what is the best way to buy a foreclosure home in atlanta? work w/ the banks direct ?

Asked by Cm, Atlanta, GA Sat Jan 12, 2013

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Thom Abbott, Agent, Atlanta, GA
Sat Jan 12, 2013
Cm...When a home or condo is listed For Sale (unless it's a For Sale By Owner FSBO) it's listed with a real estate agent. THAT real estate agent represents the Seller and is charged by state law in protecting their interests via a Listing Agreement.

As a Buyer, you want the SAME representation to make sure YOUR interests are protected. When you work with a real estate agent, you may, or may not be asked to sign a brokerage agreement. By signing such an agreement with an agent, it is their duty to work on your behalf to represent you. (Of course, such an agreement coves many facets of the real estate transaction and YOUR duties as well!)

Having this representation costs you....NOTHING....sort of. The real estate agents fee is paid for by the Seller (in this case the bank that owns the property you are purchasing.) On the flip side, by NOT having an agent represent you, you could be "leaving money on the table" by missing out on items that your agent could negotiate for you.

You wouldn't go to the dentist's office, to sit in the chair and use the tools to drill on your own teeth, would you?

Have Buyer's representation by having a real estate agent work for you!
4 votes
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Sun Jan 13, 2013
To make an offer on a property, you should be represented by a Buyer’s Agent. The Buyer’s Agent will work on your behalf throughout the transaction. This is very important since the Listing Agent represents the seller.

When it comes to REO properties, you must wait until the property is actually listed for sale. REO departments of mortgage companies will not talk to or entertain offers from individual buyers. All offers to purchase an REO property must be submitted by the Listing Agent assigned to the property.

Inventory levels are very low right now. Due to this, many homes are seeing multiple offers. Some are getting as many as 10-20+ after just a few days on the market. Buyers who insist on low ball offers are not seeing much success right now.

The seller of the property will want to make sure that you are qualified to purchase the property should your offer be accepted. Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
1 vote
Jeffrey S Sp…, , Atlanta, GA
Mon Jan 14, 2013
You definitely want to be pre-qualified with a respected lender and physically have a prequal letter in hand. Once you are pre-qualified you should use an agent because the seller typically pays Realtor fees. Realtors are very qualified in this field and can help you find properties which are not yet listed, so you can be first in line. I would be happy to help you in any financing needs. You can still take part in our purchase power program. Visit my website or call me for details.

Jeffrey Spatz
GMAC Mortgage
1170 Peachtree Street NE, suite 1200, office 1230
Atlanta, GA 30346
404 309 4936

0 votes
Morgan Campb…, Agent, Valdosta, GA
Mon Jan 14, 2013
The best way to purchase foreclosed homes is to get pre-qualified for a mortgage and find a buyer's agent to represent you. The best deals on foreclosed homes usually don't last long and putting in an official offer requires a pre-qualification letter attached to the contract.

Step 1: PURPOSE. What is your purpose in purchasing foreclosed properties? Are you looking for a primary residence or are you interested in purchasing homes as an investor? I provide loan programs for borrowers purchasing homes as a primary residence, second home, and investors.

Step 2: PRE-QUALIFICATION. Work with a lender to decide what is the best loan program for you based on your goals and obtain a pre-qualification letter.

Step 3: REPRESENTATION. Find a buyer's agent that you can trust to represent you. Share your goals and pre-qualification letter with your agent so that they can help you find properties.

Check out my personal website to take a look at the loan programs I offer! http://www.ValdostaMortgages.com. If you have any questions regarding mortgage financing, the home buying process or credit consultation, please feel free to contact me via email or phone!

Morgan Campbell, Mortgage Banker
Envoy Mortgage
Email: mcampbell@envoymortgage.com
Mobile: 229-563-5903 (You can reach me 7 days a week from 8am-10pm EST)
Web Reference:  http://ValdostaMortgages.com
0 votes
David Herren, Agent, Atlanta, GA
Sun Jan 13, 2013

Banks are swamped with real estate they have foreclosed on, they cannot possibly deal with every individual buyer, so they contract with real estate agents who list them for sale. Those agents represent the bank, you should have an agent, a Realtor, to represent you too. In most cases it will cost you nothing - their fee is paid out of the listing agent's commission, which is negotiated up front with the bank.

