Tuesday, September 7th, 2010 at
4:28 pm
I see many houses on-line where they ask you to make an offer before they get foreclosed on but their listing price is often higher than of the comarables…what is the deal? and if they actually get foreclosed on, how much can you negotiate with the bank, let’s say on a house that is currently listed for 500k? From what I red online the bank will try to recoup the amount of the loans secured by that property, but usually those loans total more than the house is worth on today’s market…I am trying to find out, if anybody knows, how much of a price reduction I could get buying an REO or a foreclosed property.
thank you!
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Tuesday, September 7th, 2010 at
4:27 pm
I put in an offer on a house and, the next day me and, my mother drove by the other realator had open house signs for the house. He was inside and, had only brochures of the house I just went into contact with. I didn’t tell him I was the purchaser, I was to upset. I called my realastate broker and, he new about it saying he can do this as long as he tells you that there is a sell pending. It was an ACTIVE sale not, an REO or SHORT SALE. I am concered about this. I’ve searched the Metro List numorous times and, never have I seen a pending sale as this. I’ve already forked out $400. on the appraisal and, given the title company a check of 1% of the purchase price. Can they legal do this to me. I am a first time home buyer that is discusted and, feeling discouraged. I am wondering if I should pull out of this home purchase because of this.
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Tuesday, September 7th, 2010 at
10:28 am
First of all, I live in California. My budget for buying a home is $190K (I will be going FHA) and I have been constantly putting offers in for more than a year now. My budget pretty much only gets me to see REO/Foreclosures and Short Sales. I have been turned down for more than 60 homes (mainly due to investors paying cash or because I am asking for the Seller to pay Closing Costs).
Here is my situation. We FINALLY came across a “normal” Home Sale. Seller listed it at $198K and last Tuesday we put in an offer for $195K and asked Seller to pay $5K for Closing Costs. The MLS listing came out this same day. Seller countered us on Saturday and we responded with an Acceptance of the Counter Offer within 2 hours agreeing to ALL terms the Seller had asked for (they didn’t want to pay any Closing Costs). We waited until yesterday (a Tuesday- a week later after we submitted the first Offer and several days after the Counter acceptance was turned in) and they said they decided to go with another offer.
My question: Is this allowed? They countered us with specific terms and we accepted ALL terms within 2 hours on a weekend. They said they accepted another offer yesterday. If they countered us and we accepted, can they really go an accept a brand new offer that was turned in AFTER we accepted their Counter?
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Monday, September 6th, 2010 at
4:25 pm
Not sure if that was the best way to phrase this question but ill explain: The house in interest is a REO property. Originally, we offfered on the house, it was accepted, we signed our portion of the addendums, and when we were waiting for the bank to sign their addendums the listing expired so apparently our offer was void. Then, we contacted the new listing realestate company, and made an offer, while we were waiting on the addendums to come back they called us and said that they did not want to do our fha 203k loan, and would drop the price by 10k if we did not. So we did what we could, and found a new route and the house would not be shown to any other interested parties. Then we get a call that the bank has recieved some cash offers during this time from people who never even got into the house. Since the cash offers were less but close to ours, they want to know our highest and best offer. What should i do? Is this even legal? Does it violate any fair housing laws or anything of that nature?
any help would be great!
Thanks
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Monday, September 6th, 2010 at
4:35 am
This house was listed yesterday and is a bank owned home through Wells Fargo in Riverside County, California. It is listed at $222,000, about $33,000 under current market value. We put an offer in at $228,500. It also says in the Agent Remarks that there is a $1000 bonus if under contract by 6/30/2008 and escrow closes. We are also pre-approved through FHA!!
I know the banks are overloaded with REO’s, but is there any chance they want to unload this house quickly based on the fact they are giving a $1000 bonus if under contract by 6/30/2008??
Any advice is greatly appreciated! As we have been looking since February. Pretty much all Short Sales except this one.
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Sunday, September 5th, 2010 at
4:26 pm
Arizona foreclosure listings will provide you with area properties which are
in foreclosure. However, did you realize that there are several stages to
foreclosure, and each stage has its own separate rules to follow. The
world of foreclosures has its own language, in this article we will attempt to
discuss the words most commonly used when dealing with foreclosures
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Sunday, September 5th, 2010 at
4:25 pm
Benefits to the Seller of the property
The seller wins by avoiding foreclosure by selling their home before the foreclosure auction even if they owe more than its worth.
If sellers were to sell their home foreclosures the traditional real estate transaction with a realtor without a short sale, typically they would have to bring tens of thousands of dollars to the closing to sell their own home. This is not an option for them because they are in foreclosure and don’t have any money.
