So I understand buying a REO/ Foreclosed property is next to impossible as a buyer. Whats the best way to purchase this kind of home??

Asked by Jeremybanks1, Austin, TX Mon Feb 11, 2013

First time home buyer

Help the community by answering this question:

+ web reference
Web reference:

Answers

16
miros92’s answer
miros92, Home Buyer, Austin, TX
Wed Feb 13, 2013
Buy a house through http://www.homepath.com or http://www.homesteps.com. Homepath is Fannie Mae (Gov't Entity) and Homesteps is Freddie Mac also a Gov't entity. All properties listed are REO and they offer 1st look programs which means the first 15 days of the listing is restricted to owner/occupants and day 16 it opens to investors. You can buy a home for as little as 3-3.5% down because they pay 6% of offer price for closing and prepaids.
0 votes
Connie Fitzg…, Agent, California, MD
Mon Feb 18, 2013
Jeremy, this is a great question! If you have heard that buying a foreclosed property is next to impossible as a buyer, it may have been from someone who has had bad experiences in the past. I have sold foreclosed homes to many buyers of mine who were thrilled with the great deals they received and are loving their new homes. Because foreclosures are hot properties these days, you can expect to be up against a lot of competition, but in the long run, the best way to purchase this kind of home would be to sit down with an experienced Real Estate agent for a consultation to discuss the type of financing you may need to purchase a particular home, and all the ins and outs of the buying process of foreclosures. Don't lose hopes! If you like something enough, speak with a recommended agent with great experience in the area you are interested in and go for it! Best of luck Jeremy :)
1 vote
Perry Hender…, Agent, Austin, TX
Mon Feb 11, 2013
Buy them when they go to the marketplace. There are still great deals to be had. Its just more complicated when bought at the courthouse steps.
0 votes
Claire McInt…, Agent, Austin, TX
Mon Feb 11, 2013
Hi Jeremybanks1,

Buying an REO /Foreclosed property can be a little more involved and the banks can be slow to respond. But don't give up. It may take persistence. I have submitted REO offers behind others but ended up getting the property for my client by being persistent and patient. Also, by negotiating with the bank on repairs required to make property livable.

You must be careful about the condition of the property. A foreclosed home with deferred maintenance can be a money pit. An area with foreclosures has downward pressure on other properties in the neighborhood. So you may be better off buying a non bank owned property with good upkeep.

As an Architect, Broker-Realtor, Builder, I offer a unique comprehensive service. I can help you evaluate properties value and remodel/repair costs.

Claire McIntyre, Architect / Real Estate Broker / Builder
512 699 9912
MMI McIntyre Associates
Real Estate Brokerage
http://www.mmirealestate.com
claire@mmirealestate.com
McIntyre & McIntyre Inc
Architecture / Engineering
Project Management
http://www.mmibuildings.com
0 votes
JOSEPH E JAR…, Agent, Austin, TX
Mon Feb 11, 2013
Jeremy, most of the time buying a foreclosed or REO property is not much different than buying a typical resale home. And quite frankly, most buyers think a foreclosed property is a much better deal when it is actually not. As foreclosures happen in a neighborhood, they bring down the price of almost every home, and a well cared for property that is not been foreclosed on is typically a better deal than an REO or a foreclosed property. When an owner knows that their property is going to be foreclosed upon, they typically do not do any routine maintenance and the property is neglected and is often in very poor condition compared to a property that has pride of owner ship.

If you are not yet working with a Realtor, I would be happy to speak with you and discuss assisting you as your buyers representative. I do not charge anything for my extensive services, and have very successfully found properties at the same price as a foreclosure, yet in much better condition needing much less work.

Feel free to contact me and I'll be happy to try and assist you!

Joe Jarusinsky, Realtor/Master Instructor, Keller Williams Realty, Austin's #1 Real Estate Company, Ranked #1 by Buyers and Sellers (JD Power & Assoc. 2012) Call 512-261-4415
0 votes
Lisa Salinas…, Agent, Round Rock, TX
Mon Feb 11, 2013
I am not sure why you think it is next to impossible, but it definetly is not. If you are an occupant/owner you get first bids. If you are an investor, you do have to wait a little longer.
Each company has their own guidelines, and for some companies like banks, they don't care.
Here is my blog about buying foreclosures.

http://www.trulia.com/blog/lisa_salinas-gruver/2011/07/forec…

Lisa
0 votes
Janet Nation,…, Agent, Baldwin, NY
Mon Feb 11, 2013
Jeremy,
I have to agree that is it almost impossible. In my market place foreclosures are difficult for the average Joe to purchase. The primary problem, as I see it, is with non cooperating listing agents that specialize in this type of inventory, and do not want to co-broke in anticipation of a quick sale and keeping all the commission to themselves. They have their own connection of investors that they can call in advance when an new opportunity presents itself. The investors know how to find these agents. They take them out for lunch and establish relationships. You better have all cash or lots of cash to stand a chance in hell to compete for these homes.

Janet Nation, CBR
Sailing Home Realty
Direct: 646-321-9649
Office: 516-377-4760
Licensed Real Estate Salesperson
http://www.jnationproperties.com
0 votes
John Crowe, Agent, Austin, TX
Mon Feb 11, 2013
Nothing is impossible. Clean offers work best, all cash will make a big difference. I'm assuming you mean bank or investor owned, through the foreclosure process, not anything leading up to it.

