Buying lists of foreclosures

By
Real Estate Broker/Owner with Riverbend Realty, Cape Girardeau, MO 2004008944

Just don't do it! The vast majorityMoney of bank-owned homes are listed by local real estate agents. If you want to purchase a foreclosure, just pick up the phone and call a local agent.

A bank-owned home, or foreclosure, is also referred to as an REO. That stands for Real Estate Owned. Seems counter-intuitive, doesn't it? Why call it "OWNED"  when it seems that those are the homes that are not owned? Well, they are owned--just by an institutional owner, and REAL ESTATE OWNED is an accounting term that simply categorizes the type of asset on the positive side of the ledger (the asset is real estate instead of cash or some other type of inventory).

Websites that force you to "pay to play" do not have more or better information than a real estate agent has. At best, they are charging you for a list you can get free; and at worst, they are looking for your personal information as part of a scam or pfishing operation. What you will get most often is a list that is grotesquely out of date or maybe even completely wrong. I try not to sigh audibly when I get phone calls on homes that were sold months ago. Almost 100% of the time, I find that the caller has paid for a list of foreclosures.

Websites that you might want to check on your own are www.homepath.com, www.homesteps.com, and www.bidselect.com. They are free sites. Homepath is the Fannie Mae website, and it has helpful information about the buying process as well as listings. Homesteps is the Freddie Mac website, and it also has listings and a wealth of information for home buyers. BidSelect showcases HUD owned homes, as well as others. The homes on all three of those websites, however, are listed with local real estate agents and should show up in the local MLS. In some locations, there may not be a local Fannie, Freddie, or HUD agent, however; and the "local" MLS may actually be some distance away. If that is the case, you can still find the name of a certified local agent on the Homepath, Homesteps, or BidSelect site. And if you really want to find an REO expert, contact one of the agents who also lists homes you find on those sites.

If you do find an REO home that you want to purchase, chances are you will need an agent to help you through the process. Why not have the help of that agent from the start? Most real estate commissions are paid by the seller (not YOU, the buyer), so the help of an agent will not increase your purchase price. Conversely, the purchase price will not be REDUCED if you try to go it alone, so don't go it alone. AND DON'T PAY for a list of houses. You can get that list free from a local agent.

Pick up the phone!

©2010 Liz Lockhart liz@lockhartlegacy.com (if you reblog, you must link back and leave copyright tag intact) Protected by Copyscape Originality Check

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If you are looking for a foreclosure in Cape Girardeau, Perry, N. Scott, or Bollinger counties, I am the region's most experienced REO agent. As the area's ONLY Fannie Mae direct listing agent, I list more foreclosure properties than any other agent in this MLS. I am among the few local agents approved to both list and sell HUD properties. Give me a call if you are looking for help with the purchase of a foreclosure property.

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http://www.homepath.com/  for Fannie Mae properties

http://www.homesteps.com/  for Freddie Mac properties

http://www.hudhomestore.com/ for HUD properties (foreclosures that were FHA financed)

____________________________________________________________________________________________

If you want up-to-the-minute real estate information, the only way to get it is to have an agent set you up on auto-notify with immediate delivery. Your listing information will come directly from MLS only when it comes from an MLS member. You willl not have to wait for the information to roll to those other websites, and you will not have to check multiple sources. It's free, so why not give me a chance to help you in your search?


NO OTHER SOURCE is as complete or as fast as your local REALTOR®’s source. This is not just an advertisement for REALTORS®--it is information about how the system really works.

Click to email Liz   Call on Liz Lockhart for A Higher Degree of Excellence

©2015 Liz Lockhart (if you reblog, link back and leave copyright tag intact) Protected by Copyscape Originality Check

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Rainer
68,618
Paul Kaplan
The Paul Kaplan Group, Inc - Palm Springs, CA
Mid Century/Modern homes in Palm Springs - www.Pau

Good post, amazing all the REO scams out there right now.  A realtor can help a client with their knowledge of the marketplace and neighborhoods.  Not all REOs are bargains!

