Note that prices are no longer going down. There is stiff competition for REO properties right now, and the banks know that, so they won't necessarily just jump at the first offer that comes their way. You can expect to compete with multiple offers. Just something to think about. Best of luck. Call me at 480-789-9584 if I can be of further help to you.
Sorry not the answer you want to hear. Move on there are lots of good deal foreclosures out there. Good luck investor Nia. And good luck getting a loan. Banks donâ€™t lend anymore to us investors. Cash is king.
The ONLY thing you might be able to do to find a home PRIOR to it being listed (not the one across the street, obviously), is work with a real estate agent that participates at auctions. There's additional risk that comes with this approach, but it's possible to get a good deal on a home that way. There's also additional risk that you'd need to know about with this approach, but if it's something you're interested in, I can give you the names of some agents that work in this niche.
Best of luck!
Realty ONE Group
If the person that was at the home told you that the lender was getting ready to list it, (and they were cleaning it) then, it most likely already has a listing contract on it with a selling agent. Additionally the banks usually require for that selling agent to have it on the market for a period of time before they will review the offers so that they are more likely to get a higher offer for the home due to the competition. It is not likely you will have success trying to purchase without going through the banks preferred process. They want the most they can get for the property. And in our current market, this process works best for them.
If we can be of help in furthering your investment portfolio, please do not hesitate to contact us.
Brenda & Ron Cunningham
West USA Realty
*** Recognized by the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley" ***
Jim is correct by stating banks want to get the highest price possible for each property they own. It is very uncommon to contact a bank and be able to purchase a property not listed with a real estate broker.
As an alternative, you could purchase properties at a trustee sale where there are hundreds of properties that go up for auction each day. Now, its competitive at these auctions also but you can find some good deals if you bid often. I offer a trustee sale bidding service where I can go down to the auctions to bid on properties on your behalf. If you would like to learn more about my trustee sale bidding services, then please feel free to contact me or visit my web site.
Sean Heideman, Broker
There are several reasons as to why that is, but the primary reason lies in the fact that the banks can't sell real estate themselves, this includes Fannie Mae and Freddie Mac. They must hire an asset management company to control the property (there are hundreds throughout the USA), who in turn hires a real estate agent to list and sell the property.
Also, keep in mind...the bank wants to get the HIGHEST possibe price for the property by exposing it to the largest group of buyers possible. The only way to do this is by getting it listed with a real estate agent, who put's it on the MLS which in turn will likely generate multiple offers, which will then increase the sales price.
I have been successful in the past in contacting the listing agent BEFORE it came on the market, but it takes a bit of 'detective' work to first find out who the correct bank or asset manager agent will be and then who the listing agency is. It's much easier if it was a Fannie Mae or Freddie Mac foreclosure (or FHA/VA).
If it was a smaller bank or a non GSE loan, that's a bit tougher; there are several asset management companies that could be hired to sell the property and finding the right one is not easy.
Let me know if you'd like some help in purchasing this home!
Realty ONE Group
Depending on if its a Fannie or Freddie loan, you may be able to find the agent before it lists and ask to be notified...or have any agent sign you up for an automated email alert for that specific property...so you can make an offer the day it comes on market.
Only smaller local banks will allow offers prior to listing or at auctions.