Best, John

John Crowe, Broker
Keller Williams
Web Reference:  http://www.crowehomes.com
0 votes
John Walin, Agent, Libertyville, IL
Mon Feb 11, 2013
Fannie Mae has first look initiative to give people that want to live in that house first dibs on buying it. After 15 days investors can write offers, but before then buyers as primary residence get first shot. Short sales are a waste of time unless bank has approved the asking price as acceptable so the first person to come in with that number will be fast tracked to approval. otherwise stay away from short sales, too many sellers faking hardships and trying to hide money from the bank to not have to bring any money to closing.

If you like my answer, thumbs up and best answer me, thx!.
0 votes
Steven Nusin…, Agent, Austin, TX
Mon Feb 11, 2013
Buying a reo/foreclosure is competive, but it is not impossible. The same thing with short sales. However, they both require some patience. You can expect to complete extra paperwork, and you can also expect not to hear back right away.

If you are patient, the deal can make a lot of sense. If you are looking for your homestead with a set time frame to move, distressed sales is not the way to go.

If you would like the current inventory of distressed sales, please feel free to contact me anytime.


Steve Nusinow
(512)922-7588
0 votes
Ronald Culli…, Agent, Austin, TX
Mon Feb 11, 2013
Jeremy, I don't know why you think it's impossible. It can be trying and difficult at times, particularly short sales, but it is a process that just takes time in most cases. The biggest difficulty I see now, is that the banks/lenders seem to be overpricing their foreclosures and then taking too long to respond to valid offers that reflect the condition of the property as well as the market realities in the Austin area.

If you're looking for a foreclosure, then contact me or another agent experienced in the foreclosure/short sale process and discuss what you're looking for, where you want it, and the amount you are willing to spend. You also need to be prequalified by a lender to ensure your offer sill be given consideration. Submitting an offer without one attached is tantamount to telling the recipient that you aren't serious about purchasing a home.

Give me a call or E-mail me if you would like some assistance.
Ron Cullinan
Avalar Austin
GRI, CRS, ABR, CLHMS, e-Pro
512-799-3239
austin_realtor@earthlink.net
http://www.austinonlinehomes.com
0 votes
Korby Matsen, Agent, Hawi, HI
Mon Feb 11, 2013
Not sure who told you that but nothing is further from the truth. The only difference between a foreclosure and non-foreclosure is who owns the house. HUD foreclosures can be tough in that your Realtor places your offer online and you have to compete with other buyers. The most important thing is having your financing in place.I have experience dealing with placing offers on HUD homes and foreclosures, so call or email me and I would be glad to help.
Korby Matsen
korbymatsen@gmail.com
512-699-6262
0 votes
How many HUD and foreclosures homes did you close in 2012??
Flag Mon Feb 11, 2013
Thomas Canta…, Agent, Frisco, TX
Mon Feb 11, 2013
Hello Jeremy,

The best way to purchase an REO property is to find a good Realtor that you are comfortable working with. We have access to those properties as soon as they are listed and, in many cases, when prior to the actual listing in the MLS system. Please call or email me if I can be of any further assistance.

Thank you,

Tom

Thomas J. Cantalini
Broker Associate, REALTOR(R) GRI, CNE, SFR, MBA
Century 21 HSK and Associates Austin
9020-1 N. Capital of Texas Hwy.
Suite 210
Austin, Texas 78759
512-797-9167 (cell)
512-264-3446 (home)
tom.cantalini@gmail.com
thomas.cantalini@century21.com
0 votes
Bill Austin, Agent, Austin, TX
Mon Feb 11, 2013
Jeremy,
Reminds me of that commercial ... where did you hear that on the internet? Connect with a local Realtor who is afull timer, not one with another job. It is highly competitive and most go quickly, in a day or a few days. I'd be happy to interview and my services are free to you. Contact me directly if you choose.
Bill
0 votes
vivianne dor…, Agent, Austin, TX
Mon Feb 11, 2013
Not at all, Jeremy, not at all! You can buy a foreclosed property very easily. REO purchases do not differ from any other home purchase, there may just be a couple of more documents to sign. And sometimes they are really a good deal. A Realtor will have access to all REO listings and will be able to show them to you and help you with the offer writing. Contact me if that's what you are looking for. I can help you as I have helped many other home buyers.\\

Vivianne Dordea, Realtor
Sierra Homes Realty
vdordea@austin.rr.com
512-554-5997
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Mon Feb 11, 2013
Whoever you have been speaking with you should maybe stop. Buying a bank owned home is not hard or impossible, in fact it is pretty straight forward. Once the bank owns it and decides to list it there is not a lot of difference in buying in or Mr Jone's house. REO is a bank owned home, the bank now owns it after the foreclosure is over and they can sell it and lenders will give you a loan to buy it. You just need to speak with a lender to see if you can get a loan and then speak with a Realtor who will guide you on the way to do it.

Buying a short sale is a royal pain sometimes, but bank owned can be easy.
0 votes
@Tim, thanks for the reply! What kind of mark-down are we talking about? How would I see the listing a banks owns?
Flag Mon Feb 11, 2013
Search Advice
Search
Ask our community a question

Email me when…

Learn more