Negatives of buying foreclosures:
1. Sold As-Is
2. Buyers fail to do their due diligence
3. Property condition or unforeseen repairs
4. No Seller Disclosure Statement, undisclosed items (foreclosures are protected classes and thus don't have to disclose like a regular seller/individual).
5. Deferred maintenance
6. Delayed lending due to property condition
7. Few repairs (if any) by the banks selling asset
8. Delay in communicating with some listing agents
Positives of buying foreclosure:
1. Possible negotiation (unless it is an area with a lot of demand or multiple offers).
2. Fast closings if cash sale
3. Price vs retail value (there tends to be a discount with most foreclosures unless of course they are in high demand areas then banks are wanting to compete with retail sales)
I hope this helps. Let us know if our real estate team can assist you. :)
A HUD home is done with online bids, Fannie Mae Homepath are, too.
Your Buyer's Agent's Broker must be registered with HUD to bid on these properties.
All have a listing agent once it is posted on the MLS. The Seller/Bank pays the commission.
The Buyer pays his closing costs. If you are bidding against multiple buyers, you need to have an agent that knows what they are doing in order to put you in the best position to win your bid.
Most Foreclosure purchases are CASH at this point since the banks do not want to deal with a lender that is going to get picky on the condition of the home. If you have a Conventional Loan with a local lender, that is best. You will need Proof of Funds for your purchase, too
Having done numerous foreclosures of all types in the past, I can tell you that the best deals in Houston are pretty much gone. I noticed that some of the banks were holding back on putting them on the market in the anticipated uptick of home sales this past spring. They are getting as much for the homes as regular sales in decent parts of town.
Do check out your Buyers Agents websites and pick the Realtor best suited to you.
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
As for simply purchasing one from an MLS listing ...
Infomercials aside, itâ€™s a myth that anyone can just pick up a foreclosure for pennies on the dollar. While they may be aggressively priced at first, the strategy is to raise the stakes through a â€œbidding war.â€ Most end up selling for more than the asking price and close to actual value. Nobodyâ€™s giving away houses these days.
Just about all of these places need work beyond cosmetic updates. Simply put, theyâ€™re best suited for investors with deep pockets. I work with several, and see what it takes to bring such homes to livable condition â€¦ it ainâ€™t cheap.
The terms should suffice to drive all but seasoned buyers away â€¦ â€œas-is, where-is, with all faults.â€ Bottom line: itâ€™s yours as it sits â€¦ although most contracts include an opportunity to inspect the property and void the transaction. These homes are usually in rough shape, so itâ€™s imperative to have them checked thoroughly â€¦ roof to slab. The cost is on the buyer and not reimbursable, even if the sale doesnâ€™t close. The lien holder/seller will make no allowance for repairs â€¦ â€œas-is, where-isâ€ sums it up.
Ironically, you can likely purchase a great home in better condition for about the same money â€¦ possibly less, given what it would cost to get most foreclosures into shape. It will be my pleasure to work with you toward finding that special place which best suits your familyâ€™s needs. There is no cost to you as a buyer. If I may be of assistance, please feel free to contact me.
Trend Setter Realty
3333 Alabama, Suite 125
Houston, Tx 77098
License No. 0573768 Atlantic & Pacific Real Estate (US), LLC
I am a REO Certified agent. I had provided â€œcradle to graveâ€ services to multiple foreclosure properties for Bank of America, CMS (Carrington Mortgage Services), and AMHSI (Now Ocwen).
"Craddel to Grave" include, but not limited to, CFK, communicate directly with Asset Managers, provide monthly BPO, prevent code violation, weekly inspection, MSR, and much more.
I had assisted Sellers (Banks), investors, buyers with REO properties. I have the experiences and knowledge to guide anyone through purchasing a REO property and will be able to answer any questions that you may have regarding your Real Estate needs. You are more than welcome to send an email at KashiRealtor@Gmail.com to schedule a phone conference or more questions at your convenience time.