Home Buying in Dumont>Question Details

babygif, Home Buyer in Dumont, NJ

Why is it such a convoluted military secret regarding access & information on purchasing a foreclosure home?

Asked by babygif, Dumont, NJ Fri Aug 10, 2012

Wouldn't it benefit a bank or homeowner trying to sell to have as many people aware and bidding on a property? It seems such a secretive and hidden process. What do you do after finding a property online?

Help the community by answering this question:

Answers

6
Depending on what county you're seeking to purchase a foreclosure, there are public websites that actually have information on auction dates when you can purchase the properties. The websites that most consumers see foreclosures will require the assistance of a Real estate agent for more details. Those websites have limited information.
0 votes Thank Flag Link Fri Aug 10, 2012
I do not understand what you mean by this question. Some properties are being sold at the sheriff auction and realtors are not usually involved in this process since there is no commission involved and anyone can go and bid on these properties but a lot of homework is required in order to be successful in these transactions and the access is granted only a few times before the properties become available. This process is complicated but not a secret. Other foreclosure properties are sold through Realtors and are accessible. Some websites advertise foreclosure properties and those homes are not even for sale. So there are many misunderstandings with buyers looking for forclosure deals since they see a property on the internet advertised by other forclosure companies that do not follow mls rules and then property has not gone through the process yet or is an old listing that can't be shown since it is not even on the market. Some of those companies require info and credit card in order to view great forclosure properties for $8000 that are not even in the area you are looking in. So best way to find a place is to hire a Realtor a Buyers agent and trust their expertise when they show you the properties in your criteria, they know what is available and what is the history of the property. Good luck!!
0 votes Thank Flag Link Fri Aug 10, 2012
If you know the answer, the question are always easy. With each and every short sale and foreclosure completed, new questions are uncovered and new answers found. And that is true even for those of us who are veterans at this business.
-
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.
0 votes Thank Flag Link Fri Aug 10, 2012
It seems, the Banks' biggest fear is getting into the middle of a deal, and having it fall through:
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!
0 votes Thank Flag Link Fri Aug 10, 2012
There are several reasons:

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!
0 votes Thank Flag Link Fri Aug 10, 2012
I am not sure what you mean. normally after the process is complete the bank will employ a realtor to market the property which will include listing on the M,ls and performing the normal selling procedures.
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
0 votes Thank Flag Link Fri Aug 10, 2012
I see many "foreclosure" homes posted on Trulia in my area (Bergen County, NJ) , yet they all have the same contact information - RealtyTrac. No agent/broker, and no hone number listed, just - RealtyTrac. When you go to the RealtyTrac website, they want you to join with a credit card???? This is what you have to do to find out the smallest bit of information about foreclosures? Also how does an average person find out about homes being auctioned? That is what I meant when I posted my question commenting that it seems secretive and convoluted.
Flag Fri Aug 10, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer