BluefoxToday blog : Buying foreclosures the prudent way

Buying foreclosures the prudent way

Las Vegas real estate market is bursting with bank REOs, real estate owned in industry talk, and many of these are listed at prices that were unthinkable just a few months ago. Single-family houses, condominiums, townhomes, they all are represented in this one large housing bazaar teeming with activity in our desert valley. Of course there are regular listings as well that could offer good value, but the REOs are the hot ticket right now.

To make it easier to snap up one of these REOs, following some basic rules will usually yield the right result.

Start your search on the Internet. Real estate agents have websites that list REOs and then there are national companies like Foreclosures.com and RealtyTrac.com where by paying a monthly fee you can scour their extensive databases. 

While busy with the first step, get yourself pre-approved for a mortgage with a reputable lender. When the right property comes along, there often is no time to start looking for the home loan consultant and go through all the required paper work. By the time all that is done, the future dream home could be sold to someone else. Act early on this one.

Engage a trustworthy real estate agent to work with. Lenders generally use them to list their REOs and pretty much as a rule won't even deal with individuals. Auctions have been quite a bit in the headlines lately, but those are for the pros who know the market well. Besides, a large chunk of auction sales reportedly never close for one reason or another. 

This last point is very important. Repair costs of a REO can be more than you can stomach. Maintenance is low on the priority list of people facing mortgage foreclosure and upon leaving they can also take with them an appliance or two, among other valuable things. To make the purchase viable, repair costs need to be accounted for in the bid price.  

Happy hunting.

 

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 4 commentsEsko Kiuru • June 22 2008 01:08PM

Comments

Esko I am glad that you added that last point.  Some of these property have been out right vandalized by the homeowner being foreclosed on, to the point of ripping out toilets and fixtures.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 10 years ago

Esko,   I'm a HUD approved Broker, and I always make sure to tell prospective buyers the advantages of buying a foreclosure, and some of the pitfalls and unusual requirements. The average buyer does not understand the differences in the offer and acceptance process.  

Posted by Mary Jo Schaffer, Bandera Texas Real Estate (Sweetheart Realty) about 10 years ago

George,

Buyer be aware for the last point.

Posted by Esko Kiuru about 10 years ago

Mary Jo,

Buying foreclosures isn't as simple as it may sound.

Posted by Esko Kiuru about 10 years ago

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