Foreclosure in 91801>Question Details

Wei Li, Other/Just Looking in Alhambra, CA

if i want to buy a foreclosure house, how i start everything?

Asked by Wei Li, Alhambra, CA Wed Aug 18, 2010

I saw a house in Alhambra is foreclosure, I want to know first do the price will be the selling price and how do i start to buy it

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John Abshire’s answer
The best way to start the process is to contact a local Realtor who knows the market and has buyer agency experience. Of course you should go ahead and speak to a lender to get pre approved for the mortgage unless you are going to be a cash buyer. Good luck!
Web Reference:
0 votes Thank Flag Link Thu Aug 19, 2010
First thing to do is get a pre-approval from a good mortgage broker, so you will know what you can afford & how much it is going to cost you each month. You will need a letter from them when submitting an offer anyway.
good luck to you!
Web Reference:
0 votes Thank Flag Link Thu Aug 19, 2010
Thank you for your question about buying a foreclosure in Alhambra, CA. Before you make an offer on a foreclosure you should have some background on the process and a good local agent.

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.
0 votes Thank Flag Link Thu Aug 19, 2010
Hi Wei!
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
Cell (213)434-9900
Coldwell Banker George Realty
1611 S. Garfield Ave.,
Alhambra, CA 91801
0 votes Thank Flag Link Wed Aug 18, 2010
Contact a Realtor in your area who specializes in foreclosures.
0 votes Thank Flag Link Wed Aug 18, 2010
Don Tepper, Real Estate Pro in Burke, VA
Hi Wei, I would suggest....

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.

Good luck
0 votes Thank Flag Link Wed Aug 18, 2010
The first move is to find a realtor in the area to work with. They will be able to tell you what the home will likely sell for and get an offer to the lender. I also suggest getting your finances in order. If you are not going to pay cash for the home then get pre-approved for the loan. If the home is a good deal you will want to move quickly so wasting time finding a loan agent and then getting the approval may cost you the home.

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.……

Best Regards,

Eric Soderlund
Web Reference:
0 votes Thank Flag Link Wed Aug 18, 2010
Hi Wei,

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.

John Barry
Coldwell Banker
0 votes Thank Flag Link Wed Aug 18, 2010
If the house is a foreclosure listing, it would be listed on the MLS. You can check with a real estate agent to get you the listing information. From there, a foreclosure sale acts much like a regular standard sale, except the bank is the seller and there are some minor differences and often a little less flexibility on certain terms and negotiating. If you would like to learn a bit more about how it works, or get some information on the property, feel free to contact me at any time - I'd be happy to help you out.

Richard Schulman
Keller Williams Realty
#1 Buyers Agent KW LA Region
(310) 482-0173
0 votes Thank Flag Link Wed Aug 18, 2010
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