I have written a lot more on my blog all about REO/ Foreclosures if you need more info check that out as a starting point.
Harrison K. Long
Realtor and broker associate
Coldwell Banker Previews
It is possible for the bank to postpone the trustee's sale if they agree to do a short sale...that is when the bank will accept less than what is owed on the loan. However if there is a second loan, and it has default insurance, they, bank number two, would never agree to a short sale, because the insurance would pay them, the full amount of the second loan.
If it is not a Trustee's Sale and is already bank owned, then it is possible. Quite often REO's that are listed with an agent on the mls will get pulled, and all offers on it are put on hold... how long?? Who knows? They will then put it up for auction, with a 5-10% premium to the auctioneers. If it doesn't sell, then they will put it back on the mls. It's quite frustrating to the agents and buyers waiting in limbo.
Always, always, always, use a Realtor. The laws, addendums, and guidelines are changing constantly as the foreclosures increase. Also, a Realtor can provide you with the most recent comps to insure that you are not paying more than what it is worth. Realtors can also negotiate with the bank to pay for some closing costs as well as any other damages the property may have. Just because the banks say â€œSold As-Isâ€ doesnâ€™t mean they wonâ€™t pay.
As a rule, auction dates are â€œset in concreteâ€. However, one can always attempt to purchase a house prior to auction. House purchase process takes time and should be started as early as possible. If one was buying for cash, did waive appraisal and house inspection (not a smart decision) it still takes time to do tile search. Theoretically, one could purchase a house without going through title search (not wise) but Title Company would not insure title and this would cause additional problems when you try to sell the house. In addition, communication with a bank/lender is usually slow and difficult. In my opinion, process of buying a home scheduled for auction should start minimum six weeks before the â€œdue dateâ€.
Getting a loan for a house slated for auction may not be difficult but satisfying lender requirements may be impossible. Lender will demand appraisal. If any problems are found, lender will insist on repairs and seller usually does not have any money. If seller is a bank/lender they always sell property in â€œas-isâ€ condition - your lender will not "buy" that.. In addition, they would not turn on utilities so home inspector could not do total inspection.
As for the question whether you should work with a real estate professional â€“ ALWAYS!
As a buyer you do not pay commission so service is free. Exception will be your present deal with the bank because commission was not factored in the agreed upon sale price.
It may be possible for you to get an agent on reduced commission but it would have to be paid by you.
George Tucson Home Advisor LLC, Realtors serving Buyers in Tucson and Sierra Vista area for 14 years. 682-8874
Visit http://www.DestinationTucson.biz and http://www.LuxuryTucsonRealEstate.NET
The second, if you are under a contract to buy it direct from the bank, great, it makes more money for them if they do not pay asset management companies. For you I would be very sure you are getting a good deal, appraisals in a depreciating market are always high. It would be wise to talk to a real estate professional to be sure you are getting a good deal. We have offices in Tucson, if you send me an email direct, I can find the one nearest to you.