Great deals on REO and bank owned real estate...
It’s no big secret that the foreclosure rates in the US are soaring at all time highs, and there is no doubt that it’s a GREAT time to buy properties that have been taken back by banks, otherwise known as HUD properties.
But the problem you might face is that these banks are so overwhelmed with these properties right now, that their REO (Real Estate Owned) departments don’t have the luxury of talking to everyone that is interested in buying one of their houses, so they tend to do one of two things:
1. Find an exclusive Realtor in each area that they have houses in, and let them handle the process of liquidating their REO properties
2. Move all the properties to another entity so they can get them off their books and let them handle the process of auctioning them off.
The problem with the first one is that once the properties gets into the hands of a Realtor, then you lost the opportunity to get it at a discount. Even though they are loaded with properties, they are forced to list them at 80% of the value of the property, and that’s not really enough to get us excited.
The second option is a challenge because it’s almost IMPOSSIBLE to get in touch with anyone at these liquidation companies, and eventually those properties will be handed over to an REO Realtor to sell on the market.
So, what I’m trying to say is that there are certainly deals there, but getting in touch with someone before it goes to the REO agent is very difficult. And once it goes on the MLS… its over. Even if you can negotiate a good deal, it’s still not nearly as good as it would be if you could get in a little bit earlier.
Here is how the process generally goes:
- A Lis Pendens if filed when the bank is starting the process of foreclosure
- The court sets a for the property to be sold at the court house to the highest bidder
- The bank sends a proxy agent to the auction to bid up to the full amount of the mortgage balance (and almost always gets the property)
- Within a few weeks of the foreclosure the bank receives the certificate of title (could take longer in some states)
- The bank owns the property and either gives it to a Realtor to sell, or bundles it with a few hundred others and moves them to another company to handle.
So the ideal place to get in on these deals is either pre-foreclosure (after the lis pendens is filed, but before the court house sale), or just after the bank gets the certificate of title (but before it goes to the REO agent).
But how do you do that? It’s not easy, but fortunately for you, you’re not going to have to worry about it anymore…
I just came across this website that focuses on providing you with a comprehensive list of government, and bank seized properties so you can easily locate the deal that is perfect for you. It’s a website, so you can login and just search the records and locate properties in your area that are bank and government owned, and pick up some great buys.
If you’re a real estate investor looking to take advantage of the latest pull back in the housing, you might want to check out the following site:
Click here for seized properties in your area!