You have got great answers from Real Estate pros. for buying foreclosure house before itâ€™s on the market.
By following Toddâ€™s formula, which is a great way to acquire a property even before itâ€™s listed with an agent for short sale. Yes, you have no competitions by following that method, but, you have to do through research, make lots of phone calls, meet several home owners in trouble, talking to them with sympathy and listing to their stories, seeing their condition and witness their emotions, especially when they are loosing their homes is not easy. What I meant by that is, not every one can perform such task. It requires expert dialogues and special approach.
If you are an investor and want to buy several properties before itâ€™s foreclosed you may want to hire a team to co-operate and co-ordinate this task. If you want just bargains and not go through the hassle and time of researching, calling and meeting people around, you may want to buy REOs in bulk.
You can reach out to some asset managers through some connections and acquire properties prior to they are listed or assigned to agents. It depends how big of a portfolio you wish to hold and how soon you want it.
Bulk REOs are sold in millions.
Good luck to you on your endeavor.
BTW, for REO listed properties you may want to check my
website at http://www.HomesByCharo.com
Itâ€™s very difficult in the current market to get a home before it goes to foreclosure â€“ because of the declining market, homes in pre-foreclosure are typically all short sales. Even if the owner wants to sell the home, the outstanding mortgage balances have to be paid off or negotiated with the lenders. Ultimately, itâ€™s not the seller who decides the price, itâ€™s the bank.
If you want to get a foreclosed home before it goes to the market, the only real way is to buy it at the auction on the courthouse steps. Itâ€™s not a place for the timid.
Once banks redeem their properties at the trusteeâ€™s sale, they turn the assets over to asset managers whoâ€™ve learned that the best way to sell foreclosed homes is actually on the MLS.
This is work for the agent but he/she should be willing to do this or you need a different agent. Itâ€™s the aggressive agent who is finding houses for his/her clients.
You can go to the county recorderâ€™s office in your county of interest and look up Notice of Default by date and print out or simply write it out on a pad. Go meet the owner, tell you are trying to buy a home and have they considered selling? Then get your agent involved with those that gave you a positive response.
These are two variations of the same theme. Also, remember these owners are being bombarded with letters from attorneys, real estate agents, foreclosure â€œspecialistsâ€, etc. Tell the owner your story you are looking to buy for your home â€“ not to flip it. Talk about your family, be sincere and listen to their story. They all have one. Plan on talking to 50 homeowners before you get a deal.
What you are trying to do is get a home with limited or no competition.
You should also get pre-qualified with a reputable lender so you know your price range and monthly budge, and so you can move quickly when you find your house. You can also use your pre-qualification letter to impress the lender that you are a good candidate for the purchase.
Senior VA FHA Loan Specialist