Sometimes they are able to get some moving money out of the deal where they would get nothing if they lost the home back as a bank foreclosure. A bank foreclosure is also known as an reo. Benefits to the Lender
The Lender wins because they are getting some of their bad debt paid off and are decreasing the amount of foreclosures and reo properties they have.
You see, when a lender has delinquent loans on their books, it affects how much money they can lend out in new loans because they are regulated by the FDIC. So the more bad loans they can get rid of, the more good loans they can then go ahead and acquire. This is why they have the Loss Mitigation department to help the bank liquidate their foreclosure listings.
Also by taking a home to auction, the lender will lose 35-50 thousand dollars.
So it’s a huge cost savings to them to do short sales before the auction occurs. Benefits to you the Investor
The investor wins because we get to make a great profit on a home while offering free foreclosure listings to our buyers, most of the time in the area of 25-200 thousand dollars, that we have invested little money in, have not had to put our credit at risk and we don’t have to rehab the property.
Most of the time we are able to get these properties at 60 cents on the dollar and they are in great condition. I have acquired foreclosures through short sales in bad condition for as low as 28 cents on the dollar. That means I was able to acquire a home for 28 cents on the dollar by doing a short sale with the lender. You can’t buy hud homes for that much of a discount.
The information of how to short sale a home benefits everyone:
It benefits Realtors because in today’s market Realtors are getting tons of listings with no equity and they can turn these dead leads into strong commission checks that they wouldn’t get without knowing how to help their sellers out with a short sale.
It benefits investors because they are getting a lot of leads now from sellers that owe more than their house is worth. The only option for them is to do a short sale.
And the short sale business for investors is awesome in this market because you don’t have to make payments on the house, you don’t have to make repairs to the home, you don’t have to put your credit on the line to do the deal and you make a huge profit just for structuring the whole deal. The best part is you can control large luxury style homes while generating exponentially more profit than starter homes without any risk. You make ten times more profit on a luxury home than a starter home and its that same amount of work and still no risk.
Home Foreclosures are at an all time high and it is your time to get in the game and help out some needful homeowners while make a boatload of cash along the way. Short Sales need to be a part of every investor’s real estate investment strategy in today’s mortgage and housing market.
To get a Free Loss Mitigation Training Course, Go Here What is a short sale
Dedicated to Multiplying Your Income,
D.C. Fawcett
The Business Building Coach to the Foreclosure Industry
Sunday, September 5th, 2010 at
10:26 am
Pre-requisites of a Foreclosure Investment
Investing in real estate is the most popular and the most effective way to earn money, throughout the world. If a person is thinking to get started with foreclosure investments then it is required to have a detailed knowledge about it and walk in prepared to meet the success with foreclosure investment. A small bucket of factors should be known that will make the difference between experiencing the thrill of success by investing in foreclosure, or the agony of rout in foreclosure. You need to have the right industry knowledge, upward market trend and adequate cash financing.
Stepping up one on one
As the first step it is safe to behold the laws concerning to the buying and selling of the property in the town where the property is planned to be purchased. Avoid being in the middle of someone’s legal headaches. In addition to accessing accurate legalities for the location of where the purchase is made, there are some other considerations also. Some legal foreclosure proceedings allow the borrower to reclaim title and possession of their property. This is called right of redemption. Thus being aware of critical clauses and having expert legal advice for your state or location is advisable.
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Saturday, September 4th, 2010 at
4:26 pm
A foreclosure is a legal proceeding taken by a bank or mortgage lender against a homeowner who has defaulted on their mortgage loan. There are several steps in the foreclosure process; pre-foreclosure, auction, and bank owned. It is possible to buy homes during each of these foreclosure steps if you know where to find them and who to contact.
Pre-foreclosure (NOD, LIS)
A pre-foreclosure is just what it sounds, the time period between when the bank decides to foreclose on a property and when the actual foreclosure takes place. When the bank decides to foreclose on a home, it is required to notify the homeowner of their intent. The notification that is sent is called a Notice of Default (NOD) or a LIS Pendens. The NOD or LIS also has to be filed with the County Recorder’s Office. The bank is not allowed to release this information to investors, however, but investors are more than welcome to search the records at the Recorder’s Office and find out who is in pre-foreclosure. Investors will then contact the homeowner and try to strike a deal with them to purchase their property before it is actually foreclosed on. These deals are typically attractive to a homeowner because they want to avoid having a foreclosure on their credit.
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