Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Sandy asks…

What are the benefits of buying a foreclosed home?

I am looking to buy a home in the near future. I have seen a lot of homes foreclosed that are for sale. I don’t know if buying one would be a benefit to me, or what to watch out for? Can someone please advise?

Your Questions About Foreclosures

The Expert answers:

The best thing about buying a foreclosed home is the PRICE. You generally will get a deal below market value. Here is some general guidelines

1. Make sure you have pre-approval from a major lender. Most foreclosure listing will need this prior to you making an offer.

2. Be prepared to wait for an answer. Many times, as with short-sales, the banks are slow to make a decision.

3. Get comparables that have sold recently in the immediate neighborhood. Just because it is a foreclosure, doesn’t make it a good price.

4. Once you get acceptance of your offer, be prepared to get all your inspections completed. It is super important to get inspections because the bank will not be able to tell you the history of the home.

5. Work with a reputable Realtor who can walk you through the process. The bank is the one paying the commission – so it wont cost you anything and will save you a lot of headaches.

Even if you are not buying a foreclosure, the things I always tell my clients are – When looking for a home, try to buy a home that has something unique about it – maybe a veiw, or a nice yard, something that when you go to resell the home will make it stand out. Also try to buy a home that is a diamond in the rough – the worst home in a desireable neighborhood is a better buy then the best home in the worst neighborhood. Also, even if you don’t have kids – try to get familiar with the good shcool districts – if you go to sell – this will be important.

Good Luck –

Your Questions About Foreclosures

Nancy asks…

A foreclosed home that’s for sale is offering 3.5% of sale price to go toward ONLY Whirlpool brand appliances?

I saw a real estate listing for a home that has gone into foreclosure and is bank-owned. The real estate listing says that the bank is offering the home’s buyer funds equal to 3.5% of the home’s sale price to go towards either closing costs, Whirlpool brand appliances, or a mixture of closing costs and Whirlpool brand appliances.

My question is: If I choose to use the funds for appliances, how would the bank force me to choose only the Whirlpool brand? And would I have a choice where to purchase the appliances, i.e., Sears, Home Depot, Lowe’s, etc? And why would the bank only consider that specific brand of appliances?

Your Questions About Foreclosures

The Expert answers:

I’m going to agree with some other posters here that it is likely a combination of standards for appliances that retain a certain value and a business arrangement they have made with that manufacturer, although I lean more heavily towards the second explanation. Business disclosure laws probably require that they inform you of any such agreements, and where you will have to purchase them from. I work with a builder who gives buyers an allowance to shop at a certain store (allowing them to buy more expensive items from their own pockets), but you really need to ask the representative of this seller for more details.

Your Questions About Foreclosures

Donna asks…

Can anyone tell me of a good website to find foreclosed and cheap homes for sales in the U.S.?

Your Questions About Foreclosures

The Expert answers:

Greetings,

I may be able to assist you.

FYI: I have a Real Estate Website for Investors with thousands of Properties for Sale, e.g., HUD Homes, Tax Sale Properties, Bank Owned Properties, and Mortgaged Foreclosed Homes for Sale throughout the country.

Note: I am not a Realtor or Real Estate Agent, but rather an Investor like you.

Currenlty, Access (to the HUD Homes Section on my website)is FREE.

If need you can Email at: bigiminc@yahoo.com

The Website is: http://www.delinquenttaxsales.com

Your Questions About Foreclosures

Susan asks…

On a foreclosed home, who negotiates the price on behalf of the mortgage owner(s)?

Let’s say, a home goes through foreclosure. Its related mortgage was pooled and securitized among thousands of others. Now, the home is for sale. The real estate broker incentive is to set a low price to turnover the property quickly. That’s because for a broker time is money.

So, who negotiates the price and protect the fragmented owners interest (MBS investors). Is it the servicer of the mortgage? But, because of his own operating cost he also would have an incentive to sell quickly at a low price. How about the securitization bond trustee. Does the trustee step in and negotiate with the broker what price is deemed acceptable to the MBS investors?

You can see it is kind of a gnarly question. If you have a clear understanding of this process, please educate me.

Your Questions About Foreclosures

The Expert answers:

Because foreclosures are somewhat unique, lenders request that a bpo done with foreclosed homes to find its real value.
Offcourse bpo doesn’t protect them bad market since a current BPO today might be old next week.

Lenders have options to sell foreclosed homes, either employ real estate agents to sell it for them or an auctioneer to auction homes or both

all Lenders have yet realized that it is better to sell quickly for losses than have property sit for a long time, perhaps by summer next yr they will.

Your Questions About Foreclosures

William asks…

Process for buying a foreclosed home?

I am trying to buy a foreclosed home that did not sale at the courthouse door. I put in a bid, and it is at the bank. How long will it be before I hear something? I just dont understand this whole process.
We did submit the offer with a realtor, but all of the offers have already been submitted to the bank.

Your Questions About Foreclosures

The Expert answers:

That’s a little unusual. Banks don’t sell their foreclosures direct, the list them with Realtors. If you have submitted an offer directly to the bank, then you need to follow up and make sure it’s being considered. Historically they will sit on offers waiting for a higher one. Why? They’re trying to minimize their loss. On the other hand they may be clearing up the title. When a mortgagee acquires property throough a foreclosure auction, they don’t get complete title to the propery. They get a certificate of title. It takes a court action called quiet title, to perfect ownership. That may be the reason for delay.

Realtor.sailor

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures