Fortunately, there are people who are focused on helping you through the process of buying bank-owned properties. These are agents who specialize in the ins and outs of REO properties.

When investing in REO properties, look for agents who will:

Explain to you how the foreclosure process works in your area in layman’s terms.

Different states have different laws regarding foreclosure sales. When dealing with REO homes, the best agents will know the basic laws and have contacts in real estate law who are readily available to answer any questions and address any nuances that may arise. Because the process is so different from a standard real estate transaction, not every real estate agent can get access to REO properties to sell them. Agents experienced with bank-owned properties can get their hands on lists of REO homes for sale (or that will soon be for sale) that other real estate agents can’t get.

Arm you with the tools you need to find the best REO properties to suit your needs.

Agents who specialize in bank-owned homes also have access to online REO listings, bidding platforms, and other real estate services to help you find the most listings and the best deals in REO homes. You can see photos and get other detailed information about REO homes for sale without having to drive to each and every property. There are also applications for handheld devices, as well as tools and processes that technology savvy agents will use to provide you with information on REO properties as quickly as possible.

Help you get as much information as possible about the condition of the REO home for sale.

An official inspection might seem like an obvious “must-do,” but quite often, banks will try to sell an REO home as-is and won’t allow an inspection.  A good agent will work to negotiate on this point, or at the very least, allow you to bring an inspector with you during a visit to the home before you sign any paperwork. An inspection is critical when purchasing a property that has been foreclosed on, because the previous homeowners (or renters) may not have had the money or the inclination to keep the home in good condition. If the home is occupied upon foreclosure by the previous homeowners, tenants, or squatters, an inspection may not be in the cards.

Provide information about the history of the REO property for sale, as well as the neighborhood in which the REO property is located.

When it comes to REO investments, the best agents will provide information about the percentage of other homes in the neighborhood that have been foreclosed on or are in pre-foreclosure; data about when homes have sold and for how much; the condition of homes in the area, etc. This may involve reaching out to neighbors and asking questions, and is especially important if you’re unable to obtain an inspection. A good agent will also find out if there are any outstanding taxes, HOA dues (when applicable), or other liens on the property.

Educate you on national and local laws regarding current occupants of the foreclosure property.

One of the challenges of purchasing an REO home is that there’s no guarantee the home will be vacant when you come into ownership of it. Renters who weren’t informed by the previous owner that the house was under foreclosure in time to find a new residence may still live there. Or, a homeless person may be using the property as a shelter, even if the electricity and water is shut off. Whatever the case may be, you’ll want to know your legal rights, as well as the current renters rights, in your area. Keep in mind that they may be different from state to state, and a good ‘agent will understand the laws related to the foreclosure sales process or have a relationship with someone who does.

Assist you during the process of submitting an offer on an REO home.

The paperwork and processes involved in making on offer on an REO property are very different than your standard real estate offer. There are rules and stipulations that can be confusing to most homebuyers and many agents, but that agents who specialize in REO homes know like the backs of their hands. Whether you bid on an REO property online or through some other means, it’s important to find an agent that can make sure you do everything by the book so that your offer is considered (and not thrown out because you unknowingly missed a step or left out some required information).

Of course, no one can eliminate the possibility of hiccups in a real estate deal completely, or in any deal for that matter, but an agent experienced in foreclosure properties will educate you on all the details of the process. That way, you know what to expect and can feel confident in your decision to invest in a particular REO property (or not).

Know more on:foreclosure listings

Qualification and Designation

Not all real estate sales agents are Realtors. A Realtor is member of the NAR (National Association of Realtors) and agrees to abide by its strict code of ethics. Additionally, he may hold designations such as CRS (Certified Residential Specialist); ABR (Accredited Buyer’s Representative); GRI (Graduate, Realtors Institute); and SRES (Seniors Real Estate Specialist).

While both real estate agents and Realtors are licensed to conduct real estate transactions, there is no guarantee that all Realtors are morally and ethically better than unaffiliated independent real estate agents. Becoming a Realtor, however, shows a certain amount of commitment towards the profession and on-going education.

