Foreclosure in Minneapolis>Question Details

Randi Thornt…,  in Plano, TX

please share your foreclosure buying expereinces in the Twin Cities. I want to hear from you!

Asked by Randi Thornton, Plano, TX Thu Sep 25, 2008

Did you buy? Why or why not? What went right? What went wrong? Are you still looking? Share your experience here!

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6
I recently purchased a foreclosure condo in Minneapolis, to use as a rental property, and I have had quite a few clients that have purchased foreclosures. I think buying a foreclosure is a great opportunity, as long as you are willing to take the risks that come along with it, ie, lack of disclosures and buying as-is. Talk to the neighbors to try to get some background on the house. Have a professional inspection. (Make sure you write in the PA that the bank will have the water and electricity turned on and all utilities running prior to the inspection, the bank WILL pay for this). Buy a warranty (The bank probably will pay for this as well if you write it in the PA). And be prepared to wait. I have been lucky enough to deal with some awesome local REO agents, that have followed up and made the process easy, but you will wait for a signed PA, wait to close, and even after you close, you have to wait up to 24 hours for the bank to approve the HUD. So if you are a buyer that has to be out of their home by a certain date, I would make alternate plans in case you cannot close on time. My last buyer had to live with her family for a week between closing on her previous home and closing on the new bank-owned home. But she took it all in stride because she was getting such an amazing price on the foreclosure. So be careful, be patient, but take advantage of the opportunity.
1 vote Thank Flag Link Fri Sep 26, 2008
Aaron is on point with that comment, I saw a stat somewhere that 5 agents control 90% of the listings around the Twin Cities. That is a lot of inventory and who knows that stat has probably fluctuated a little bit. The communication is a probably one of the only problems.

Dealing with banks and REO properties, it is always on their time. The buyers are usually aware of it that so it doesn't really become a problem. Most buyers have to understand what they are getting into and have to realize that 'as is' means 'as is'.

http://www.minnesotareobuyers.com
1 vote Thank Flag Link Thu Sep 25, 2008
There's been some good ones, some bad ones. I disagree with Todd though on the diligence aspect. There have been several instances where the listing broker didn't do there job and it was of no fault by the buyers or myself. There are some that do this job well, some who don't. You can't always figure that out at the beginning and it is hard to tell a buyer not to buy a house because the agent that has it for sale is tough to work with... they want the house!
1 vote Thank Flag Link Thu Sep 25, 2008
The foreclosure experiences I've had are varied. Some listings agents don't even bother to get back to you on specific questions. Others have a team that are right on top of it. Although I would much rather sell a foreclosure property, as the sellers usually respond fairly quickly (as opposed to short sale). All in all, preparing the buyer for some possible unusual circumstances comes in handy. For instance most foreclosure title companies are overwhelmed and therefore things get missed or put in a pile if you're not on top of them. The listing agent, speaking for the seller, will usually say they won't pay for utility turn-on/off, or repairs . . . but we ignore that and ask for it anyway. They have always done most of what we've asked so far.
Good luck!

Kim Eisen
RE/MAX Realty 100
"Helping People Make Smart Real Estate Decisions for over 28 Years"
Experience Counts!
(651) 457-HOME (4663)
0 votes Thank Flag Link Fri Sep 26, 2008
Most REO purchases (for me and my clients) are pretty smooth. In the past, there were some communication issues with preferred title companies and listing agents; however as of recently, service has improved a lot.
0 votes Thank Flag Link Fri Sep 26, 2008
My clients have had great foreclosure buying experiences. The experience is only as good as the diligence done on the frontside by myself and my Buyers.

Thanks, Todd Norsted
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Thu Sep 25, 2008
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