how di I find foreclosed properties on my own seems all these agents are keeping these properties for?

Asked by Frank, Michigan Sun Feb 24, 2008

themselves .and out of the public eye is this legal

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smith3gary, Agent, White Lake, MI
Sun Feb 24, 2008
Frank,
How do I find foreclosed properties on your own? First stop is Trulia. Search for homes and select foreclosed. These homes are sent from an FTP feed from RealtyTrac and will include homes from near the Notice of Deficiency through REO homes that have gone through the 180 day (usually more) redemption period after the sheriff auction.

To find homes in Dearborn prior to the sheriff auction you can go directly to the City or Wayne County offices. Lender are required to post a forclosure for 4 weeks.

Usually, homes are not assigned to a real estate professional until the 180 day redemption period after the sheriff auction has completed. Prior to that time, investors can contact the homeowner themselves.

You can choose to go this route, but remember, usually at the Wayne County sheriff auction each home may have added legal fees and costs incurred by the bank added. Also in Dearborn, there will be a home inspection and you will have to post at least a 10 percent bond for estimated repairs noted by the city.

A better route, might be to inquire about short sale homes. Some of these homes may be in better shape, usually are occupied, and therefore may cost less to renovate.

As with any real estate purchase, I suggest hiring a certified home inspector to determine what repairs/problems might cause you problems in addition to a local government home inspection.

Do real estate professionals keep properties hidden for themselves or their friends? I haven't heard of it happening, but cannot swear that it does not happen. Would it be legal? I do not believe that would be legal if they are the listing agent. Michigan law requires real estate agents to declare who they work for at the first meeting and stipulates what duties they have to their client.

As previously stated, an agent can purchase property for themselves. That's why some remarks indicate no commission will be paid to agents purchasing for themselves. Hope that clarifies it for you. Two websites with certified home inspectors are available on the website below.
1 vote
Deborah Madey, Agent, Brick, NJ
Mon Feb 25, 2008
Although I am not in your market area, and cannot speak to specifics of your area.........I can make general comments about NJ and FL.

I am not aware of agents trying to keep properties, either in the foreclosure process, or as a bank owned property out of the public eye.

I have heard of some confusion on the part of the public as a result of looking at foreclosure lists online. When a property appears on a foreclosure list, it does not mean that it is for sale. It appears on a list as a property in foreclosure because there is a legal action. The property owner may seek other remedy to the legal action instead of selling. I have heard of buyers believing that a property on a foreclosure list is for sale, and being skeptical when a Realtor tells them that the homeowners have represented they are not interested in selling.

Once a property is foreclosed and becomes bank owned, there is usually a period of time before the bank makes it available for purchase through their REO dept. Local RE Pros can explain the appropriate waiting periods for redemption, etc. Those vary by area, and only a local RE Pro or attorney can provide these details for you.

It was my intent to simply explain that it is very rare for a real estate agent to withhold info on a property that is for sale and shed some light on some possible sources of confusion or miscommunication.

Please do consult with a local RE Pro for a better understanding of the foreclosure process for your area.
0 votes
Maureen Fran…, Agent, Birmingham, MI
Mon Feb 25, 2008
I market REO properties for banks, and believe me, the last thing I want to do is keep them. They are a LOT of work for me. I WANT other agents to sell them as quickly as they can. As others have said, I am limited by the bank as to when I can start marketing them, even after the redemption period is over. Some banks do not move so quickly.

I am also not aware of any agents keeping their REO listings out of the public eye.
Web Reference:  http://mioaklandcounty.com
0 votes
Melinda J. R…, Agent, Hudsonville, MI
Sun Feb 24, 2008
Frank, when banks foreclose on properties there is a process the banks have to go through before putting it up on the market. I have had buyers who have informed me of houses they have very good reason to believe are in foreclosure. I find out who the bank is, call them and they will let me know which agent they have already assigned that particular home to.

Many times when I call that agent they have not gotten everything that they need from the bank to put it up. Banks do use real estate agents. I have talked to banks before regarding a specific property. I have been told over and over again if it is not on their website it is not available yet to be sold.

I recently listed a foreclosure for a bank. Reality is I knew about it two months prior to it actually hitting the market, but I had to look at the property, tell them what I thought it was worth etc. A very long process. I had to fax them 35+ pages. They eventually signed the contract and it went on the market.

I certainly do not doubt there are agents who purchase properties for themselves because they know what is coming up and put in offers immediately as it becomes available. However, they do have the right to purchase properties just like anyone else. The banks don't care as long as they have a buyer and can get it off of their books.

There are a lot of sites out there with foreclosed properties on them. Some you have to pay for a monthly fee. I am not convinced the fee is worth it, but that is your choice. I tried it myself before. Buyers ask me all the time about foreclosed homes. A buyers agent can find these all day long on the multiple listing service (MLS). This is a service you don't have to pay for either. Just find yourself a good agent that will help you out and pull the listings for you!

I know the market I work has a 50% short sale/foreclosure rate right now. Meaning 1/2 the homes sold are bank controlled. So they really are easy to find. Some sell fast. Even seen one recently have competition with multiple offers in just 5 hours of it hitting the multiple listing service.

I would really suggest finding a good agent that can keep you up to date so you know as soon as new foreclosures that meet your criteria hit the market.

I hope this information helps. Best Wishes to you!
Web Reference:  http://www.gomelinda.com/
0 votes
Gordon Johns…, Agent, Plymouth, MI
Sun Feb 24, 2008
Hi Frank,

A good source to find foreclosed properties in Southeastern Michigan is http://www.MIforeclosureDeals.com If you request a foreclosure list you will also be notified as soon as new properties become available. The Foreclosure Report avaqilable on this site will also help you avoid after closing surprises.
0 votes
Kathy Toth T…, Agent, Ann Arbor, MI
Sun Feb 24, 2008
First of all if you go to google mapping and then real estate, you can get all homes under foreclosure, but as stated below, the owners can redeem these homes within 6 months If you are looking in Washtenaw County, look at : http://www.kathytoth.com/custompages_reports.php?key=b81162

We update this weekly. For myself, I make all foreclosures avaialble to clients. There is no one stop shop for this source....because of where the house is in the foreclosure time line and geographical differences in filing requirements and time requirements.....plain as mud I know. If you want access to short alse which are pre- foreclosure, look at http://www.AnnArborShortSale.com
Web Reference:  http://www.KathyToth.com
0 votes
Michelle Gor…, Agent, East Grand Rapids, MI
Sun Feb 24, 2008
Hi Frank,

Here is a webite you can find HUD homes........in Grand Rapids, they also post on out local MLS, not sure in your area if they do or not.

http://www.clfres.com/

Good luck in your search!
0 votes
Missy Caulk, Agent, Saline, MI
Sun Feb 24, 2008
The ones you are looking at might NOT have gone through the 6 month redemption period. Most banks hire Realtors to market the houses that are ready to go. If a house has not gone through the redemption period the seller can redeem the property back, by paying the fees and catching up on the mortgage.
0 votes
Missy Caulk, Agent, Saline, MI
Sun Feb 24, 2008
Frank, banks hire agents to market REO properties. Some homes that you are finding on your own might be HUD homes that have not gone through the 6 month redemption period in Michigan. Anytime during the 6 months the seller can pay all fees and redeem the house.
0 votes
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