Experience and Track Record

Experience counts. A good real estate agent or Realtor should have been in business for a number of years, and it is important that the agent you pick knows the neighborhood you are interested in. He needs to know about schools and businesses in the area, recent sales, upcoming projects, current listings, etc. He will need to select homes that meet your needs. If you are selling your home, he will need to find buyers who are looking for a home similar to yours. Your options, as a seller or a buyer, will improve if your agent has good reputation because his inventory will more likely increase over time.

Ask the agent to provide you a list of homes sold or bought in the last year within the area of town in which he does business. This will give you an idea about the price range of homes in which he normally lists or sells and his overall experience and success as a real estate agent.

Commitment

Ask them up front about their current availability to attend to your needs. A full-time real estate agent is your best bet. If you select a part-time agent, make sure you set time expectations up front and determine the specific hours and days he will be available to you. A busy or part-time agent may not have time to accommodate your needs, which may lead to unreturned phone calls and/or late appointments resulting in unnecessary delays.

Hiring an agent from a big company has its advantages as there is a good chance someone is always there to answer the phone. Big realty companies have large advertising budgets and may market your property more aggressively. It is not as important which company brand you choose, but which agent you choose. You may have to interview a lot of them before you find an agent that is a good fit for you.

References

Buying or selling a house involves a lot of money, so trustworthiness is one of the essential qualities to look for in a real estate agent. An agent may be qualified and experienced, but it does not mean that he enjoys a good reputation among his customers. So ask for references and perform a quick online search to see what feedback comes up.  Researching the references will also give you an idea of how good they are in negotiating offers and ensuring that your interests are protected in the real estate transaction.

A good agent should always put your best interests ahead of their profit. He should show you as many properties ad you would like to see and allow you enough time to decide. Many agents will try to convince you to make your decision fast or push you to purchase their listings. So it is important to find an agent that is honest and does not shy away from hard work.

Know more on:Reo Properties and buying foreclosed homes

1) Make an all-inclusive offer – when you decide on a figure, make sure it includes all costs, such as closing costs, appraisals, etc. This just makes things simpler for the seller, so they won’t have to figure this out.

2) Have your financing in place – try to pay with all cash if possible, or have a lender ready to provide you with the money to purchase. Do your research beforehand and give your bid accordingly, instead of relying on the seller.

3) Have a realistic offer – this can’t be said enough times, but do your research. look at the prevailing market price, and also how much the lender has already lost on the property. Don’t lowball too much and risk being ignored (they will take the the first “best offer”). About 20% below the fair market value should be a good starting price.

4) Dot all the i’s - read the requirements and the fine print. Many opportunities are missed because of missing or incomplete paperwork.

5) Don’t be discouraged – it’s nothing personal if you don’t get the property you really want. Just move on and find another home you’re interested in. Also, don’t be surprised if you see the same property back on the market a few months later. Nothing is ever final.

6) Close ASAP – closing shouldn’t take months and months – try to speed up the process as much as you can. Most of the time the trouble comes from problems over the title. Try to iron out these details from the beginning or try to make offers only on properties with no disputes.

The lender will always take the path of least resistance, and will take the best offer they can – after all, they’ve already lost money on the first transaction and will want to recoup their losses.

Know more on:reo foreclosure list and bank foreclosure listings

And even though the rolling quarter-over-quarter figure measuring housing prices against those numbers three months ago has declined by 1.8%, this isn’t bad news considering there was a 5% drop in April. Even though the quarter-to-quarter numbers are still in the negative, they are improving. And the overall yearly numbers definitely are.

‘We continue to see sustained price growth throughout much of the country with yearly price gains reflecting the housing recovery off of last year’s lows. In June of last year, we reported a national yearly decline of 19.3%, whereas the present report shows a 6.8% gain,’ said senior statistician Alex Villacorta with Clear Capital. Clear Capital is the real estate statistic provider who reported the increases.  All four US regions have seen an increase with the Midwest seeing the largest jump.

Villacorta also stated that part of the reason for the growth of residential home prices is that the tax credit for housing expired at the end of April. As a result Clear Capital is expecting even further gains in the price of housing. If you are considering buying a home, you may want to do it soon. If prices continue to rise as expected, the sooner you buy, the better for your bank account.

