Buying a Foreclosure Property
I am asked quite often by other REALTORS®; "How do you find so many great deals in the foreclosure market". Honestly, the great deals are few and far between. However, good deals are available quite often. How do I do it? Shh...it's a secret!
The first step is understanding the different stages or types of foreclosures.
1) Short Sale or Pre-Foreclosure:
These are complicated by the fact that now you have 3 sides that must agree on a price
and a time frame. The owner is behind on payments and just wants out, any price will do. The lender is owed an amount on the mortgage and they want to recover their costs. The
buyer just wants a DEAL. There lies the rub. The process regularly takes from 3-6 months.
2) Sold at The Court House Steps:
The process starts with the monthly "list" of home that are set to be sold each month on the first
Tuesday. The "list" will have a number of homes that will tentatively be sold, often these homes get
pulled at the last minute. These are sold unseen so to speak, meaning no access inside. The "Pros" are at these auctions. It cash or certified funds to pay when the hammer drops. You own it with all defects & encumbrances.
3) Bank and REO Foreclosures:
These are pretty straight forward. The are listed for sale just like any other home on the MLS. You go view the home so you can understand what you are getting or not getting. Submit an offer and see what happens. Researching values and understanding repair costs helps you arrive at your offer price.
There are a few other ways to get foreclosure properties, these are the main avenues though.
If you want help in this arena give me a shout so we can meet up to discuss your real estate needs.
Morris “Bill” Austin ~ REALTOR® ~ Team Price Real Estate
Austin Texas Metro ~ Serving Sellers & Buyers successfully since 2007
Text ~ Email ~ Call ~ 512-709-6343 ~ bill@teamprice.com
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