What a lot of people do not yet realize, this is the time to purchase foreclosures in real estate. Banks are going to need the write-offs when the first of the year rolls around. In order to get the write-offs most are going to negotiate a little bit more, or come down in price a little bit more. When approaching the banks with the intent to purchase make sure who actually is the one servicing the loan. Once you find out, for example, Countrywide, you will want to get pre-approved, or pre-qualified through them. The reason for this is if they get to keep the "paper", loan with that compnay, they are not going to lose as much money, if say Wells Fargo, or Bank of Americahad the loan. Moreover, do not ask for a lot of work to completed on the property. Granted, they may do it, but at what cost and time frames. Most, banks are going to want to do an "as is" sale. Make sure that you use a qualified Realtor for the negotiations, it does not have to be the listing agent, but it can be. In the central valley, more specifically, Modesto for myself, foreclosures and REO's are at an all time high. Close to 50% of our market are short sale or foreclosure properties. The ability to take advantage of this market is fantastic, especially because the feds just decided to lower rates last week. It is possible to get a 30 year fixed currently at 6%, jumbo loans, anything over 407k, are still high interest and are not as easily qualified for.
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