You can buy a foreclosed home.
There is no secret.
However, you may come to realize this is not a simple process.
You may come to realize a citizen is rarely prepared to purchase a foreclosed home.
You may come to realize you simply don't know what you don't know.
The bank understands this and finds it best for the bank/processor to have such purchases executed in the environment where the buyer has had access to proper guidance AND ensuring the process will be executed by those who understand the process on both the seller and buyers side.
Neither the banks nor the asset managers have a desire to teach the untrained how to navigate this process.
It should be noted that YOU have access to all the information you need. (not on aggregate websites)
You have access to the guidance you will need.
You have access to those who know the separate processes that each bank dictates.
You have this access and in the overwhelming number of instances, the cost to you is zero or very, very little.
Consumers often choose the most convoluted process one can imagine while right in front of them stands a professional holding the gateway to success open for them.
There are no secrets.
No hidden process.
No secret society.
Some would understand that if you don't know what you're doing the outcome is predictable. If you wish a different outcome, find someone who does know what they are doing and get them on your team. At zero or very little cost to the buyer, I find the distress you express to be self-inflicted.
Call a pro! What is so secretive about that?
Be aware, you can choose to buy foreclosed homes at auctions. These are the same classification of home sale. Just present the check and start bidding. The consumer always has the option to choose.
To successfully complete the foreclosure purchase process, however, will require dedication, knowledge, experience and skill. Tell me, in what other industry do you have access to dedication, knowledge, experience and skill or zero or little cost?
There is no secret.
This is however, convoluted thinking.
They often will take a lower offer, if it is a STRONGER offer.
They therefore, require all REOs and Shortsale to be handled by Realtors; they will not deal with a Buyer directly.
If you see a property that you like, talk to a local Realtor about buying: It doesn't cost you a penney; not a penney more! seriously!
1. There is what's called a "shadow inventory" of foreclosed homes that the banks have not released for sale yet. If all the banks released their entire inventories of homes on the markets, it would absolutely destroy property values. So, that house down the street that that "you heard" the owners moved out due to foreclosure........is sitting on the bank's balance sheet, and will slowly be released for sale. Doing this allows the banks to command a higher sales price instead of increasing the supply and driving the prices down.
2. The foreclosure process takes a really long time. The property that you might think is in foreclosure, might be....but the process maybe hasn't finalized yet. Generally, the properties are first sold at auction, with the vast majority being sold back to the bank, who eventually then list them for sale with a real estate agent. In any event, the banks generally aren't going to respond, or deal with you directly regarding information, especially before the foreclosure process is complete.
3. After you find a property online, you'll want to get ahold of the listing agent who is handling the transaction for the bank. They use agent to sell their properties because A. the asset managers most often have never seen the property, and don't know the local market, and B. they don't want thousands of people calling/emailing the bank offices looking for information on 150 different properties.
Hope that helps!
Prior to the completion of the foreclosure process the bank cannot disclose any information for legal reasons. Bear in mind soup to nuts it takes best part of 2 years in this state for a property to reach the final stage