Buying pre-foreclosures and bank owned properties

Asked by Graci, Germantown, MD Tue May 1, 2012

I am beginning to invest in germantown/gaithersburg area. I am looking to buy pre-foreclosures or properties directly from bank before it hits MLS. Who in this area will be able to help me out with this. Are there agents/companies who have contacts with banks?

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Donald Mituz…, Agent, Chappaqua, NY
Sat Mar 23, 2013
The only chance you might have is following up the foreclosure sale immediately with the bank. Odds are, the bank won't even talk to youeven IF you can find the right person to talk to. I did buy a house this way myself a number of years ago. My advantage was I was a real estate broker and the bank sent me the keys. This is not likely to happen today. The only way to buy a foreclosure before it gets to MLS is to buy at foreclosure sale itself. Keep in mind, you may be paying MUCH more than if you waited until it gets listed. Get yourself a good agent and be ready to see anything new on the market the moment it's listed. Also, have your proof of funds to pay cash if you really want to buy this type of property. Odds are it won't qualify for financing in it's current condition and the bank that owns it doesn't care. They will just find someone else with cash to buy. If you are looking for constant nightmares, just try and buy a short sale.
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Alfonso S. H…, Agent, Rockville, MD
Tue May 1, 2012
Hello Graci, I have to agree with Sally that in the local market here in the Germantown/Gaithersburg area the foreclosed properties are in the MLS system. With my partner we deal with the banks in listing foreclosed properties and until we get the word from the bank to put the property in the MLS system, we cannot accept any contract nor advertise the property. You have to work with a realtor that is able to check the MLS on a daily basis in order to see what has come on the market and notify you. In our area the bank owned properties are generally the lowest priced properties on the market within that sub-div, unless the sub-div has many of these distressed properties. At this time there are only 10 bank owned properties that are active in the MLS within the Germantown & Gaithersburg area.
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Sally Grenier, Agent, Boulder, CO
Tue May 1, 2012
Not sure how things work in Germantown, but in Colorado, there's no way to buy a home directly from the bank PRIOR to it going in the MLS. And "pre-foreclosure" is really a "Short Sale" and these will be listed in the MLS as well. You need to find a local Realtor who can work for you as a Buyer's Agent. He/she can set up a search in your local MLS for properties that fit your critiera. You'll receive notification the day they hit the MLS (unlike these sites like Trulia or Zillow) where it takes several days for them to pick it up on their IDX feed.

P.S. Buying a short sale or a foreclosure isn't always a great deal. These properties will sell for "fair market value" -- same as any "regular" sale. Check out my blog post about this:…
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