Little hypothetical here: say you knew of a house that recently went into foreclosure, but was not yet relisted by the bank. Is there a way to explore purchasing that house before it gets listed? Is there any advantage to doing so? How would one go about it?
TIA
Posts: 221 | Location: Arizona | Registered: Mar 14, 2007
Many times there is an agent assigned to the REO after foreclosure even though the house isn't on the market yet. He/She is doing things like doing the trash out, getting the locks changed and getting the house ready for market. I'd drive by and if you ever see any activity in the house ask them for the person who hired them, it will most likely be the agent and you can start the conversation. Or if you know an agent have them check the MLS, it could be "on" the MLS and represented but hidden from public view. You could also mail a letter or post a note on the house and see who calls you back.
The houses can sit a long time while asset managers get their stuff together to get a price on the home. They are pretty swamped at the moment.
It probably depens on the bank and how many foreclosures they have on hand. Some banks have probably become very realistic if they are swamped with them. Others want to believe that is it still 2005 and will offer you a price that no sane person would jump at knowing that it will more than likely be down another 20 percent at the end of the year. I guess the question is how badly do you want this house and at what price? Once you have establed that, call the bank and make an offer. I would take 15 percent off what I would estimate as reasonable. They can do what any seller will do, reject, negotiate, or accept. If they reject, try again at 10 percent lower in six months, provided the property hasn't been vandelized or neglected in the meantime. That would, of course, take my offer down even more
The houses can sit a long time while asset managers get their stuff together to get a price on the home. They are pretty swamped at the moment.
The asset managers will probably be chasing the market down as some sellers and agents are on this board. There is very little incentive for anyone not dealing with their own money to get serious about unloading stuff even when the market is coming down around their ears.
The asset managers will probably be chasing the market down as some sellers and agents are on this board. There is very little incentive for anyone not dealing with their own money to get serious about unloading stuff even when the market is coming down around their ears.
In my local area, So Cal, the performance of asset managers is inifinitely better than any other group in the market. They order a few BPOs (Broker Price Opinions, real estate agents doing CMAs for 30-50 bucks a pop) and get a market price.. and depending on the local market conditions if the home isnt selling within 30-60 days they cut the price. Way more realistic as far as pricing and the highest selling group above even short sales (which are a different dept. at the servicers), new homes and vacant homes. Resale homeowners are by far the least likely to sell their home in my locale. For the simple reason that they are the least realistic on pricing.
The REOs will have monthly or even weekly reductions until they hit the right price and someone bites. It's not unusual to see the same model in pretty good shape selling for 25% less then the short sales.
Thanks, you guys. The agent who had it listed knew it had gone into foreclosure, but didn't even know the lock boxes had been changed or how to get in the house, so I doubt she'll be much help . [so much for the hypothetical]
I'm not at all sure how this works, but I thought that if we contacted the bank before the house was re-listed, we'd save them the commission and might get a better price. My guess is though that, since NOTHING is selling in this neighborhood, in fact 6 houses on the street are listed (4 in foreclosure), it might be better to just let it go on the market and let the downturn work on it.
Not at all married to the idea of this house, but at the right price, well...
Posts: 221 | Location: Arizona | Registered: Mar 14, 2007
Once it hits the MLS, if it's too high, let it sit and season a little and the bank will be easier to deal with. If someone buys it at the high price, enjoy the new comp and wait for once of the other 4 on the street to begin the big reductions.
Once it hits the MLS, if it's too high, let it sit and season a little and the bank will be easier to deal with. If someone buys it at the high price, enjoy the new comp and wait for once of the other 4 on the street to begin the big reductions.
Originally posted by Daisy in AZ: Thanks, you guys. The agent who had it listed knew it had gone into foreclosure, but didn't even know the lock boxes had been changed or how to get in the house, so I doubt she'll be much help . [so much for the hypothetical]
Just to be clear, the agent I am talking about is the one assigned by the servicer to the foreclosure and not the one who might have held the listing previously to foreclosure. That is the one to try to contact. In many cases they are assigned immediately after the trustee sale if the servicers have their stuff together.
You could also try googling the address, you'd be amazed what you find out sometimes. Another approach could be signing up for a foreclosure service free trial (forclosure.com, realtytrac.com) they might have the contact information (make sure to cancel before they start charging).
I do not know Arizona rules. The way it is handle in my city within the last couple of years is that you cannot contact the bank and buy it from them because they do not have a real estate dept anymore that can close the deal.
I recently purchased a reo that I watched for a year go through the process. Because of my job I can research and find out how much the house was forclosed on and the final judgement against the property.
After it is forclosed they do a sherrif sale if it is not brought at the sherrif sale it is brought back by the bank and their lawyers have it then. The bank will not let you bid at the SS for less than what the bank is owed. So you will not get a deal because if you buy it at that point it is up to you to pay any back taxes plus the mortgage amount owed.
After the sherrif sale they clear all taxes leins etc. Turn it over to the a Realtor and this is where it gets tricky they say "they do comps and suggest to the bank what the house is worth" but they do not do the comps on the condition of the property. The realtor is looking at their profit.
The property I brought was listed "as is" I had a home inspection and had a contractor come in and give me an estimate to bring everything up to code not remodel. This was done one month after telling the realtor that the property was in poor condition and the price they were asking was out of line. He told me my offer was taken to the bank and it was refused. I sent pictures, copy of the home inspection, and the contractor's estimate for repair to the bank. I got the house for what I offered. Suddenly the bank realized they were not fully informed. It took one month to have the price lowered by 50 thou.
The only way I have seen any real deals in my area is if they sit for 8-9 months. Then they are lowered by 5-10 thou a month.
This message has been edited. Last edited by: Cinta,
