Home Buying in 80249>Question Details

Senevi, Home Buyer in Denver, CO

Hi, I like to know how to buy a forecloser properties. Your experties will be appreciated verymuch...senevi

Asked by Senevi, Denver, CO Sun Nov 8, 2009

I am planing to buy a house in Denver , co

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7
The best way is to work with a buyer's agent who will assist you in finding the homes and making the offers. You can also buy them at auction, but I have no advice on that procedure.
1 vote Thank Flag Link Sun Nov 8, 2009
All good answers below.

You can get these properties from many sources:
1. MLS listing of a Lender Owned or Real Estate Owned Property, this is pretty much a normal buyer transaction
2. Get a REO from a bank auction such as REDC (most are on MLS)
3. Buy at the county weekly foreclosure auction (Need cash, no inspection, deed could be clouded), you should get a specialist and/or specialized training and tools to do this right. Let me know if you want to pursue this path.
4. Buy a "distressed" property in foreclosure that is called a short sale. It will be anything but short, but deals can be had for the patient.
5. Another way to buy is from a wholesaler who has distressed properties and all of the above fit into that category. This is also not for the faint of heart.

Use a realtor that is SFR, REOS or CDPE credentialed. It can cost you nothing, and can help you stay out of trouble if you stick to their advice. Be prepared to have to do some fixes that you would normally have the seller do in a normal transaction.
Web Reference: http://www.georgelewman.com
0 votes Thank Flag Link Thu Oct 7, 2010
An experienced real estate agent with experience working with the banks is your best bet. Banks have unique and strange ways of doing things when it comes to buying their forclosed properties. You can search for foreclosed properties by going to our website (linked below) and going to the home search page. You will need to register to get access to the advanced search features where foreclosed properties are. Once you get to the advanced home search page, scroll down and in Advanced Features, find "lender owned" and add it to the search.

We have experienced buyers agents who can help you with this. Just call or email me if we can help.

Good hunting!

Marianne Bandy
The Bandy Team
RE/MAX Professionals - Denver, CO
"From Our Heart to Your Home"

303-746-7799 cell
http://www.BandyHomes.com
Web Reference: http://www.BandyHomes.com
0 votes Thank Flag Link Thu May 13, 2010
Before becoming a real estate agent I have been a fix and flipper for the past decade. I have bought HUD homes, from trustee auctions, bank owned and directly from the MLS. Good homes don't last a day on the market so my approach is to have my financing set up, quickly check out the property and the comps, then if it looks good, make a full price offer. The rule of thumb for fix and flippers is that only one in ten homes that show up from the above named four sources are worth placing an offer on. Of that ten percent, expect to land one. Therefore, you have a 1% chance of getting the house you want. You need a good agent that understands how and what to buy in a fixer-upper and then can advise you on what renovation work should be done (and idealy has the resources in subcontractors who can do those tasks you can't do yourself).
0 votes Thank Flag Link Wed May 12, 2010
Hell Senevi
The answer that Grace gave you is "spot on." Work with a realtor who has had short sale and reo experience. We'd love to help you to find your dream home. Certainly with the extension of the tax credit and the fact that some existing homeowners qualify for a tax credit, makes this an ideal time to buy. Contact us if you're not working with a realtor yet! http://www.swanrealtorgroup.com
0 votes Thank Flag Link Sun Nov 8, 2009
Senevi

Foreclosure properties are listed on the mls just like all other homes, or your can buy them at the foreclosure auction. The foreclosure auction takes lots of study and patience on your part and doesn't always pan out the way you think.

The best way to buy a foreclosure is to watch everyday what is coming on the market in the area you like. These properties usually have multiple offers on them very quickly, so you need to be the first to get your offer in.

The best buyer for a bank is someone who is going to purchase the home as their principle residence and has lots of money to use as a down payment. The 2nd best buyer is an Investor who has cash. FHA buyers are the next category, and lastly investors who do not have cash.

These properties typically need some work to be done to them. What that work is varies greatly, some only need cosmetic work, and others need complete remodels. Banks can also take there time answering your offer because they don't work like a typical seller. So buying bank property takes more patience on a buyers part. Its not as bad as buying a short sale but can still be a frustrating process.

If you need more help looking into the whole process let me know and I'd be glad to walk you through it.

Take care,

Daniel Herron
720-323-9178
danielherron@kw.com
Web Reference: http://www.HerronsHomes.com
0 votes Thank Flag Link Sun Nov 8, 2009
Hello Senevi and thanks for your post.

With the exception of slightly more "hoop jumping" on the part of the buyer, buying a foreclosure or "bank owned" property is not much different than purchasing a home from a private seller. The only real difference is the wording and requirements within the purchase contract's "Addendum" often attached by the bank. Typically, however, foreclosure transactions are often "as is" (meaning the bank expects you to accept the home in its current condition without their assistance in repairs), made only to prequalified buyers (often the buyer is required to prequalify with a specific lender) , not available to FHA purchasers, and subject to specific time-tables after acceptance of the purchase agreement (for example, many banks want all contingencies removed in 7 days after acceptance of the purchase agreement).

While many may encourage you to enter the real estate market without a Realtor, I would certainly caution against it especially in purchasing short-sale or REO (bank owned) properties. Working with a Realtor who possesses foreclosure transaction experience will give you the best chance to "package" an offer that is acceptable to the bank, while also avoiding the pitfalls that can trigger monetary penalty clauses or even jeopardize your earnest money deposit.

For more information about specific details of foreclosure home transactions in your neighborhood, contact a qualified Realtor with expertise in foreclosure home sales and purchases. Good luck!!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
0 votes Thank Flag Link Sun Nov 8, 2009
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