Jun 25, 2008 03:12 PM #1
Rainer
17,111
Ginger Walker
Keller Williams Realty - Stafford, VA
Realtor e-PRO,CSP

Excellent advise!  It is silly to spend your money on these lists as most of the local REOs can be found by a realtor.

Jun 25, 2008 03:21 PM #2
Rainer
17,111
Ginger Walker
Keller Williams Realty - Stafford, VA
Realtor e-PRO,CSP

Excellent advise!  It is silly to spend your money on these lists as most of the local REOs can be found by a realtor.

Jun 25, 2008 03:21 PM #3
Rainmaker
507,437
Jerry Murphy, CRS, SRES
Long Realty West Valley - Anthem, AZ
Anthem, Phoenix, and Scottsdale AZ Real Estate

Thank you Elizabeth.  In this do it yourself society of ours I think people don't see the forest through the trees sometimes.  It's funny when you come across some of these people and expose them to new possibilities.  The looks on their faces are ones of indignation, like, how could someone else know more than me.  I look forward to your future posts about the R.E.O.'s. They are THE hot commodity down here in the Phoenix real estate market right now.

Jun 25, 2008 03:21 PM #4
Rainmaker
600,721
Associate Broker Falmouth MA Cape Cod Heath Coker
http://www.CapeGroup.com & http://www.REindex.com - Falmouth, MA
Heath Coker Robert Paul Properties Falmouth MA

There are as many REO list sellers as there were bad loan officers.  Here in MA you can actually get a lot of this info free if you know where to look.

Jun 25, 2008 03:22 PM #5
Rainer
8,100
Amy Bowman
Stonebrook Mortgage - Boise, ID

I receive a daily notice of default list from a company that actually goes down to the county every morning and gets the NODs for that day. I then forward to only a select few of referral partners that have really enjoyed receiving them.  Agents like these as it can be a way for them to get a listing if the person in default hasn't already listed it.  My heart goes out to any one in that position. Idaho isn't too bad as compared to other parts of the country, but I think people are hurting everywhere.  The good news is I did hear the NODs are slowing from this time last year (at least nationally).

 

Jun 25, 2008 03:28 PM #6
Rainmaker
304,009
Liz Lockhart
Riverbend Realty, Cape Girardeau, MO - Cape Girardeau, MO
GRI, Cape Girardeau Real Estate

I have a mixture of traditional and REO listings. There are differences between the two types of transactions, and I am AMAZED at the lack of knowledge on the part of REALTORS. I have fact sheets that I now post with all of my REO listings to educate other agents about the process. One sheet is for the agent, and the other is for the agent to use with clients.

 

I agree that this is a "hot topic" in real estate today, and I urge my fellow real estate professionals to get educated. I find that I have to kind of beat some agents over the head, while others read the info I provide and then phone me to ask questions.

 

The bottom line is: if you want your client to get the property, YOU have to learn how to play the game. And YOU have to educate your client. Otherwise, someone else will make the trip to the closing table!

Jun 25, 2008 03:32 PM #7
Rainer
26,954
Crystal Ledbetter
Texas Home Group - Montgomery, TX

Recently a client joined a pay site for the forclosure list, most of the homes were foreclosures about a YEAR ago and had already sold,

Jun 25, 2008 06:11 PM #8
Rainmaker
236,392
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

All the information they are selling is public record... It makes me crazy to think that people are paying for it!

Aug 02, 2008 05:25 AM #9
Rainmaker
304,009
Liz Lockhart
Riverbend Realty, Cape Girardeau, MO - Cape Girardeau, MO
GRI, Cape Girardeau Real Estate

Every time I get a phone call from someone asking about a foreclosure property that is long gone, I find that they have purchased some list or another.

Jun 12, 2010 06:05 PM #10
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Rainmaker
304,009

Liz Lockhart

GRI, Cape Girardeau Real Estate
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