Foreclosure in 07601>Question Details

KB, Real Estate Pro in West Orange, NJ

buying bank owned property in Bergen county, NJ

Asked by KB, West Orange, NJ Wed Feb 22, 2012

i am looking to buy an investment property (2nd home) that will pay for itself (rent should cover mortgage / tax & insurance). i believe my best bet is to go with bank owned properties. (?)

I did see one such condo in Bergen county, NJ that is listed for around 170K. My question is how much low can i offer for this property? i understand there is no exact science around this.. but this is my first time and i have no clue and just need some guidance.

Another question is how can i find out how approx much rent i can get for this specific property? if i have this information. i can calculate if this property is really a good choice for me or not..

Any advice would be greatly appreciated..

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BEST ANSWER
Hello Kavita,

If you're looking in Hackensack, visit my sites at http://HackensackCondos.com or use my distressed property search tools at http://JerseyForeclosureScene.com

The questions you pose can only be answered correctly by looking at each property on a case-by-case basis.

Just a thought: I wouldn't automatically assume distressed properties are the way to go. There are many good deals in the market, not necessarily foreclosures. With values on the low end & rents on the rise, you're looking to invest in what is a very opportune time frame.

Best,
Brian
Web Reference: http://JerseyCondoScene.com
2 votes Thank Flag Link Wed Feb 22, 2012
Hello Kavita,
Your best option would be to work with an experienced real state agent in the area of Bergen County that interests you. The agent could show you recent comparable sales in the area as well as what similar rental properties are leasing for to give you an idea of home and rental pricing currently.
Usually, it does not cost you anything to work with a buyer's agent and they will work for you in your best interests; not the seller's.

Good luck to you!

Laura Feghali
Prudential Connecticut Realty
2 votes Thank Flag Link Wed Feb 22, 2012
The reo property you saw for $170,000, where did you see this property? Was it on the http://www.njmls.com webisite? If you are also purchasing as an investment property, keep in mind your down payment may have to be higher than what you anticipate putting down and/or the complex isn't FHA approved which will require a minimum 5% if owner occupied, depending on what mortgage company you work with.

Contact me so we can speak.
1 vote Thank Flag Link Wed Feb 22, 2012
Thanks every one for your responses.. every response has helped me and guided me.. i really really appreciate your takeing the time to respond..
1 vote Thank Flag Link Wed Feb 22, 2012
Well your numbers must make sense, sometimes forclosure is not the best deal, a forclosure may have many issues and they must be purchases as is then depending an all the work you have to put in and time passing by before you can rent it out.. You should hire a professional realtor familiar with the area to help you out with this. Many factors come to play a Realtor works in your best interest and is able to answer all your concerns or find solutions. From the number you gave me it is difficult to tell since certain buildings get in higher rent than others and buildings have different maintenace and taxes and all those numbers must cover all the costs and more if you are looking for an investment.
1 vote Thank Flag Link Wed Feb 22, 2012
My specialties are distressed properties and I also work exclusively in the Bergen Co area. With reo(foreclosed) properties, many banks want within 3% of list price to accept offers. Depending on these properties, they want quick closings you must also be prepared to close quickly.

Visit my site below and feel free to contact me if you have any additional questions.
1 vote Thank Flag Link Wed Feb 22, 2012
More information from you is necessary to answer this question. Are you buying all cash? If not, how much are you putting down? As far as what rent you can get, any realtor can easily search to see what recent rentals have leased for. The amount of rent you can expect depends on condition of the apartment, room sizes, etc.
1 vote Thank Flag Link Wed Feb 22, 2012
Bank owned properties are sold as is, so if anything is wrong with it and you find out after the fact, you are the one that will be paying. Now who told you that Bank properties were always the best deal on the market. Here is a little secret, they are not always a good deal. Look at all decent priced properties in the area, you may find a great deal on a resale and best of all, if on inspection you find problems you can get the owner to correct them for you before closing on the property.
0 votes Thank Flag Link Thu Mar 1, 2012
Kavita, be patient. Bergen Co prices will get worse for sellers and better for you. We are currently one of the top 5 best in the nation when it comes to foreclosures. NJ is a jurisdiction state. This means that the judges have the power to stop foreclosures. They have been doing so since '07. Many of the homes that have been foreclosed or should have been foreclosed on still haven't happened for many. To give you an example, just had a closing last week where the seller was in the home for 37 months w/o making a payment on the mortgage and we short sold the home successfully. Ave days on market from lis pendens til the actual foreclosure in NJ is now almost 1,100 days. I don't really see a bottom in the Bergen Co market till sometime in 2013-2014. Interest rates won't go up like many predict for another year or so. Reason being, it will cripple the market even more. Until we get thru the backlog of shadow inventory, now 2nd worse in nation, ny is now number one, we won't be able to see a base til we do. Any other questions, let me know and watch the emails I send you very carefully. Take care.
Web Reference: http://goo.gl/l9sgc
0 votes Thank Flag Link Thu Mar 1, 2012
Hi
Kavita,
It really depends where this property is located ? You need to find out the sold comparables around the property to find out the offer that you can put for this property to make it a win win situation and since it is a foreclosure and not a short sale,you should make the call fast cos in this market many looking for tis opportunity
Do call me if you have any more questions or just post another question,hope I helped you
Thanks

Pinal shah
Remax villa realty
Cell 201-952-7387
Circle of Excellence Award Winner 2011
0 votes Thank Flag Link Thu Mar 1, 2012
not sure if this info helps.. but this is a "Fannie Mae" owned home.. i did read several post where it was said that which bank owns the home is one of the crucial factors..

I did look at zillow.com, but zillow lists the home as a foreclosure and says there is a price cut of 10K..
0 votes Thank Flag Link Wed Feb 22, 2012
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