Foreclosure in Austin>Question Details

Arlisa, Other/Just Looking in Dexter, MO

i am looking to buy a house in Austin and want to buy a foreclosure, any advice on any companies that deal

Asked by Arlisa, Dexter, MO Wed Jan 16, 2008

with them directly, do you have to have money down or just be approved for a loan.

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Another alternative to a foreclosure would be to look at Short Sale homes. These homes are on the market to sell at a reduced price to help the current owner prevent foreclosure. You take a little less risk because normally the are occupied by the seller. The drawback is that it sometimes take a while to find out if your offer is accepted.
0 votes Thank Flag Link Thu Jan 17, 2008
FORECLOSURE REALITY CHECK.... Seasoned investors who buy foreclosures know the REO manager at the bank and get "off market" deals. They never have to bid or find a place to learn what's available.

FOR ALL OTHERS: The only "sellers market" in america is the foreclosure market. Don't expect any deals from a foreclosure as the bidding process brings 20-30 people to bid on almost every deal. A deal that was already priced at market. For government foreclosed homes, by law, they have to be priced "at market".

The REO manager has a short list of "cash/close in 2 day buyers", they always get the first right to bid. Then they have to wait for the "public auction" Which drives up those prices. After a 30-60 day period. Then the REO picks the best bid. Sometimes, only sometimes does a REO manager take a property directly to a buyer he knows peronsally. Why should he, he has a bunch of people bidding and driving up the prices.

My REO manager friend likes to joke about all the "first timers" who continue to drive up the bid when they don't hear anything from the bank. Every time I see the "how come I haven't heard from the bank about accepting my foreclosure bid after 30+ days" on trulia, I have to let out a chuckle because he's so right. For those newbies, this is real. They know that when you don't hear from them that a large percentage of people drop a second or third offer higher than the previous one. **WARNING, YOU ARE BEING TAKEN ADVANTAGE OF HERE**

You want a deal on a property right, everyone wants that.... So the moral of this story is:
1. the 60 days you have to wait to hear from a REO, you could have made 2 or 3 better deals with a property that has been on the market for a long period of time. Any realtor can help you drop a crazy offer.
2. You are attempting to make a deal in a house covered in a cloud of bad energy, don't be surprised when it rubs off. Personally I stay away from these for this reason entirely.
3. One way to get a deal is dropping a hand written note on ANY house in a neighborhood you want to buy that says "my girlfriend and I want to buy a house in this neighborhood and yours looks cute from the outside. Do you know anyone that is looking to sell?" I always get responses, better prices and positive energy into the home.

Call me if you want t deal. I did 1.2 mil last month in properties that were 20% off....
2 votes Thank Flag Link Wed Jan 16, 2008
If you feel that you are achieving a bargain by throwing your hat into the ring for the process of bidding on foreclosures, my opinion is that you are wasting your time. Most large lending institutions have REO departments as well as foreclosure lists. The problem is that by law, these companies have to list their homes at market rates and with 20 people minimum bidding on the exact same product, the result is a HIGHER price in the long run. There are so many other ways to obtain better results.
If you really want to make money or get fair market value on a particular property, try asking the seller to negotiate or the builder to give you better incentives. OR THINK OUTSIDE THE BOX!
Please do yourself a favor and do not spend too much time with Foreclosures. This will prove to be a large source of frustrations as well as time and some money!

1 vote Thank Flag Link Thu Jan 24, 2008
Money down for any transaction is usually required. The days of the zero down are all but gone, unless you buy directly from a builder. You can sometime assume a loan and get a good deal, but you have to know someone at risk. Otherwise I would take Perry's advice. You can post an ad on CL promoting yourself as an investor lookin to help someone out of a bad situation, however when you buy a forclosure, you usually don't have a big basket to choose from.
1 vote Thank Flag Link Thu Jan 17, 2008
there are some properties available through a special program that you can get into for $100 down -- or------instead of a foreclosure, let's find a house that needs some work done and go through a program that updates the house prior to a final close and have the repairs folded into the loan --
0 votes Thank Flag Link Mon Jan 21, 2008
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