While this increase in price may not be the best news for potential homeowners, it will definitely help the housing market bounce back. There has also been a decrease in real estate owned homes that are currently on the market. Right now REO properties account for 27.8% of the market, which is significantly down from 41.7% this time last year.
Despite how shaky and uncertain the real estate market has been in the past few years, all indicators are that the increase in the price of residential homes will continue through the summer. Real estate owned homes will most likely continue to decline, making up less and less of the overall real estate market.

Know more on:foreclosed homes for sale

Why would first-time home buyers be interested in REO properties?

First-time home buyers, including recent graduates fresh out of college, are usually buying their home on a tight, price-sensitive budget. REO properties, which are homes that have made their way through foreclosure and into bank ownership, offer discount-minded buyers an ideal way to save on their next home.Know more on Bank foreclosure listings.

What makes REO properties the ideal way to buy a discounted home?

Buying REO properties allows the purchase of a home using a more traditional mortgage process, in sharp contrast to the high cash payment that may be needed to buy a home via foreclosure.

Buying an REO home also represents less risk. Traditional foreclosure homes often times find themselves still filled with tenants and unwanted liens. Buying directly from the banks allows for a smoother process.

Vacation home buyers have the opportunity to save thousands by buying REO.

Whether you’re buying a ski condo in Colorado or a winter home in South Florida, GoHoming.com’s large inventory of REO homes gives vacation home buyers great options for home buying all across the country. Vacation home buyers now are much more sensitive to home prices than they were just a few years ago. If you’re interested in saving on your second home purchase, make sure to check out GoHoming.com

With REO properties in sunny locations – California, Florida, Nevada and Arizona to name a few – and ski-friendly locations as well, GoHoming.com helps vacation buyers find their ideal home and spend wisely.

Imagine a Los Angeles couple that enjoys spending more weekends than they’d like to admit in Las Vegas. Rather than spend money on hotel rooms every weekend, why not invest in an REO home and invest that hotel expense in home ownership? REO properties from GoHoming.com allow you to still vacation in your favorite locale, but do it in your new home-away-from-home.

Your best weapon against potential scam artists is knowledge, so be sure to do your research first.  By knowing how foreclosures and short sales work, as well as the potential pitfalls, you are less likely to be taken in by scam artists.  Here are a few examples of scams and fraud that you will need to look out for.

Ebooks, seminars, and sources of information. Yes, I know, I just told you that research will protect you from scams.  It will, but be sure that you are getting your information from reputable sources.  Ebooks and seminars are often just attempts to make money off of people.  Legitimate opportunities will share these characteristics:

• Make sure the website is clean, professional, and error-free. Reputable companies or authors have the money to pay Web designers and writers for a professional-looking website.  Typos and other errors are a sure sign that the ebook or seminar is going to be poor quality, and not worth the amount of money you are paying.
• Confirmed credentials and contact information. If you have no idea who the person is, you have no way of checking their supposed credentials, and you have no way of getting a hold of them other than an email address, chances are they are a nobody and this is a scam.  Do a WHOIS search to find out where the owner of the website is located, and perform a Google search to verify that the “expert” really is who he or she claims.
• Loud or flashy promises of free information. Using freebies to generate business is a well-known marketing tactic, but scam artists tend to use it to the extreme.  Why would a company wine, dine, and educate you, if not in the hopes that you’ll bring your credit card?

Unapproved short sales. If the price seems too good to be true, it might be.  Look for an indication in the listing that a buyer offer will require “third party approval.”  This means that the listing price is lower than what the seller owes the bank (and possibly two banks, if a second mortgage has been taken out).  A real estate agent doesn’t need to get bank approval to list a lower price, and just because s/he lists it at that price doesn’t mean the bank will accept a short sale.  You may tie up a lot of your time waiting for an answer from the bank, only to find out that they never had any intention of approving a short sale!

Homes with more than one lien on them. In order to take possession of a foreclosure, you will need to make a deal to settle the debts on the property.  Therefore, your worst nightmare would be finding out, after having paid off one mortgage, that there was a second mortgage out on the house.  Be sure to do a title search first in order to verify what liens are out on the property.

