tiffprl2, Home Buyer in West Palm Beach, FL

Prospective buyer in Palm Beach County Florida. Contacting owners in pre-foreclosure?

Asked by tiffprl2, West Palm Beach, FL Fri Apr 5, 2013

I am a first time homebuyer. I have only been looking for properties for 2 months and i'm not in a rush however it has been crazy trying to find a home here. Inventory is low and everyone is trying to buy! I pulled up to a house with my realtor which was listed that very day, and there were 9-10 cars of people that pulled up within the 30 minute period that I was there. We went to a 2nd house and the same people from house #1 were coming and going from this house also. It is so frustrating. Anyhow, i'm looking for advice as to whether it would be a good idea or not to send notes to owners of properties in the area that I like who are in pre-foreclosure to see if they would be interested in working a deal before their property is foreclosed & listed?! I feel like it may be insensitive but I also feel it could be helpful on both sides & I get an upperhand. Has anyone else done this? If so, how do you address this without seeming insensitive to their situation? Or is it just a bad idea ?

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Answers

5
The short sale lender will require that the property be listed (and for reasonable market value). Who will negotiate the short sale?
1 vote Thank Flag Link Fri Apr 5, 2013
I dont know. I have a realtor, I was just trying to think outside the box as i'm completely frustrated!
Flag Fri Apr 5, 2013
I dont know. I have a realtor, I was just trying to think outside the box as i'm completely frustrated!
Flag Fri Apr 5, 2013
The idea in principle is sound, but reality is the average experience
of Homeowners in pre- forclosure is to rececive a score of letters offering
all types of assistance : some Real,some imagined,some predatory!
Join " the Pack".
Somehow I get the feeling you percieve the players in the Market
as inept at finding property eventhough that's all they do! There
are plenty of houses that can be identified as prospects not yet
reduced in price after time on the Market, other's not properly
"marketed" and left un-sold, Expired's, etc. all pretty much sidelined
by the "masses". The tools to research these resources are not
readily available to non-pracitioners You might try teaming-up with
an Agent and share in the "leg-work" in running down leads that
are harvested from such sources.
As others have suggested: prepare yourself to move on findings! The worst
presentation you can make is anything that seems hesitant or neutral.
My advice Spend your time on the Listings out there that arn't selling
and see what you can do to make-it -happen!



Bob Brubaker Highlight Realty Palm Beach County Fl. 561-876-6649
Web Reference: http://pbc-realcam.com
0 votes Thank Flag Link Sat Apr 6, 2013
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Like I just wrote in another post, I'm a FL Mortgage Broker up at 7:00 am going to pick up my realtor to look at beach condos with pre-Approval Letter and 20k Good Faith Deposit Check in hand!

Its like its 2002 all over again! Only thing is, this time I'll know when to bail and sell off all my properties. When will that be? When all it takes is pulse and desire to purchase to be able to get a loan again! lol

No, I predict we'll be seeing a good long appreciation run this time, at least for the next 15 yrs.

Because I know what I'm doing, I'm having my realtor email over my pre-Approval Letter and Good Faith Deposit to the Listing Agents as he makes the appointments.

Looking at condos in the 380k to 420k range, but had my pre-Approval Letter made out for $500k, why? Because unlike the outdated thinking of most, when I make offers on real estate, I make them from a position of strength....vs....trying to POOR MOUTH my offer!

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0 votes Thank Flag Link Sat Apr 6, 2013
As Tom and Danielle hinted, you can contact these owners yourself, but what if they say, "Yes!"
Are you under the impression you hand the owner a dollar and the house becomes yours?
Do you believe the bank will even talk to you?
Are you aware of who actually will be making the decisions and setting condions for this sale. (Hint: it's NOT the bank.)
Now, it would be very sobering to understand how often a first offer on a short sale succeeds.
If you believe in miracles, this is the perfect venue to see one.

Best of success.
0 votes Thank Flag Link Sat Apr 6, 2013
Dear Tiff,

I feel your pain which is the same pain buyers throughout south Florida are feeling at this very minute. Inventory has been a concern for a long time and is not getting better anytime soon. Frustrated buyers with a lack of choices have flooded new home communities where sales are off the chart. Unfortunately, without a large number of buildable lots builders too are becoming short of inventory and raising prices. Some analysts feel we will see prices rise another 40% over the next two years while others say we are heading for another bubble.

Your idea of contacting homeowners who are behind on their mortgages and a Lis Pendens has been filed is certainly not any easier of a road. About 40% of them will not respond, still others are working on refinancing programs currently available. If you find a buyer who wants to move forward with the short sale process and is willing to put together all of the required financial and hardship information you need to ensure the file is being handled by a skilled negotiator who will work the file. If everything falls into place you might get a response from a bank within 3 to 4 months but these days we see many lenders, especially loans associated with Fannie Mae, counter short sale offers at above market prices. I am hopefully nearing the end of a short sale that is in its 12th month and you would not even believe what we are going through.

Your best bet in this market remains traditional sales by motivated sellers who have taken care of their property. You need to ensure your unique housing needs are fully understood by your Realtor® and like you have been doing touring any new listings that hit the market immediately. Be prepared for multiple offers received by the seller within a very short time period so you have to know the metrics surrounding each home and be prepared to make a strong offer. You must have a strong pre-approval letter showing that your assets and income have been verified.

Have some patience, understand that you are not going to find the "perfect" house at a bargain price as that is not going to happen in the current market. You can succeed but you have to have a game plan.

I hope this information is helpful but if you need anything additional please feel free to contact me at your convenience.


Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
0 votes Thank Flag Link Sat Apr 6, 2013
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