Properties go though 3 general stages when ownership is going from an individual to a bank. These are:
Short sale - the seller will not earn enough on the transaction to cover the outstanding loans. Therefore, the seller and then the bank (or banks) have to approve the sale. Depending on whether there is a 1st and a 2nd loan on the property, these can be reasonably prompt or take months. They tend to take months when the 2nd loan is due to get nothing but are demanding something from the primary lender - and even if the 2nd is due to get nothing, they still have to sign off. Screwy, I agree.
Foreclosure comes next. NOTE: Coldwell Banker agents cannot be involved at the foreclosure stage. The big risk here is that you may not get clear title to a property if you buy in foreclosure. You may also have to evict any tenants living there, etc.. Basically, it is a big headache if you are unprepared for the eventualities.
Finally, a property becomes bank owned (REO) in the final stage. Here, you deal with a bank (representative) rather than a seller, but it essentially progresses like a normal transactions. Disclosures are usually a little light in this case.
Getting back to your question, I (or most agents) can help with short sales or REOs, but foreclosures are a no-no for us. As for web sites listing foreclosures, etc. (e.g. RealtyTrac), I find that much of this info is valid, but a lot of the time it is invalid as well.
If you want to try to contact sellers directly, that is your perrogative. Since the vast majority hit the MLS when they are ready to go on the market, that is when I (professional agents) usually can be of use.
Hope this helps!
If you are seeking an agent in Palo Alto, the dialing prefix will be (650). Area code (408) is further south towards San Jose and (415) is north towards San Francisco.
On the other hand I've recently a few foreclosures on various online resources, so been wondering are they real? Are they going to turn into real foreclosures (since they are now in the notice of default stage and seems like owners are still living in there)? What's the best way to find out? I don't want to cold-calling the owners since they might be upset with this harrassment, so I'm considering having an experienced agent to helping me.
Again I understand it's challenging, and that's why I need an agent that's really really patient and will stick with it even though it means that she/he might get a smaller commision out of a foreclosure.
Thanks for all your replies.
My name is Allyson, I do specialize in bank owned (foreclosed) and short sales properties and I have found my buyers some very good deals. I have purchased Forclosed homes al over Santa Clara County.
I have the experience you may have been looking for.
You can check me out at my web site where you can also put in a search just for bank owned properties for your area of interest Palo Alto and receive up to date listings and daily updates automatically and it is FREE!!
You can check out my web site at http:// http://www.homesbyallyson.com and set up your search or just email me with your needs and wants what price range and area or areas you would like to search in and I will set it up for you. And as I have said you will receive up to date listings as well as any changes in price or status.
I would be happy to talk with you about your needs.
Once we determine what you are looking for, I can set you up with a MLS push, delivering new REO listings straight to your e-mail inbox. If you want to see a sample, drop me a line and I will show you what I offer.
Alain Pinel Realtors