While it’s true that you can get a really good deal on a home by buying foreclosed homes and short sales, you still need to be on the alert for foreclosure fraud!  Scams are abundant in the industry, so do your research and be suspicious of anything that seems too good to be true — it probably is!

Know more on Home foreclosure listings.

The banks have significant incentive to sell the properties in their possession.  Banks are set up as financial institutions, not as real estate management companies.  They do not have the type of resources to devote to maintaining large amounts of properties.  It is a very expensive proposition for them to carry these types of liabilities on their books.  This give you a distinct advantage when negotiating with them.  The bankers are charged with clearing the books of non-performing assets.  It is important to get as much for them as possible in the shortest amount of time.  Time eats into the resources of the bank as much as it will eat into yours, so you understand the urgency of getting the deals done.  This is not to say it is necessarily an easy process, nor guaranteed to be profitable.  You will have to work hard at making the deal so everyone can come away with an agreement that is acceptable to all parties involved.  These are professionals that have a great deal of experience negotiating large deals on a regular basis.  You are best served if you approach the deal that you intend to make with the same level of professionalism.  If for no other reason, if you intend to purchase additional REO property in the future, you may very well run into the same people somewhere down the line.  Building a strong business relationship is in your best interest, as well as theirs.  If you do it right you will find that the deals become easier once you are known to be a credible business partner. You will see how important this relationship can be if you work through a mortgage broker for financing.  The brokers with the best relationships can get the deal done a lot quicker, and with fewer surprises, because the banks are willing to work with them.

Once you have settled on a property it is important to assess the condition closely.  Because most of the dwellings have never been seen by the bank in their current condition they often do not come with warranties either expressed or implied.  They are sold as is.  You will want to have the property inspected for major flaws or damage.  This inspection will partly determine your offer price.  You must be realistic, not only in how much it will cost to bring the property to a salable condition, but how long it will take to do so.  You can also expect a counter offer from the bank.  Negotiating with them is not much different than negotiating for an owner occupied property.  Also, delays can be created because of the sheer volume of transactions that banks could be handling at any given time.

One final consideration that is as valid with an REO property as with any other, and that is location.  You will want to do extensive research in how well the particular area is trending to calculate your potential for profit.  Remember, if it doesn’t look good to you, it will not look good to a buyer.  The risk can be great, and if done with all due diligence, so can be the reward.

Know more on:Reo foreclosure

A featured home on GoHoming.com in Las Vegas, NV.

You are probably thinking that flipping houses right now could be a bigger risk than you are willing to take.  That may be true for some people, but for those who are willing to put in the time and effort buying Nevada real estate owned properties offer a multitude of opportunities.  A lot of things have changed to be sure.  You will not find the long lines of people waiting to get their names on a list or getting a lottery ticket to purchase a home.  But the good news is those same homes that people wanted before are still attractive.  For the savvy investor there is potential for profit, if done right.  All the emotion of the panic buying in the early two thousands is gone.  Now you can make solid financial decisions based on facts instead of emotion.  That is the mistake many people made when buying properties during the bubble.

First, you want to do a market analysis to determine the going prices for properties in the area in which you are interested.  You should do this before you find a specific property.  It will prevent you from falling in love with a specific home and allow you to make better judgments as to the true value of the property.  If you see that all the homes fall into a particular price range then you should not extend yourself beyond that range.  You might be able to rationalize your decision because of one feature or another but that will be based on opinion instead of fact.  Your opinion is just yours.  If you intend to flip the property it is the new buyer’s opinion that matters more than yours.  They will be doing some of the same legwork you do in order to determine the value of the property.  Let their emotions determine what it is worth to them while you can rely solely on the facts.  This difference in approach can be where you can make your money.

