Special offer

BANK OWNED, HUD, REO, FORECLOSED blah blah blah...

By
Real Estate Agent with OwnerLand Realty SAL2006007409

I am sure that many people are very confused these days when it comes time to buy a home.  Everyone wants a good deal.  Everyone wants a bargain.  Everyone wants instant equity.  Below I will address a few of the most commonly asked questions about these kinds of homes.

Where do they begin?  What do the different sets of letters mean and are they important to a home buyer?  Are there different places to find these types of homes?  Are the DOT.COM sites accurate and up to date?  Who pays the "buyer's agent" commissions and fees?  How long does the buying process take when buying one of these homes?  Can I get inspections done? 

Well, let me try to assist you with your thought process and the different questions that are presented here.  First of all, some of the names are already obvious as to their meaning.  IE, Bank Owned and foreclosed homes are basically the same thing; as is an REO home.  REO stands for "real estate owned" homes and those are the ones that are in the bank's portfolios.  A HUD home is a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

There are numerous websites that allow you to access most of these types of homes listings and information.  One of the most famous and largest is Realtor.com and a close runner-up is www.martysnyder.com.  Actually, I had to put a plug in for myself, in truth my site pales in comparisonto Realtor.com.  However, there are some pretty cool features on my site that I am very proud of, especially the "Market Snapshot"  It will give you aerial photos of the homes that are for sale, including detailed listings and photos in your chosen areas.  (SW Ohio MLS information only)

There is an OFFICIAL website for purchasing HUD homes in the State of Ohio.  In order to purchase one of these homes, you MUST use a licensed agent.  Preferably one that is very familiar with the HUD purchasing process.  Hint-Hint!  I have been a subscriber to some of the "knock off" sites and I can say from personal experience that most of the time, their listings aren't even close to the "actual" and "live" listing information found on the OFFICIAL site for HUD homes.  There were times where I would check out a particular property and compare it with the Official HUD site, only to learn that house had sold weeks earlier.  Do you have any questions?

As in most, if not all buyer type transactions, the seller pays the buyer's agent's fees.  A person would be silly to go about buying a house (their single largest investment of their lifetime) without a licensed Realtor.  You might even want to look for the ABRdesignation at the end of the agents name.  Hint-Hint.  It stands for "Accredited buyers' representative."  The agents who have that accreditation have gone through the extra steps needed, including additional college courses, in order to obtain the knowledge to assist their clients with the buying processes.

The buying process can take as little as 10 days with an "all cash" transaction to several weeks or even months for financed type purchases.  The single most common delay in buying REO properties are the "title issues."  Title issues can account for huge delays in buying any home, especially a foreclosed home.

Inspections are HIGHLY recommended when buying ANY home.  It doesn't matter if it is a foreclosed home or not.  A good agent is able to negotiate for some items for their buyer, even though the property might be listed as being for sale, "as is."

I hope that I've helped to dispel any rumors or untruths about the buying process of these types of homes.  If and when you are ready to buy, look me up!  These types of homes are my SPECIALTY!

 

Comments (3)

Susanne Novak, ABR, FIS, GRI
RE/MAX 24/7 - Columbus, OH

You forgot to mention that in order to any type of foreclosed property, the buyer has to be pre-approved (for HUD homes by a "direct lender") and has to have Earnest Money, typically $1,000.

I agree, many consumers don't know the difference between a foreclosed home or a short sale and what all the lingo stands for.

Feb 18, 2009 12:52 PM
Keith Pound
EXIT REALTY CRUTCHER - Louisville, KY
Realtor, Auctioneer - Louisville, KY - 502-645-5950

Marty, nicely written, people do wantto find a deal and do get confused in searching these national websites, so why not use a Realtor in their area (like Kentucky..hint, hint) who works with HUD properties or REO's on a daily basis.

Feb 18, 2009 11:35 PM
Marty Snyder
OwnerLand Realty - Monroe, OH
PSA, SFR, SRS; Ohio Homes for Sale

Thank you for the compliment.  I appreciate it.

Feb 19, 2009 03:50 PM