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Twin Cities Foreclosure Properties Buying Guide

By
Real Estate Agent with REOSphere

TWIN CITIES MINNEAPOLIS SAINT PAUL FORECLOSURE PROPERTIES BUYING GUIDE

Foreclosure properties are a taking over the inventory of properties for sale in the Twin Cities.  Foreclosure Properties can provide value for an investor or home buyer. The purchase of a foreclosure property is similar to traditional property sales, but there are some differences to be conscious of. Foreclosure properties are owned by banks and often referred to as an REO Property. When dealing with a bank verses a traditional property seller, you need to be prepared. Approaching the foreclosure purchase with the proper mind set, will make the process easier. Here are some important guidelines to keep in mind.

#1  Cash or Mortgage Approval REQUIRED

Before you even think about putting in an offer, you must demonstrate you have the financial resources to make that offer. And because the best foreclosure properties go quickly, you may not have the luxury of finding a home and then getting a mortgage approval. By the time you have your approval that foreclosure property may no longer be available.

#2  Be Prepared to POUNCE on a foreclosure property.

Like all properties on the market today, the ones that are priced well, sell fast. Therefore, you need to be ready to buy, when you find the foreclosure property that meets your needs.

#3 What to offer? A Foreclosure Properties Realtor can help.

Foreclosure Properties historically offer an additional savings of 15%. This figure comes from the Minneapolis Association of Realtors in a recent special report. Before a bank (REO properties) is put on the market, the bank will ask Realtors to provide a report called a BPO (Broker Pricing Opinion). They use this information to determine the asking price. Also, a bank does not have the emotional attachments that a traditional seller may have. However, banks are eager to move their foreclosure properties portfolios and this can lead to more aggressive foreclosure properties pricing.

#4 Foreclosure Properties are sold "AS IS"

Remember foreclosure properties are bank owned. Banks have never lived in the home or even been to the foreclosed property. On top of that, banks want to sell these homes fast. They will not accept an offer that is contingent on selling a home, mortgage approvals, inspections etc.

That does not mean that you cannot do an inspection. You just need to do it before you place an offer. It is recommended that an inspection be done, so you do not encounter any surprises and you are aware of any repair costs, if any, and of course peace of mind.

#5 PUT YOUR BEST OFFER IN

OK, you have not asked for an inspection, your offer does not have any contingencies, such as an appraisal, and does not ask for repairs or seller concessions. Your foreclosure property offer does not need not be structured as the above, but be aware that a bank will probably decline your offer if not done this way.

Now, what do you offer? A knowledgeable foreclosure property Realtor can guide you in this matter. Each foreclosure property is unique, in location, time on market, condition etc. You need someone to do extensive research on your behalf when you locate your ideal foreclosure property.

#6 NOW YOU WAIT....

Banks are never as quick to respond as a traditional home seller is. The reason is often the foreclosure property offer, must go through many layers of approval. Putting in deadlines on a foreclosure property offer, can mean nothing. Calling the bank will not speed up the process. You are on their time.  

Something else that may slow the process is title issues. The foreclosure property may have some extra liens that need to be cleared to ensure you have clear title.

#7 ENJOY YOUR NEW FORECLOSURE PROPERTY!

You have done everything right and you are now a proud owner! Buying a foreclosure property has paid off in many ways. You may realize instant equity, and you know you have made a contribution to the housing market. Enjoy!

If you need advice on how to find a foreclosure property, making an offer, finding the best discounted locations or anything related to purchasing a foreclosure property, http://REOSphere.com is a good place to start. They can be reached at 612-414-2541.

Comments (22)

Greg Steffens
Mountain Country Realty - Lake Arrowhead, CA

Randi - Welcome to Active Rain and congrats on your first post.  Be sure to spend some time looking around at what and how others are blogging here.  It is a great education and lots of fun.  Looks like you're off to a great start...keep it up!

Aug 24, 2008 06:50 AM
Brian Hoots
Real Living Speckman Realty, Inc. - Bourbonnais, IL

Randi, Great information for buying foreclosures,  Welcome to Active Rain!

Aug 24, 2008 07:33 AM
Patricia Fisher
Keller Williams Realty - Spartanburg, SC

Welcome to the Active Rain Community!  This is a great site to network, learn, and share ideas with others.  Have a great day!

Aug 24, 2008 09:00 AM
Susan McQuaide
Keller Williams - Simpsonville, SC

Welcome to Active Rain!  Hope you find this site as informative and entertaining as I have.

Aug 24, 2008 12:41 PM
Steve Vennemann-Hennepin-Dakota-Anoka contract for deed property-Ramsey-MN
BoardWalk Premier Realty INC - White Bear Lake, MN

I just started active rain and wanted to welcome you. http://www.mnlakeplace.com Great site

Aug 24, 2008 02:25 PM
Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hello Randi,

Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to ya!