The people who are flipping houses have more inventory to choose from than ever.  Because of this, you can find a home with all the amenities that are most desirable for the potential buyer.  It may be the tropical landscaping with palm trees and lush ground cover that brings in the buyer.  Curb appeal is still a big selling factor.  Maybe it is the presence of a swimming pool or hot tub that will draw them in.  Kitchens are still high on the list and some of the recently built properties have all the modern conveniences such as islands, stainless steel appliances, and granite counter tops.  Bathrooms follow a close second when determining what most people find attractive in a home.  Here you want to make sure that the bathroom has plenty of square footage.  The most sought after bathrooms have separate showers, spa tubs, and double sinks.  Bathrooms set up in this way provide the owner with better access when getting ready in the morning and have the added appeal of having a comfortable space to relax after a long day.

You will want to make sure that the exterior architecture blends well with the rest of the neighborhood.  Leave the concept of one person’s vision  in a home alone because that will be your potential market for resale, one person.  If the neighborhood consists of two story dwellings, look at two stories.  If it is single level homes, look for that type.  You do not want to be far from the norm when looking for a home you plan to resell rapidly.  You also do not want to have your financial resources tied up for an extended period of time so quick sale turnaround is key to maximizing your potential for profit.

Following these few simple rules will help making flipping houses both satisfying and potentially profitable. Know more on Bank owned homes for sale.

Know more on:home foreclosure listings and foreclosed home listings

Are you looking for REO homes for sale?

There are deals to be found in a variety of different places for a variety of different things.  However, if you are looking to purchase a home, you might find yourself looking in a lot of the same old tired resources.  Traditional real estate agents and agencies are often trusted with helping buyers find homes. They have access to listings and information that sometimes even the skilled searcher doesn’t. On occasion, however, there are resources the skilled searcher can find that maybe a traditional real estate agent cannot: REO property time limit bidding sites to find foreclosed homes.

There are a lot of deals available to people who may not have been able to afford a house previously, especially found when looking at purchasing an REO property.  The problem arises that when dealing with some real estate agents, they aren’t extremely savvy searchers and neglect foreclosure search sites like GoHoming.com, where homes can be found and purchased with ease.

There are a variety of means by which you can find foreclosed homes.  Fortunately, there are a websites which allow you to do searches which will greatly simplify the process.  Here are some tips when searching on these sites:

• Restrict your search parameters, but make sure not to restrict them too much. You want to be able to search on the site for properties that are both under and a little over your price range. You never know when a property might be a good fit and worth the extra investment.
• Bid on properties ranging from 7 to 60 days, to allow you enough time to secure financing if needed, allow you time to look at the property, and assess any unforeseen problems.
• Account for fees associated with the potential purchase of a property on a third party site. You’ll want to see where your money is going, but also you don’t want to get surprised at closing either.
• Check to see what partnerships the search site has so you know the extent of their inventory.
• Do they have a blog? Make sure you subscribe to it so you’re aware of any specials, updates, or changes in the industry that might be taking place: thereby affecting your potential purchase.
• Your real estate agent can still be involved in the process! Just because you are using your own time to research properties doesn’t mean you won’t be able to still use the expertise of your realtor.
• Realtors can search sites too. Ask your realtor to delve into the sites a bit more that you find, have them put their watchful eye on properties that appeal to you. They’ll then be able to arrange a showing of the home for you, and see if it truly is worthy of a bid.
• Look at the additional information on each and every listing you are looking to place a bid on. What does the neighborhood view look like? Research information about the data provided like subdivision, square footage, and current estimated home value.

While not a normally examined market, buying bank owned properties can prove beneficial for many families and others who only previously dreamed of owning a home.  If you are looking for a good, affordable deal and you and your real estate agent are willing to do the required background work, you can get the home you want looking for reo homes for sale.

What research tools have you used in the past to help you find a great deal on real estate?

There are many advantages to buying bank-owned properties – also known as REOs (Real Estate Owned). There is also a lot to consider and keep in mind when buying a bank-owned property — and it is more than what you see on infomercials and other advertisements. By taking the time to learn about the process, you can decide if this is the right type of transaction for you.

What are bank-owned properties/REOs and how do they differ from foreclosures?

REOs are properties that are returned to the bank once they have gone through an unsuccessful foreclosure auction. Generally speaking, when a property goes to a foreclosure auction, the amount due on the home includes the amount due on the mortgage, as well as any late fees, attorney fees, tax liens, and any other costs associated with the foreclosure process. If you buy a home in pre-foreclosure, or at auction, be prepared to pay for any liens that have been place on the house, as well as be willing to evict anyone living in the property. In many cases, the foreclosure auction receives no bids, which is why it is returned to the bank for the bank to sell.