It has been stated below, but it cannot be repeated enough, the inventory of foreclosed properties is is very low compared to the number of buyers chasing them. This means there are often multiple bids and sometimes the winning bidder pays more than they should. Among other things, a Realtor can help you determine the market value for a property you want to buy, so you know if, and by how much you might be over paying.

All of this begs the question, why do you want to buy a foreclosure? There may be better ways to meet your real estate objectives.


Dave Herren
Best Atlanta Properties
0 votes
Lee Taylor, Agent, Decatur, GA
Sun Jan 13, 2013
Are you just buying one house or a few hundred?

What exactly do you seek to purchase?


What's your price limit?
Web Reference:  Http://intowninsider.com
0 votes
Bruce Ailion, Agent, Marietta, GA
Sat Jan 12, 2013

Few if any banks will deal directly with you FHA, VA, Fannie Mae, and Freddie Mac represent 75% or more of all foreclosures. They are all represented by agents, you should be too. Much of my career I represented banks in over 2500 sales. Today I primarily represent buyers purchasing from banks. A good agent will know the ins and outs of buyer from a bank and can assist you. In November 2011 my most recent numbers there were 800 new foreclosed listing in the MLS in November 2012 there were just above 200. With a 75% drop in new inventory and a 10 times increase from buyers, a foreclosure very will might not be there that meets your need and you may be out bid. The last offer I presented for a client had 51 competing offers in 4 days on the market. It can be very challenging to buy today.


Bruce Ailion,
RE/MAX Greater Atlanta
An Atlanta Real Estate Expert Serving Clients Since 1979
RE/MAX Hall of Fame – REALTOR Phoenix Award
Certified Residential Specialist
Certified Real Estate Broker
Accredited Buyers Agent
MS Real Estate and Urban Affairs
Certified Distressed Property Expert
Certified Internet Professional
203K Certified Specialist
2050 Roswell Road
Marietta GA 30062
404-978-2281 Direct
404-386-3682 Assistant Robin
678-760-6266 Buyer’s Agent Adam
770-973-9700 Office
0 votes
Cheryl Taylor, Agent, Atlanta, GA
Sat Jan 12, 2013
Hire an Realtor. Our commission is paid by the bank. Foreclosure properties in Atlanta still are great bargains even though our inventory is low. The foreclosure home has the listing agent working for the bank, do yourself a favor and have a agent work on your behalf.

Cheryl Taylor
Solid Source Realty
404-644-8082 direct
0 votes
Hank Miller, Agent, Alpharetta, GA
Sat Jan 12, 2013
You saw the advice about getting an agent, but why specifically a foreclosure? You're not going to get any bargains and will likely be in a multiple offer situation. http://hankmillerteam.com/2012/09/04/foreclosure-and-bargain…

Add to that limited title you'll receive, hidden/undisclosed issues and area trends - all concerns especially if you plan on reselling or flipping it.

Focus on a good price in a good area, that's the smart move, the rest is HGTV nonsense.

Web Reference:  http://www.hmtatlanta.com
0 votes
Katya Cooper, Agent, Atlanta, GA
Sat Jan 12, 2013
Get a Realtor. its free for the buyer

Katya Cooper
Keller Williams Realty Atlanta Perimeter
Realtor ®
Cell: 256-565-6082
Email: katya@kw.com
0 votes
Ralph Woolfo…, , Atlanta, GA
Sat Jan 12, 2013
The banks will not work with you directly. The foreclosure / short sale process has gotten very tricky due to lack of inventory in Atlanta, let me help you understand the ins and outs of the process.
0 votes
Suzanne MacD…, Agent, Morristown, NJ
Sat Jan 12, 2013
Find a good realtor. The banks will not work with you directly. Foreclosed homes and short sale homes only become available for purchase when they are listed with a realtor, so it is really the only way and you will be happy to have the advice and guidance of an experienced realtor. And it won't cost you a penny, the commission is paid by the bank.
0 votes
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