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| Q: | How is a HUD property different from other foreclosures? | |||||
| A: | HUD homes are FHA-insured foreclosures. The government owns them. The properties are classified as "insured" or "uninsured". Those that are insured are in good repair and FHA will insure a new loan for the home. Uninsured properties are typically fixer-uppers, and the buyer will be responsible for his or her own financing. More info from HUD | |||||
| Q: | How are foreclosure properties identified in the MLS? | |||||
| A: | Unfortunately, they usually are not. They are listed just like any other property. The best way to find them is by working with a real estate broker who specializes in this kind of property, or by searching the web. Search through Crye-Leike foreclosure properties for sale. | |||||
| Q: | Does the amount owed on a property determine what the bank will sell it for? Will banks sell them for less? | |||||
| A: | When negotiating with an asset manager at a bank for the purchase of a foreclosure, keep in mind that this is a professional seller. A good asset manager will work hard before a property is ever listed to determine fair market value. They order appraisals and hire a broker to advise them about the property's condition and value. Then, they price them accordingly. Often the amount owed on the property is actually far greater that its worth, which was likely a cause of the foreclosure in the first place. | |||||
| Q: | Do banks repair distressed properties? | |||||
| A: | Sometimes. The manger in charge of the property will consult with the broker prior to listing it to determine if it is a good candidate for repair or rehab. Then a marketing strategy is usually either "as-is" or "repaired". The as-is properties are priced lower, and the bank typically does not make repairs for these. | |||||
| Q: | What are some general guidelines for the foreclosure markets in the South? | |||||
| A: | Many of the forclosure properties that Crye-Leike lists require earnest money deposits of $1000+ and are sold "as is". Many REO properties will sell for cash. Crye-Leike agents have experience selling REO properties with all types of financing including FHA, VA, and conventional financing. Many times REO properties will be in a distressed condition due to the former owner's financial position before the foreclosure took place. We have sold REO properties in a list price range from: $4500 to $900,000+. The foeclosure market has a wide range of properties to choose from. Crye-Leike offers a full range of REO and Foreclosure services, including asset managers, realtors and more. Learn more about Crye-Leike REO/Foreclosure Services. | |||||
Self Employed - O'Fallon, IL
Referrals for O’Fallon, IL & the Metro East
Hi, Angie!
Great FAQs for agents & consumers who don't deal with foreclosures often. I get requests for foreclosed properties and quite frankly, it's very difficult to find them on my MLS. When it's REO, it's frustrating to wait on the response from the bank when an offer is made, because deadlines don't seem to matter much. It's a great niche to be in for an agent with lots of connections though.
Jul 24, 2007 04:47 PM
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