Does anyone here know how foreclosures work??

Submitting the offer and getting the offer accepted or rejected can take some time. Closing can take up to 120 days or more depending on the bank. The downside is that the bank sells the property "as is" and there are many documents that pertain to their "as is" stipulation. Buyers for these properties are taking huge risks. Sometimes they are worth it, sometimes they are not.

Fern---

Read my posting on this topic... http://activerain.com/blogsview/156584/-What-to-Really

Its more about Bank Owned Properties but I interviewed one of the top REO agents in the country for it.

The reason I got my RE license was to have access to comps and other info for investment purposes.  I was very involved with properties in foreclosure and it's very time consuming.  I think that the days of the sweet deal are numbered.  With many homes going into foreclosure that were mortgage at 100% LTV and declining home values, homes that go to the auction are offered at fair market value.  A couple years ago many investors were doing the fix-n-flips and were making really good money, but not so much today.

If you are going to venture into foreclosures, talk with your title company and ask for a weekly/monthly list of homes in foreclosure.  It's public record and I worked with two title companies that compiled that info.  If you can talk directly with someone in foreclosure, that is your best bet for buying the home without competing at the auction.  If the home goes to auction, in WA you MUST have verifiable funds (cold hard cash or a cashiers check for no less then the opening bid amount, and yes they actually look at your money) to bid when you show up at the auction.  Auctions are held every Friday in many of our counties.  You'd have to check with your counties to see what their auction guidelines are.  If the home your client desires goes to auction and is not bid on it becomes the property of the bank and it's advised that you contact the lender, not the trustee, as soon after the auction as possible, like the same day, to try to purchase the home.  If the lender puts it in the hands of an agent and cleanup or renovations are made, it'll cost you more.  Also keep in mind, unless a home happens to be listed for sale (in WA rarely do people in foreclosure try to sell their homes, it's quite baffling) a bid at the auction is sight unseen, except for a possible drive by.  Which I would strongly recommend.  A neighborhood can tell you a lot about trying to sell later if it's for investment purposes.

Going to the auction is very exciting!  I have successfully bid on a home and I can say for every dollar we went up my heart beat a little louder!  Part of it could have been the thrill of the fist time, but we wanted to succeed!  Your clients are going to want you to do research on the potential properties for them and it's up to you how you would charge them for your services.  Going to the auction nets zero commission.  There is a group here called The Foreclosure Group that does all the research and bidding for their clients then charges them 3% of the winning bid amount.  They are doing very well.

It's an exciting venture and I'm looking forward to doing it again!  Good Luck! 

I have specialized in Foreclosures over the last 6 years for an exclusive investor. I have attended the auctions, tracked the Notices of Trustee Sales, bought preforeclosures and foreclosures via auction. If you would like me to email you the training I give my agents, I'd be happy to if you send me a reminder when I am in the office tomorrow. Rkosanovich@jroberts.com

Have a great evening