Foreclosure in Spring>Question Details

Bryan, Both Buyer and Seller in Spring, TX

I am looking at buying a (pre) forclosure home in Houston. What should I watch out for and How do I get a?

Asked by Bryan, Spring, TX Sat Jan 26, 2008

list of homes??

Thanks

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Find a Realtor who deals with short sales and is experienced with working with Loss Mitigation departments of the Banks who holds the mortgage. Several times there are more than one mortgage holder. BE AWARE that SHORT SALE does NOT equal SHORT TIME! You will need to have quite a bit of patience as the process is sometimes VERY long and tedious. Even when a negotiator is assigned to a file for short sale or for a pre foreclosure work out, keep in mind these banks have thousands of properties nation wide and relatively few trained people who are handling huge amounts of files, and are very hard to reach. Make sure your Realtor has a strong relationship with a reputable title company that has an aggressive Escrow officer who will work with your agent to stay on top of the Lender. Do not make plans to move out until your agent has verified the proper paperwork and payoffs, settlement statements, etc are at the Title company and ALL parties have signed off on the details of the contract. You can get an extremely good value on a short sale property if you can wait out the process (generally add 60 to 90 days or more to a normal contract) but if you are in a hurry, I would have your Realtor look for a very motivated seller and avoid the drama!
0 votes Thank Flag Link Wed May 21, 2008
A pre forclosure should still be a deal. The banks asre taking losses on them. Now I will talk Spring.
If you are buying in a neighborhood that already has a lot of older rental homes and someone bought a home and can not make the payments the answar is NO. Unless you can ger the house for 50% or less the going rate. LOL.e Frwy
If you are talking about a newer bedroom subdivision yes. If you are talking about the West side of the
frw Yes.
There is no list of the Preforclosed Homed - we are discussing a new entry on our MLS to seperate them. At this time you need an experienced realtor that know how to spot them when it is not included in Agent remarks.
Don't discount all foreclosures either - same lending institutions have cleaned up, will make allowanced for repairs and lein issues are gone.
Margaret T Hatcher
Web Reference: http://www.century21conroe
0 votes Thank Flag Link Wed Apr 30, 2008
Something to keep in mind when buying any home is to make sure it is in an area that the value hasn't been decreased further by other foreclosure properties. What I see happening in this market is there are 1st and "2nd" lienholders - both will have to agree to the short sale or pre-foreclosure price. Problem with many "2nd" lienholders is they are not the main lien so they will be a little more difficult to work with; thus, there are many foreclosures happening that may have been avoided if there was only one lienholder to get a "yes" from so to speak.

If you purchase in a known area with other foreclosures, make sure you plan on holding title for a while until the market corrects itself in that area otherwise you may find yourself in a position that other homeowners are in currently, they bought two years ago and now can't sell or refinance because of the lower values.

There are a lot of variables in this market when looking at pre-foreclosures or foreclosures for that matter. Work with an agent that has experience with them so you'll know your odds are better at getting it closed...
Web Reference: http://www.michelleallen.us
0 votes Thank Flag Link Thu Apr 24, 2008
The Pre Approval letter you should really have before looking at any real estate so lets get past that.
You are wise to try a pre forclosure - Why - Well when showing foreclosures I usually warn people that people take care of their homes the same way they do their bills- prepare to see a mess. With a pre forclosure it is usually someone that has some sudden change in circumstances and they are trying to take some responsibility. These people quite often have not neglected their homes and if so not for as long.
Both buyers agent and sellers agent must know what they are doing in a short sale. Your agent will have to be quite experienced in this field - I have had to hold hands and walk the selling agent through this process . Your answer from Ms Feldman is correct - sometimes you can get to the end and have it all fall apart - that is why you need an agent that stays on top of it. We still can not be "GODS" there are some banks that no one can deal with - and I won't.
Another advantage to pre forclosures is that they are not as time sensitive as your Bank owned and HUD properties on closings. You are allowed inspections and at times price ajustments for repairs. Again this has to do with the lender you are dealing with.

Good Luck with your search
Web Reference: http://www.century21conroe
0 votes Thank Flag Link Thu Apr 24, 2008
One more thing, Bryan, you need to go ahead and get pre aproved for a mortgage. That will give you the best advantage when you find your home. Most banks won't any consider your offer without a pre approval letter (not pre quailified.)
0 votes Thank Flag Link Sun Jan 27, 2008
The best way to get foreclosure list is to have an agent pull foreclosure homes that fit your needs from the mls list. The agent side of HAR identifies homes as foreclosures by listing the disclosures that are required for the sale of any given home.
0 votes Thank Flag Link Sun Jan 27, 2008
No, I do not have to sell prior to buying. How would I get a list of foreclosures in the Spring area??
0 votes Thank Flag Link Sun Jan 27, 2008
Bryan, My question to you is do you have to sell before you buy? I'm asking because banks won't take contingency offers. So, if that is the case you are better of buying from an individual who needs to sell, but has not involved the bank.
0 votes Thank Flag Link Sun Jan 27, 2008
NT sums it up pretty well. What is your purpose of looking at preforeclosures? Normally I'd suggest you wait until it goes through foreclosure. You can go through the exact same headaches, but typically a little tighter timespan.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sat Jan 26, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Pre-foreclosure or "short sale" properties as they are called are subject to bank approval, subject to multiple offers coming in from other buyers and generally (but not always) are sold on an as-is basis.

Watch out for the amount of time it will take to get an answer from the bank. Watch out for other buyers who out bid you in the process (submitting their offers even long after you've submitted yours). Watch out for falling in love with a property you may not be likely to get. Watch out for tying up an escrow deposit on a property you don't control. Watch out for the bank not paying some of the traditional closing costs that seller's pay (but you don't have all the dumb fees in Texas that we have in Florida so you may not have as many of those issues).

You can get a list of homes from a knowledgeable Realtor in your immediate area and you can utilize that Realtor's experience to help you through the negotiation and communication process with the bank and to keep you from tying up that escrow deposit.

You will have the opportunity to have the property inspected and appraised prior to closing.

Your first step is to get a lender letter of pre-approval as ALL short sales and foreclosure sales (banks) will require that you be pre-qualified or show proof of funds before they execute a contract of sale with you -so just get this out of the way early.

Any list you buy will be old, don't waste your time. The banks are working directly with Realtors to move these properties out and that's your best resource in this process bar none.

I miss Houston, lived there 27 years. Good luck, hope you get a great home and a great value,
0 votes Thank Flag Link Sat Jan 26, 2008
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