasing a foreclosure can only be done at the Public Trustee Sale. I would never recommend that because you can not inspect the home. You can not get Title insurance to view ahead of time and there may be people living in the home after you become the owner and you have to go through the eviction process.
Buying a short sale is a home that is in the process of going thru foreclosure. It has not been sold at auction yet and you have the opportunity to have the agents negotiate with the bank a selling price. YOu as the buyer can have all the protection of a normal sale. The other option is waiting for the bank to purchase a foreclosed home at auction and then they will list the home as an REO(real estate owned) property in the MLS.
0 votes Thank Flag Link Mon Feb 6, 2012
Hi Eric:
Your questions has been answered pretty well, I just want to add my "find a good agent" that works with distressed properties (short sale, foreclosure, REO, etc.).
Best of luck
Chuck Strauss, SRES, SFR
Your Castle Real Estate
720-318-7598
denverhomeguru@gmail.com
0 votes Thank Flag Link Mon Feb 6, 2012
Ditto to Daniel's answer below: Get a good agent. Find someone that has experience working foreclosures. They're pretty straight forward, but have a few details outside of a traditional home purchase that the experience will be helpful with.
Web Reference: http://www.jonrroberts.com
0 votes Thank Flag Link Mon Feb 6, 2012
Eric

Get a really good agent who has experience with the agents who list them. Get a daily search setup that tracks price changes as well as new listing, because they go extremely fast.

If you are an owner occupant have strong financing in place and be ready to move quick and bid with multiple bidders. In some cases, like with fannie mae and HUD you'll have a period of time where investors can't bid.

If you are an investor, being able to waive inspections, can make all the difference, cash is king, although its not an end all.

Give me a call for me details

Daniel Herron
720 323 9178
Web Reference: http://www.herronshomes.com
0 votes Thank Flag Link Mon Feb 6, 2012
Whether buying a foreclosure or a resale home, you need to decide on how much you want to spend, where you want to live and when you would like to close. Each county in Colorado has a site for the county public trustee which provides up to the minute foreclosure information. Once you know how much and where you want to buy, you can go to the county public trustee and search for properties is the fastest and easiest way to find foreclosures.
0 votes Thank Flag Link Mon Feb 6, 2012
Work with a Buyer's Agent who is experienced in working with foreclosures in the area. The inventory is quite low at the moment, but these things change.
0 votes Thank Flag Link Mon Feb 6, 2012
Find a good Realtor who specializes in finding good foreclosure deals. Please call me, I'm happy to help.
Thanks,
J. David Lampe, Realtor
Your Castle Real Estate
303.550.8563
0 votes Thank Flag Link Mon Feb 6, 2012
"Best" depends on your circumstances. There are 3 times you can buy a foreclosure in Colorado. You can buy a foreclosure i) prior to the foreclosure auction, usually as a short sale, ii) at the foreclosure auction, or iii) after the foreclosure auction. If you buy a short sale, the process can take several months. If you buy at auction, you will need cash at the auction. If you wait until after the auction, you will be most likely be dealing with a bank or an investor. Unless you are an experienced real estate investor, you should seriously consider working with a buyer's agent or an attorney to help you determine what is best for you and to help you through the process. Good luck!
0 votes Thank Flag Link Mon Feb 6, 2012
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