HOW HARD IS IT T BUY A FORCLOSED HOME ,?

Asked by Al, apple valle c.a Fri Jan 2, 2009

WELL AS SECOND TIME BUYERS MY WIFE AND I AND I ARE STILL VERY SCARED TO BUY ANOTHER HOME BUT WE LOVE THE BEACH ..SO I MEAN HOW HARD IS IT REALLY TO BUY A FORCLOSED HOME ?AND IS THE ASKING PRICE ALL YOU HAVE TO PAY ?

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12
Bill Eckler, Agent, Venice, FL
Fri Jan 2, 2009
Al,

Good question.............

Buying a "foreclosed" home can be as easily done as any other normal transaction. But then it can be next to impossible. You won't know which is your fate until you give it a try....

Good luck
1 vote
Tim Kunze, Agent, Huntington Beach, CA
Fri Jan 2, 2009
Al,

I noticed that no one has addressed the last part of your question. In any home buying situation, there are closing costs that are in addition to the purchase price. These include title and escrow fees, inspections, appraisals, lenders fees and, possibly, pre-paid taxes, insurance and interest. You can estimate about 2% of the purchase price.

Buying a short sale requires a great deal of patience. Buying a bank owned (REO) home usually works about the same as buying a non-foreclosure home from the seller. It can, sometimes, take longer to get a response out of the bank due to the fact that they are so overloaded with work at this time.

I've been through all the possible scenarios and can help you through the process. Let me know what it is you're looking for and I'll get started working for you.

Looking forward to hearing from you,

Tim Kunze
714-552-2335
Tim@TimKunze.com
Web Reference:  http://www.TimKunze.com
1 vote
Vivian Young, Agent, Huntington Beach, CA
Fri Jan 2, 2009
Dear Al,
It's easy if you have an experience agent. Buying in Huntington Beach would be a smart move. Start the new year off right and get going this month before you get beat out by everyone else with the same plan!

vivian@campbellrealtors.com
1 vote
Voices Member, , Benton County, OR
Fri Jan 2, 2009
Al, If you read thru the Q&A forum you will find many discussions on this topic. Opinions are varied and different experiences in different areas may help you form an opinion. Perhaps this will also help you begin to form an idea...

http://www.marketwatch.com/news/story/despite-potential-barg…

http://seattletimes.nwsource.com/html/realestate/2008541466_…

http://www.hud.gov/offices/hsg/sfh/reo/reohome.cfm

http://www.trulia.com/blog/frances_flynn_thorsen_srs_e-proa/…

Hope this helps, Dunes
1 vote
Jeremy Lehman, Agent, Garden Grove, CA
Fri Jan 2, 2009
Hi Al, buying a foreclosed home is not always difficult. Certainly foreclosures usually receive more traffic and attention than short sales and "normal sales", but there are many things you can do that make you the most desireable offer to accept. Obviously price would be a main consideration by the bank, but not the only thing that can help you obtain the winning bid. First off, becoming a qualified buyer and proving that to the bank is VERY important. The bank needs to know that this deal is going to close. To do this, you will need to put together some paperwork including a bank statement with proof of funds needed to close escrow, FICO scores for all buyers, and a prequalification letter from a bank for a loan on your purchase, and include this with your offer. Better yet, the sooner escrow can close for the bank the better. Also, removing any contingencies such as inspection and loan contingencies is helpful. The bank is going to shorten the loan contingency to 5 days (usually 17 days), meaning if your offer is accepted, you have 5 days to inspect the home and decide that you will continue with your offer on the home. Some buyers will do a home inspection of their own before they make the offer and then waive that contingency on their offer. My last tip is to submit your offer quickly. Be ready to make your offer as soon as possible. It's a good idea to be well informed about the marketplace so when you view a home you are interested in, you and your agent know what a strong offer price is, and can write the offer now. The most desireable REO's get many offers in the first few days on market. If you don't have your offer in during that period of time, you probably won't get your offer accepted.

I know this sounds complicated, but a good Realtor will make all the difference, and will do most of the work for you. If you need assistance, I will be happy to represent you. Also, you can search all available foreclosures on my website at http://www.YourSoCalAgent.com and can even have them emailed to you when they come on the market.