Once the property is returned to the bank a few things then happen. Now that the bank owns the property, a mortgage no longer exists. The bank will negotiate with those who hold liens on the property – like the IRS, outstanding property taxes, and homeowners associate dues, etc., to have the liens removed. This should insure a clear title when the property is sold. The bank will also handle the eviction process clearing the way for an easier sale.

What you need to know when purchasing an REO property?

1. There may be some REO properties that are already listed in your local MLS. If so, you can contact the listing agent directly. If it is not publicly listed, you will need to contact the bank directly. This can be done either by calling the bank and talking to the loss mitigation department, REO Department, or asset management department – the department names will vary. With the influx of bank-owned homes currently on the market, it may take a while to get in touch with someone that can help you. You can also overnight a check to the lender for a percentage of the sales price to get their attention (with the amount to be held in escrow until the property closes, or returned should you not proceed with the sale). Just keep in mind that you should be prepared and able to buy the property you are inquiring about.
2. Keep in mind that a property that is bank-owned does not mean that the bank is willing to give it away. They are looking to make the most money possible on the deal and recoup some of their losses. If you find a bank-owned property that you are interested in, take the time to research recently closed sales in the area to make sure you are not paying more than what the fair market value is for the home. This is also good information to have if you are bidding against other parties – you don’t want to bid yourself out of a good deal.
3. Another thing to consider, if you decide to make an offer, is to take the time to have your own title check conducted through a title insurance company. This will insure that all liens, and title claims have been taken care of and there are no surprises. Though this should not be the case when purchasing bank-owned properties, it is always better to be safe than sorry. Often times there are more than one mortgage, back taxes, mechanics liens, on the property and one of these claims could easily have fallen through the cracks.
4. Don’t be afraid to try to negotiate. Since the lender already owns the property and they are more than likely anxious to sell it, they may be able to take care of some of the closing costs, or possibly reduce the asking price, interest rate, or lower the down payment. Keep this in mind when making the offer – especially if the home is in need of repairs. If you decide to put in a lower bid, make sure you can substantiate your reasons for doing so by providing repair estimates, pictures and other documentation as needed.
5. As mentioned above, get an inspection as that could help in your negotiations. In many cases, the previous owners of the property were already struggling to make the payments and most likely did not have the funds to do regular maintenance on the property. When making the offer, you can add an inspection contingency that will allow you time to have any inspections done and the ability to walk away should the cost to repair be too great. In some cases, the lender may decide to negotiate or give a credit at closing because they don’t want to have to repeat the process with the next potential buyer. Most properties are sold “as is” but that doesn’t mean you should let yourself get stuck buying a money pit if you can help it.
6. Anyone can buy an REO – not just investors. With tightening restrictions in the lending market, be prepared to put money down — do not expect to easily find 100% financing. You will also need to have a pre-qualification letter, or even better, a pre-approval letter submitted with your bid as it helps show the bank you are serious about purchasing their property. In the case that a buyer’s existing home has a great deal of equity already, it may be possible for the buyer to use a line of credit from their bank to help purchase the property. If this is your first home, be sure to check your credit report and fix any errors before getting approval for a loan to insure the best rate and terms possible.
7. Finally, you may want to consider working with a Realtor who has experience in REO property sales and prepare to be patient. One of the tricks to buying an REO by state is to find the person at the bank who can make the decision to sell the property. This can sometimes take a few days, up to a few weeks. Some of the larger banks have larger departments that deal with all REO sales, while others that are not as large do not. Also, banks are not open on evenings and weekends, so if you make an offer on a Friday afternoon at 6 p.m., don’t expect to hear anything back until the next week.

If you decide this is the route you’d like to take, remember, do your research, get your inspections, and be patient and you may get a great deal! GoHoming.com allows buyers to make an offer on REO properties the traditional way as well with our “No Time Limit Bidding” method. Read more about the REO buying or bidding process.

Know more on:bank foreclosure listings