how to buy a foreclosure that is not listed

Listings for recently foreclosed homes might not have a sales price, but most include the most recent sales price or the amount needed at auction to pay off the current mortgage.
Check your local paper’s public notice listings to find out which homes are going to be auctioned on the courthouse steps and the estimated date of auction.
The banks must run a public notice once a week for four weeks prior to the auction, so this gives you a chance to check out the neighborhoods of the upcoming foreclosures.
Using a agent usually means you must work her fee into the sales price of the home, but she might be able to give you insider information quickly and efficiently.

Depending on if its a Fannie or Freddie loan, you may be able to find the agent before it lists and ask to be notified…or have any agent sign you up for an automated email alert for that specific property…so you can make an offer the day it comes on market.
I have been successful in the past in contacting the listing agent BEFORE it came on the market, but it takes a bit of 'detective' work to first find out who the correct bank or asset manager agent will be and then who the listing agency is.
The ONLY thing you might be able to do to find a home PRIOR to it being listed (not the one across the street, obviously), is work with a real estate agent that participates at auctions.
They must hire an asset management company to control the property (there are hundreds throughout the USA), who in turn hires a real estate agent to list and sell the property.
The only way to do this is by getting it listed with a real estate agent, who put's it on the MLS which in turn will likely generate multiple offers, which will then increase the sales price.
If the person that was at the home told you that the lender was getting ready to list it, (and they were cleaning it) then, it most likely already has a listing contract on it with a selling agent.
It is very uncommon to contact a bank and be able to purchase a property not listed with a real estate broker.
Additionally the banks usually require for that selling agent to have it on the market for a period of time before they will review the offers so that they are more likely to get a higher offer for the home due to the competition.
When a property is managed by an asset management company, they will assign it to a real estate agent who does the in-person work necessary to prepare and list properties for sale.
Can you try to contact a bank before they list a home on the MLS? Sure, but in most cases they will either tell you it is unavailable, or they will give you the contact information for the real estate agent who has been assigned to list the property.
In this real estate market, there are a lot of foreclosed homes owned by banks, known as Real Estate Owned or REO properties.
(This is in Washington State and other states have different procedures.) The trustee deeds are recorded at the county within about a week or so, and you will be able to tell which bank has taken ownership of the property.
First, banks are not in the business of wanting to own real estate, and they do not have local staff to manage and market properties.
The original mortgage holder is a matter of public record in many states, but keep in mind that ownership of the mortgage often changes hands during the term of the loan and the original lender may have been replaced by a different bank.
Zillow views its latest site enhancement, which went live late Wednesday, similarly to when it shook up the real estate market in 2006 by debuting a site that listed individual home values, called "Zestimates," of for-sale and not-for-sale homes.
Zillow is displaying detailed information on about 1.5 million homes that are in but not yet for sale, in a bid to position itself as the go-to website for homebuyers.
Still, according to RealtyTrac, it takes an average of almost two years to foreclose on a home in the Chicago area, so a property listed in Zillow’s premarket inventory could be there awhile before it is officially listed for sale.
The homes listed in premarket inventory are properties for which a foreclosure has been filed against the borrower but the action is not resolved.
"What buyers can learn from this is what homes might be listed for sale soon, or they can actually try and buy the home out of the foreclosure process by making an offer to the owner or the bank," she said.
The dearth of available homes listed for sale is constraining the housing market at a time when there are indications the market has bottomed nationally and mortgage rates remain well under 4 percent for a 30-year, fixed-rate loan.
That so-called shadow inventory has been on the minds of real estate agents for years as they waited for properties in foreclosure to make their way through the process and return to the market for resale.
All the data that Zillow is making available is public information, but until now, accessing it typically required buying a subscription to a website or a trip to county courthouses, digging through individual case records.
Cataloging distressed homes that aren’t listed for sale may make it easier for buyers to approach would-be sellers and strike private deals, avoiding real estate commissions.
The process for the auction varies by state, but typically properties are sold as-is, where-is, subject to existing loan and liens, and require payment in full and in cash, at the time of sale.
Preforeclosures are much like any purchase of real property and you typically have the opportunity to get inspections, title insurance, and financing prior to completing the purchase.
It is also possible to purchase the property Subject To the existing loans; which is similar to assuming those loans, but does not necessarily require cash or good credit—this is the method often taught by late night promoters, and has risks that should be carefully considered.
Buying an REO is very similar to buying any home that is listed with a real estate agent, and you have the opportunity to do inspections, get title insurance, and get financing.
Opportunity Traditional Financing Subject-To Financing Title Insurance Inspections Eviction Required Overall Risk Pre-foreclosure Yes Yes Yes Yes No Low Auction No No No No Maybe High Bank Owned Yes No Yes Yes No Very Low 2.
If you value your time, we certainly hope you will consider using our service, which provides not only the information on these foreclosure filings, but also combines it with other public records, maps, and tools that can save you time searching, tracking, and managing the foreclosures you are interested in.
Properties are also typically sold while the owner or renter is still living there, which means there is no opportunity to inspect the property, and you may have to do an eviction after purchase.
This will vary a lot depending on the stage of foreclosure, and whether or not the property is listed for sale.