Happy New Year,
Jeremy Lehman
Century 21 Beachside
Jeremy@LehmanHomes.net
1 vote
Rich Littlef…, , Huntington Beach, CA
Tue Jun 16, 2009
The bank repos that are priced under the market all have a lot of offers on them. I suggest you be ready to make a lot of offers and do a lot of work if you want to get one.
0 votes
Tim Kunze, Agent, Huntington Beach, CA
Sun Jan 4, 2009
Al,

JR mentions one thing that leads me to ask you, "why are you looking for a foreclosed home?" If it's because you think you can get one for pennies on the dollar, then you should pay attention to his comment about his client. My experience has been that most lenders are well aware of the market value of homes on their books. They would like to get them off the books as quickly as possible but they are not willing to simply give them away. Sellers of homes that are not in foreclosure are aware that their competition is foreclosure homes and are, in many cases, pricing accordingly.

One other comment about JR's answer. There are lots of horror stories about foreclosure transactions. I've been through a few myself. However, I've also been through foreclosure transactions that went more smoothly than some "buy from owner" transactions. You can never tell how a transaction will go until you are into it.

Finally, in Huntington Beach, there are currently 182 homes on the market (in the MLS) that are in some type of foreclosure status. Of these, 138 are short sells, 41 are bank owned (REOs) and three indicate some type of foreclosure status but the listing agent doesn't seem to know what to select so they're somewhat ambiguous as to their actual status. Of course, there are probably some listings that the agent isn't aware that there are statuses for foreclosure properties.

One note for Michael Barron: You seem to have posted your answer three times. You should delete two of these.

Let me know when you're ready to proceed, Al.

Tim Kunze
714-552-2335
Tim@TimKunze.com
Specializing in YOU and striving to be YOUR #1 Realtor!
Web Reference:  http://www.TimKunze.com
0 votes
J R, , New York, NY
Sun Jan 4, 2009
Asking price is NOT all you will have to pay, the bank will counter your first offer HIGHER than asking. The latest foreclosure I negotiated was ridiculous. Between the bank, and my buyer who thinks even a bank is a desperate seller, it was a comedy of errors. The bank did not get back to us quickly and it did not seem they could keep track of anything. One of their counters was higher than they'd previously countered us. People think they can get something for nothing, and it isn't surprising, because people getting something for nothing is what got us into this mess to begin with. Oh and there will probably be more than a few other buyers bidding along with you for the same property. We had one same man bidding with us on a couple.
0 votes
Michael Barr…, Agent, Irvine, CA
Sat Jan 3, 2009
Hi there Al, Great Question and many people are curious about this. There is no great secret about buying a foreclosure if you have professional representation. There can several offers on the really great properties so timing is very important. Like any home you need to do your homework and be diligent about the process to be successful. There are many advantages and disadvantages with buying a foreclosure and you really need to understand the differences. Rely and work with a professional is a good rule of thumb

Hope this helps
Michael Barron
Realtor/MBA/ REO Specialist
First Team Real Estate
0 votes
Michael Barr…, Agent, Irvine, CA
Sat Jan 3, 2009
Hi there Al, Great Question and many people are curious about this. There is no great secret about buying a foreclosure if you have professional representation. There can several offers on the really great properties so timing is very important. Like any home you need to do your homework and be diligent about the process to be successful. There are many advantages and disadvantages with buying a foreclosure and you really need to understand the differences. Rely and work with a professional is a good rule of thumb

Hope this helps
Michael Barron
Realtor/MBA/ REO Specialist
First Team Real Estate
0 votes
Michael Barr…, Agent, Irvine, CA
Sat Jan 3, 2009
Hi there Al, Great Question and many people are curious about this. There is no great secret about buying a foreclosure if you have professional representation. There can several offers on the really great properties so timing is very important. Like any home you need to do your homework and be diligent about the process to be successful. There are many advantages and disadvantages with buying a foreclosure and you really need to understand the differences. Rely and work with a professional is a good rule of thumb

Hope this helps
Michael Barron
Realtor/MBA/ REO Specialist
First Team Real Estate
0 votes
Michael Barr…, Agent, Irvine, CA
Sat Jan 3, 2009
Hi there Al, Great Question and many people are curious about this. There is no great secret about buying a foreclosure if you have professional representation. There can several offers on the really great properties so timing is very important. Like any home you need to do your homework and be diligent about the process to be successful. There are many advantages and disadvantages with buying a foreclosure and you really need to understand the differences. Rely and work with a professional is a good rule of thumb

Hope this helps
Michael Barron
Realtor/MBA/ REO Specialist
First Team Real Estate
0 votes
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