-Keith

Aug 24, 2008 03:04 PM
Lori Franks
Real Estate Consultant - Brookings, OR
Brookings, Oregon

Hello Randi and welcome to ActiveRain. Congrats on your first post. Keep up the good work and happy blogging!

Aug 24, 2008 03:59 PM
Vicente A. Martinez
Prudential Douglas Elliman Licensed Real Estate Salesperson - Woodhaven, NY
Realtor, Brooklyn - Long Island - Queens Homes

Hi Randi and welcome to active|rain. There are thousands of tips, tools, and tricks of the trade here. Be sure to check them out. Best of luck and see you around.

Aug 24, 2008 05:43 PM
Ron Martin
Keller Williams Realty - Spartanburg, SC
Ron Martin Team

Welcome to Active Rain, This site is great for free marketing, share ideas, good luck with your blogging.

Aug 24, 2008 10:53 PM
Marcy Fedalei
Keller Williams Realty - Spartanburg, SC

May I be one of the first to welcome you to Active Rain - a great place to share ideas, thoughts and perspectives. Enjoy!

Aug 24, 2008 11:13 PM
Yvette Gardner
Keller Williams Realty, Spartanburg, SC - Spartanburg, SC

Welcome to the Active Rain community. You have chosen a great site with tons of information you can learn from.  Have fun with it and hope to see more of your blogs soon!

Aug 25, 2008 01:12 AM
Kirk Westervelt
Van West Realty - Greenville, SC Realtor -Short Sale Expert! - Greenville, SC
Kirk Westervelt, Broker In Charge, Van West Realty - CDPE - Short Sale Agent - Home for Sale - Greenville, Simpsonvil...

Hi, welcome to Active Rain! I hope to see more of your blogs in the future. Learn from others, share your knowledge and experiences and enjoy yourself! Take care! ---Kirk.

Aug 25, 2008 01:16 AM
The Trumm Team Omaha Homes for Sale, Real Estate
Keller Williams Greater Omaha - Omaha, NE

 

Welcome to ActiveRain!

If you would like a few tips on getting the most out of ActiveRain, please visit my blog Welcome to Active Rain.  It has a few simple steps of what to do now that you have joined.

If you ever have any questions, just let me know.

Troy Trumm

Aug 25, 2008 01:17 AM
Connie Rice
Keller Williams Greenville Central - Simpsonville, SC
Connie Rice & Partners - Greenville, SC Real Estat

Welcome to the rain! You've joined a great place to network, make and meet new friends and discuss lots of interesting topics. I see you are already off to a great start! Stop by if you get a chance. I would love to hear your feedback on our thoughts! Well, have great time and ENJOY. Look forward to seeing you around.

Aug 25, 2008 01:55 AM
Anonymous
Tim Heiden

Credit Restoration Consultants would like to welcome you to Active Rain. Should you or any of your credit challenged clients have a need for our services, feel free to call Credit Restoration Consultants at any time. Enjoy the site as it has proven to be a great source of information and exposure. 

Aug 25, 2008 04:24 AM
#18
Nate Blankenship - Spartanburg, SC Realtor
Keller Williams Realty - Spartanburg, SC

Welcome to Active Rain! This is a great site to network, learn and share ideas with others. Have a great day!

Nate

Aug 25, 2008 06:29 AM
Ginger Ryals
Prudential C Dan Joyner and Young Realtors - Spartanburg, SC

Welcome to Active Rain!! This is a great site to network and share ideas!! Have fun with it!!

Aug 25, 2008 06:51 AM
Nance Burdette
Keller Williams Realty Partners - Spartanburg, SC

Congratulations on signing on as a new member of ActiveRain. Being a new member myself going on my third week and only posting a few blogs so far I truly see the awsome advantage that this truly can be; and only the beginning of a healthy and wealthy relationship of abundant professionals. Everyone has been so very kind. Hope to see your blogs in the future.   Best of Luck to all of us,  Nance

Aug 25, 2008 12:57 PM
Lorena Westervelt
Van West Realty - Greenville, SC
Co-Founder/Co-Owner

Hello, welcome to Active Rain! This seems like a wonderful environment to network as well as learn from others. I hope you enjoy yourself and participate often in the Active Rain environment!

Aug 26, 2008 01:09 AM
P G
Charlottesville Solutions - Charlottesville, VA

I see that you are new to Active Rain and I just wanted to welcome you. I hope that you enjoy it as much as I do and that you find it a great resource.

Aug 26, 2008 07:14 AM