Home Buying in 55344>Question Details

Anderson, Home Buyer in Minneapolis, MN

How do you get the listings before it goes to mls for forclosures?

Asked by Anderson, Minneapolis, MN Mon Apr 7, 2008

I am looking in the eden prairie, channhassen MN area

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Answers

6
Anderson:

Lots of answers here, but only one (Tim) appears to have read your question which was how to get listings BEFORE it goes to the MLS. Not after. And I'm not sure his response gave you any tools to do so.

If you want to identify properties before they're listed on the MLS, then you need one or more ways to identify properties before they're listed. It's that simple. How?

Some properties will be listed on the MLS, but they aren't yet short sales or REOs. A typical scenario (around Northern Virginia, at least): Someone bought a house in 2004 for $400,000. As the bubble expanded, the "paper" value of the house probably rose to $500,000. Then the bubble burst. The owner had an adjustable rate mortgage, saw the handwriting on the wall, and tried to sell. Problem is, there wasn't much equity, and the owner was following the market. So, looking at the MLS, I can see that the property was listed at $525,000 in the fall of 2006, and slowly reduced to $475,000 in the winter of 2006, when the listing was withdrawn. It was listed again at $465,000 in the spring of 2007, and reduced down to $430,000 by the fall of 2007. That's a house heading to a short sale or foreclosure. You won't see any mention of that in the "Comments" section of the MLS. But to an experienced agent, it's screaming out.

Problem with that type of listing is that there's no equity left. And so you'd have to try a short sale, which the seller might or might not be willing to do.

However, the market is filled with these. Any Realtor can set up a screen for that type of property. I'd start with a purchase date of between January 2004 and January 2006 with DOMP (days on market for the property) at 100+. Then I'd fine-tune the parameters. If you're working with a particular price range or location, I'd plug those in. Then I'd look at each one for the particular pattern I described.

A second strategy is to track "Notices of Default" and follow up with the owners. Another posting below mentions RealtyTrac. That's one source; there's debate here on Trulia and elsewhere about the quality of RealtyTrac's data. But you can do that. Also, such notices are published in newspapers serving the geographic area; it's required by law that such notices be "published," which usually means in the classified ad section of a newspaper. Or, what real investors do is go down to the courthouse once every few days and go through the records. Most courthouses have very helpful, friendly personnel who'll show you where the documents are. All that's important because not all preforeclosures are listed on the MLS. The owner knows he/she has fallen behind on the mortgage and has received a notice from the lender. But that doesn't necessarily mean the owner's listed the property for sale. Often, she/he hasn't. So: That's another way to identify properties before they go on the MLS.

Another way is to network with loan officers and Realtors. When someone's in financial trouble, one of the first things they think of is refinancing their loan. And so the first place they go to is a mortgage broker or loan officer. Very often, however, the owner can't refinance. They've missed payments, and/or there's no equity in the property. The mortgage broker is unable to help.

Similarly, one of the first reactions of a distressed owner is to sell the property. But if the owner owes $400,000 on a property that's only worth $375,000, most Realtors can't help unless they try a short sale.

If you network with Realtors and mortgage brokers, you may be able to get leads regarding owners they're unable to help.

Another technique is to market for such properties. You can do it; some Realtors may do it. Many investors do. Try direct mail. Or advertise on CraigsList. Advertise under "Real Estate Services" as well as "Housing Wanted."

People are already doing it. Here are a few from the Minneapolis CraigsList:
________________________________
we want your house...

--------------------------------------------------------------------------------
Reply to: serv-xxxxxxxxxx@craigslist.org
Date: 2008-06-19, 9:23AM CDT

if you are in foreclosure or just want to get rid of a house we are the people to call. This is no gimmick, we will pay you CASH for your house. Feel free to email me if interested. Thanks

Need to Sell? We buy Houses too. (Twin Cities)

--------------------------------------------------------------------------------
Reply to: serv-xxxxxxxx@craigslist.org
Date: 2008-06-19, 8:19AM CDT

My name's xxxxxxxxxx, I'm an investor/entrepreneur. If you need to Sell your house or property, Give me a call.
-non-MLS properties preferred.
-Flexible
-Get out of a bad situation and on with your life.
-I work with hundreds of investors all over the Country
I also offer paid referrals if you know someone who needs to sell.
Cell: 763-xxx-xxxx
Office: 1-888-xxx-xxxx
_________________________________

Hope that helps.
1 vote Thank Flag Link Fri Jun 20, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
As an experienced agent, I can build custom searches on the REALTOR MLS and get you the listing 0.6 seconds after it goes on the MLS. Hours or days faster then most consumer MLS sites. If this is of interest to you, give me a call. Here is an example in Eden Prairie and Chanhassen today.

http://matrix.northstarmls.com/Matrix/Public/Email.aspx?ID=4…
Web Reference: http://www.JoeNiece.com
0 votes Thank Flag Link Fri Jun 20, 2008
Hi! I'm a BUYER and I'm buying in EP after looking for a year! There's a lot to know and a lot to learn! There were two REO houses that were 100's of thousands less right on the block of $300-$600+ homes in EP where two people got a great deal! What I found was ZIP realty allowed me to search on-line for bank owned homes and find some. I learned that Chanhassen and Chaska had through the roof taxes and they'll be growing whereas EP has sua sponte reduced Tax Value and Taxes. The key then is repairs or damage, significant? Square Feet, Location, other costs to live... i.e. it's an easy $10,000k a year on top of the mortgage, or even outright owned property--so you have to plan for that. I saw a sign BANK OWNED and was soooooooo lucky not to have purchased a less nice property where the SELLER was doubling or tripling their investment, here in this market... so I found one where even w/ adjustments, the purchase price will be some $50k below the market and $95k below the prior buyer, and the place is quite new and was a model w/ all the extras. Look out for closing costs and pro rata fees and esp. if mortgaging as that will run as low as $1500 extra and as high as any amount, i.e. $10,000k plus. I'm not a realtor, but I worked with a realtor who I knew would "have my back," as I "had his" when he and his wife were my clients for their important unrelated business. Good Luck! Remember YOU are in the DRIVER's SEAT!
0 votes Thank Flag Link Tue Jun 17, 2008
Anderson......

The likelyhood of getting in on REO listings before they hit the mls is slim. Lot's of promises of that out there, but typically, they are assigned to listing agents by the bank and then listed on the mls. Tim's point on working with a qualified Realtor is accurate...that'd be your best bet!

Thanks, Todd Norsted
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Mon Apr 7, 2008
Anderson, if you are looking for a list of foreclosure and Short-Sale properties that have not hit the MLS you need to find an agent that is on the inside track for buyers. Well, that is what the Johnson & Murphy Real Estate Team is all about. We are specializing in helping buyers find foreclosure and Short-Sale properties not on the market and on the market. In the foreclosure environment you need to have an experienced realtor to help you get past the banks red tape and to closing. These are not your typical everyday real estat transactions. I highly reccommend you talke with an experienced realtor; remember when buying a home your realtor is FREE. They get paid by the seller not you, so in all honesty you are not looking out for your best interest if you are not using an experienced realtor in the foreclosure market. If you would like more information please visit my web reference below. Thanks,
0 votes Thank Flag Link Mon Apr 7, 2008
Anderson,
There is a paying site called Realtytrac.com they track preforeclosures as well as foreclosures. So you could pick up and maybe get a short sale. Just beware they do take a long time and it can be a drawn out process.

Larry Story
Coldwell Banker Triad
0 votes Thank Flag Link Mon Apr 7, 2008
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