How To Find REO Properties
There are many different ways to find REO properties. The fastest and easiest way is to establish a relationship with a Real Estate agent who specializes in REO properties. They can keep you up to date on new listings, price reductions and at times notify you prior to a home going on the market.
You can also find foreclosure listings on the Internet. Many banks have their own website where they list their REO listings - most of these will also be listed with a real estate agent. Several foreclosure listing companies actually sell subscriptions to their services. These companies will provide you with Notice of Default information or "Preforeclosure" information. If you choose to use one of these companies, make sure they give you a free trial period so that you can see how current the listings are. One such company is Foreclosure.com.
Newspapers are another way to gather information on upcoming REO properties. It is required by law to post a public notice of auction in a local paper. You can also search public records. Both the newspaper and searching public records can be very time consuming.
DON'T FORGET WE CAN AUTOMATICALLY SEND YOU LISTS OF NEW & REDUCED PRICED REO PROPERTIES EVERY DAY.
Hiring a Buyer's Agent
Unless you have direct experience negotiating with banks, you may receive better representation by hiring your own buyher's agent. But before you select an agent, choose several and interview them to find a good fit.
•· Buyer's agents have a fiduciary responsibility to protect your interests.
•· Buyer's agents do not represent the seller.
•· Buyer's agents are generally paid by the seller.
•· Hire a buyer's agent who has experience working with REOs.
Important items to keep in mind:
The REO Process is much different than a typical sale.
Investigate...Investigate...Investigate
Start your loan process prior to making an offer.
Most banks WILL NOT accept an offer contingent on the sale of another home.
Banks work on the "net price" to the bank. They evaluate every offer based on a "net price".
Once your agent receives a counter offer, respond quickly as another offer may come in and be accepted during this time.
Make sure you adhere to your contingency periods.
Make sure you close on time. Many banks have "per diem" penalties for not doing so.
For Part 1 -Tips on Buying REO Properties
And watch for Part 3 - What do I do when I find an REO property? 
And don't miss out on our Foreclosed Home Bus Tour on Saturday, February 23rd from 9 - 1.
And don't forget to visit our website at http://www.allelkgrovehomes.com/ for a list of our REO properties.
The Mode & DurhaM Team in Elk Grove, CA
(916) 230-0371 or send email to Lori@ModeandDurhaM.com.
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I'm pre-approved and I've found the house I want (listed as an REO) and have put an offer on it. My agent is a close friend that only practices part time. I currently have 20% to put down but will go FHA so I have cash on hand from the get go. Here is the run down:
1. Found the house I wanted, thought it was listed at a very low price and put in an offer for 3% over the list price 2 days after it was listed (with seller paying closing costs) - thought was a good offer!
2. The selling agent came back to me the very next day, stated that 10 offers came in, and that I was 1 of 5 to get a 'Best and Highest' counter offer. This offer was blank and basicly asked 'What do you REALLY want to pay for this house?'
3. I countered with an additional 5k and agreed to pay closing costs. Again, a very good price for this house as the comps have pointed to the house being worth +50k street value over my offer.
4. The day my 'Best and Highest' was to expire my agent called the selling agent and was told the following over the phone: 'Your client is 1 of 2 that the seller is contemplating going with and they would like you to get "desk appraisal" before your offer is accepted'. My agent, never having heard of this before was slightly dumbfoundedand and told them we would let them know our intentions tomorrow - which was a ploy to try to figure this move out.
I am willing to cough up the cash for the appraisal if that means I'll get the house, but from everything I've read online this seems to not be the norm. Can you advise as to why they would ask me to do this and is this pointing to shady dealings? What should my next move be? If the desk appraisal is less than the amount of my offer what happens? What if it is the same or more as my offer? I'm a first time home buyer and am trying to do all the research I can!
Thank you!