Home Buying in Rochester>Question Details

Buyer, Home Buyer in Brighton, MI

How do I find out about foreclosures before they hit the MLS? As far as possibly getting a house at auction.

Asked by Buyer, Brighton, MI Thu Mar 11, 2010

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One more thing, short sales are akin to pre-foreclosures. The seller is distressed in some way and the bank is being asked to take less than is owed. The home has typically been better maintained than a foreclosure. There may be a waiting process involved but you usually get a very good deal in return for you wait.
0 votes Thank Flag Link Mon Mar 29, 2010
Maureen Fran…, Real Estate Pro in Birmingham, MI
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My husband and I have purchased property before it hit the MLS, but I don't think it is something most people need to worry about, especially in a market like we have today. We were doing this when the market was much stronger and there were very few foreclosures hitting the market. Now there is enough inventory available through the MLS that we do not have to do that kind of digging.

As others have told you, there are better ways to buy.

Good luck in your search!
0 votes Thank Flag Link Mon Mar 29, 2010
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
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I actually do extensive research in certain web sites for my clients. Some of these homes are pre-foreclosures as well as homes that have not hit the MLS. It takes a lot of time and effort to find them, but there out there. You would have to deal direct with an agent that knows the systems and how to negotiate with the banks. I have lived in Rochester for 19 years, there are quite a few homes out there. If you want action and to get in on the great deals, you need to be ready to make your move. I personally have only done a few autions- I don't really like them as you really need to know how the bid is taking place.. Then you pay a Buyer's premium, could be like 10% over and above the offer, you don't know how many liens are on the property if you don't have time to research it.. you could end up paying a lot more in the end. If you end up buying into on a Short Sale,, could be good, but the process is pretty lengthy. It all depends on the bank. Sometimes they take anywhere from 25 to 4 days and some banks just sit on the deals and let the offers fall apart. As an agent you need to be on top of the bank almost everyday.. As agents we work twice as hard, and it is all negotiations, protecting our clients, and staying on top of what is really going on out there. Yes, in most cases if your going to win in on your bid, I see a lot of over asking prices... It all depends.. I as well believe that if you can make the short sale happen you can end up with a great deal as well, that way your not into a bidding war with everyone else.. as long as the seller is cooperative..
0 votes Thank Flag Link Tue Mar 16, 2010
Not to mention the bank that owns the note will most likely be present to bid on the home and protect their interests. They would most likely bid up to the amount owed or close to it so they don't get shafted, and in most cases if the home were worth what is owed on it then the current owners would sell it as opposed to letting it go back to the bank and trashing their credit.

But the good thing is when all is said and done and the home has been foreclosed on it will be released for sale to the general public and you should get a great deal on it!
0 votes Thank Flag Link Fri Mar 12, 2010
Thanks Dan. I read the answer to the other question. Now I get it. I wanted to make sure I wasn't missing out while investors or other normal people like myself where buying great homes at auction, leaving only the crappy ones to the MLS.
0 votes Thank Flag Link Thu Mar 11, 2010
A similar question was asked below. Please look.
http://www.trulia.com/voices/Home_Buying/What_should_first_h…

Learning is never a bad idea. I wondered about the same thing. Once I learned more I would not do it without doing a lot more homework on a given property than I would have a clue how to do.
0 votes Thank Flag Link Thu Mar 11, 2010
Thanks. I'll stick with the MLS. I definitely don't want to chance having the house damaged and this process sounds too risky for my taste. Thanks!
0 votes Thank Flag Link Thu Mar 11, 2010
Hello Buyer before I explain where I would like to explain how this is done. If you are referring to sheriff sale when you buy the home you must pay all cash and bid over the banks opening bid. But more important than that the seller is given a 6 month redemption period. If they can come up with the money to redeem the home back you would receive all your money back plus interest but would not get the home. If they decide to stay the full 6 months there is no telling what condition the home would be in when you get it back. One other thing I would like to point out is right now many homeowners in Macomb & Oakland owe way more than the market, so the opening bid may not be market value.

The banks know that by bringing it to the market place they will have more than one buyer making an offer. In fact, many banks will place the home on the market and ask for final and best which basically means they stack offers to ensure they get top dollar.

Now your orginial ? the best way to get homes at sheriff sale is to watch the legal news. Best of luck
0 votes Thank Flag Link Thu Mar 11, 2010
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