good luck to you!
The Foreclosure process starts when a homeowner cannot pay the mortgage and ends when the home is resold.
The three stages of Foreclosure are: Pre-Foreclosure, Auction, and REO/Bank Owned.
Pre-Foreclosure is the time period a homeowner has to repay the delinquent amount of the mortgage.
If a homeowner does not pay the mortgage the home is auctioned
If the bids do not meet the reserve the lien holder (bank) reclaims the property and it becomes a Bank Owned REO.
It is a really good thing you want to invest in such a hot market. I am a local Realtor in Alhambra and I would really like to help you finding a good one. Bank owned properties need a cash offer or a lot of it as a downpayment (50%, 60% or more) in San Gabriel Valley market. It might work diferent in other cities with less cash and less competition, but in Alhambra, you have to be ready for the competition. There are some websites that let you know about some foreclosures in the area you are looking for, but not all of them.
It is truth that you need a "good negotiatior" but before to negotiate, Banks want to know how much "cash" you are offering, then the negotiation comes up. And as my colleagues told you, if you don' t have all the cash, go to a direct lender or mortgage broker for a pre-approval letter to be ready to put the offer.
Give me a call to explain you with details and if you prefer somebody who speaks Cantonese or Mandarin, my partner speaks both.
Maria Elena Piedra
Coldwell Banker George Realty
1611 S. Garfield Ave.,
Alhambra, CA 91801
First, if you are purchasing the house with a mortgage is to speak to a mortgage person either at your bank or a recomendation from a friend or realtor. This way you will know how much house you will be able to afford.
Second seek out a Realtor that has done work with foreclosures and is a good negotiator. You can might be able to find one on Trulia. If not you can always go to a local real estate company, but be sure to ask questions. You want someone that will work with you and assist you every step of the way. Sign a "Agency Agreement" with that agent so they can represent you as a "Buyers" Agent. If you do not they will be representing the Seller
Third, the price listed can be negotiated but I will tell you that if there is more then one offer you may have to pay more then the listed price. As always the real good ones go fast.
Finally, you can go to specific REO web sites like Equator to look for foreclosures or have the Realtor you are working with do a search in the MLS. The information will be current.
Buying a bank owned home involves additional risks. It is a fast moving transaction with additional factors due to the banks addendums and the fact that the bank is exempt from certain disclosures that are extremely important.
The links below will send you to a blog post that discusses a few of the things to be aware of when purchasing a bank owned property. There are great deals to be had but there are also risks involved.
Your best bet is to find a good buyers agent who can help guide you
through the process and show you the available listings & can help you
with the purchase. Generally the list price is a good indication of what it
will sell for - it will usually sell for the fair market value. Good luck - contact
me if you have any questions.
Keller Williams Realty
#1 Buyers Agent KW LA Region