How easy is it, well something like looking for a needle in a haystack! It's tough, not without possibilty but tough,
I was successful in finding an REO in March of this year for a client in Ardenwood. We had to work quickly, and were positioned as the First offer of 11. Fortunately my clients understand the process since we had worked closely together since Januray and my clients bought the house.
It has been a great wind fall for them as well. Bought under market at $585,000 the current comps are now strong at $650,000. So perservance and timing paid off.
If you want to pursue a property which is headed to Foreclosure or Bank Owned there are some things I would suggest:
1. Work closely with a Realtor who is familiar with the area and familiar with REO (Bank Owned) properties.
2. Be prepared financially to commit to a property - have your Pre-Approval in hand and be clear what loan product you want to secure for financing.
3. Understand that compromise may be the deciding point, in other words: Be flexiable about the location of the house in a neighborhood, understand that you may have to do some repairs to restore the house - like carpeting, paint, landscaping.
4. And most important - select your Realtor carefully. The best Realtor may not be the one prepared to discount their work -
Good Luck - don't be discouraged, just prepared.
The foreclosure process is started by a lender issuing a Notice of Default after two to three mortgage payments are missed (this process will change in September, see â€œNOTEâ€™ below. Typically, after this notice, and barring any actual sale before the lenderâ€™s actual foreclosure (via a regular or Short Sale), the distressed property would become an REO in about 90 to 120 days (but as they say on the TV infomercials, â€œYour results may vary.â€).
NOTE: Starting in September 2008, Senate Bill 1137 will require that a lender must contact a borrower in default and discuss options to foreclosure at least 30 days prior to filing a Notice of Default. The requirement to contact borrowers applies to loans secured by owner-occupied residences made from 2003 to 2007.
More info: http://sacramento.bizjournals.com/sacramento/stories/2008/07
FINANCING YOUR REO
FHA is the best deal in town right now. The 3% minimum down payment provides you many options not available with other programs out there. FHA also allows you an extra $8K in loan (that does not affect you debt-to-income ratio), provided itâ€™s used for energy efficient upgrades on the house you buy. Also, FHA also allows that minimum required 3% down payment to be paid by the seller as gift, allowing you to use your 3% for whatever might make your new home more attractive and livable.
Steven A. Ornellas, GRI, ABR, e-PRO, CMPS, RE Masters, MBA
REALTORÂ® / Mortgage Banker-Broker / Certified Mortgage Planning Specialist
Steven Anthony Real Estate & Financial Services
Expect Excellence. Get What You Expect.â„¢
By your questions it self, I understand
1. You are interested in a good deal, under market value property!
2. In Ardenwood school dist.
Based on my experience, I would say itâ€™s easier and cheaper to buy a bank owned property than one in foreclosure. Property under foreclosure still has to go through the process of notices of default, trusteeâ€™s sale and then either a buyer picks up a property or bank will take the title and put in the market/MLS. When a bank gets a property back itâ€™s cheaper and process is done already. You get the discounted price, because Banks are not in business of holding properties. They will sell it at a great discounted price. Banks generally respond to offers in 2-5 days the most. In the foreclosure process you may or may not get a property at trusteeâ€™s sale.
Sp, are you interested in a Condo/Townhouse or a single family home?
Please go to the website at http://www.HomesByCharo.com and on left click on Bank owned property. Check out list of bank owned property. For most current list please call me
at 510-381-2105 or email me CharoBhatt@gmail.com
I will be happy to help you negotiate a good deal in Ardenwood.
Good luck to you in finding a good deal.
It's actually very easy AS LONG AS there are some on the market in that area. A good Realtor can help you locate the ones that are currently on the market as well as alert you as soon as new ones become available. Make sure you work with a Realtor that has experience in foreclosures.
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