Prior to the completion of the foreclosure process and the owner losing the home, you can purchase the property from the owner.
For those willing to work, and in some cases take some risk, foreclosures represent a unique opportunity for acquiring real estate at discount prices.
By far the riskiest method of purchasing foreclosures, buying at auction can also offer the deepest discounts due to these risks and the limited number of buyers willing to take them.
These real estate agents often handle the eviction and clean up of the property, in addition to listing it for sale.
If you are buying a preforeclosure, pay extra attention to the auction date if scheduled, since many properties are sold at auction despite being just days from closing escrow.
Now that you know which foreclosure stage or stages you you want to focus on, and your desired outcome, you are ready to start looking for foreclosures.
Other sources you should consider include foreclosures, new home projects, for sale by owner listings including Craigslist, and even local rental data.
One of the most difficult parts of buying real estate, foreclosure or not, is determining what price to pay.
If an investor fails to bid at auction, the property is essentially sold to the bank and becomes bank owned.
Most banks, however, do require that the property is purchased “as-is”, and may also impose other non-standard terms, so it is especially important to work with an experienced Realtor&reg that can explain these terms.
REALTOR®, realtor.com®, the spherical icon of a house within a circular map, the “WHERE HOME HAPPENS” tagline and stylized logo treatments including any one or more of the foregoing are trademarks of the NATIONAL ASSOCIATION OF REALTORS® and are used with its permission.
A: The bank sets the listing price on a bank-owned property, so it won’t matter if you call them ahead of time.
The property will likely go to auction if they are not willing to negotiate with you, so ask the listing agent who the bank uses to liquidate their properties.
Have you ever tried searching for the home on Redfin? Does it show up as a purple ‘Foreclosure–Not for Sale’? If it does, ‘favorite’ the home and the day the home goes on the market as a ‘MLS-listed Foreclosure’ you should get an email form Redfin about it’s updated status.
I had a client who did this–had stalked a property as a short sale, favorited it then, it disappeared off the MLS (when it was foreclosed upon) and was notified by us the day it came back on the market as an MLS-listed Foreclosure.
Why didnt you buy it when your family member was in trouble? You now have to wait until it comes on the market, if it comes on as a freddie mac or fannie mae, you may have to wait again for a while if you are not planning on making it your principle residence.
The attorney’s office that handled the foreclosure should be able to give you the name of the asset manager handling the file.
Many foreclosures in the multiple listing service are not listed as "foreclosures", this is because the sellers often do not want buyers (or their neighbours) to know that they are in foreclosure (that they are desperate to sell).
Banks Role in the Foreclosure Process This video explains a bank’s role in the foreclosure process, how property owners arrive at the point of foreclosure and how to deal with banks when in a foreclosure situation.
At this point, it becomes known as a bank foreclosure or an REO (real estate owned) property.
If a borrower defaults on the loan the FHA uses the money from the mortgage insurance premiums to compensate the mortgage company or bank (in other words, bails the lender out).
After the loan officer pre-qualifies you for a home loan, you will need to seek out a real estate broker or agent who is registered with HUD (FHA) to submit your bid on the foreclosed home.
The mortgage broker or loan officer will give you an estimate for the down payment, closing costs and mortgage payment.
HUD (FHA) requires the agent to submit a mortgage preapproval letter from the mortgage company attesting to the probability of receiving a mortgage.
Realtors® are used because of their expertise in the local residential real estate market and because HUD does not have sufficient personnel to show properties to prospective buyers or to assist home buyers in other aspects of home buying normally handled by real estate agents.
Home buyers must obtain financing through a mortgage lender or pay cash.
Use this mortgage calculator to find loan payment.
The first step to purchasing an FHA foreclosure or any house for that matter is to seek out a mortgage company for preapproval.
By using the existing appraisal you can save time and not waste energy explaining to the new appraiser that the house is a foreclosure and that is why they can not reduce the value based on small cosmetic issues.
I bought a HUD property without using a inspector but after reviewing the property again their were tree roots growing under the disrupting the foundation,when the time came to close I told him i didn’t want the and I got my earnest money back.
Not understanding how to make money buying a foreclosure is a missed opportunity! Because the house is a foreclosure the Federal Government will allow you to include most planned repairs into the mortgage amount.
Often you can use the existing appraisal when getting a government insured loan but it can depend on the banks policies.
A listing agent is hired by the asset manager to sell the property for whatever price the listing agent can sell the property for based on other comps in the area.The listing agent also takes into consideration the minimum amount the bank is willing to accept to allow the sale to go through.
The asset manager gets what are called broker price opinions (BPO’s for short) which are merely opinions of what the property would sell for provided by local real estate agents that serve the community where the property listed.
Fannie Mae, one of the largest sources of foreclosed homes on the market, sold 55 percent of its repossessed houses to individuals, non-profits and local governments last year, compared with 57 percent in 2012 and 59 percent two years earlier, according to a regulatory document.
“While we applaud the newly introduced Fannie incentives program for REO purchase by potential owner occupants, we are concerned it will be no more effective than existing ’first look’ policies, which have failed to significantly expand homeownership opportunities for first-time homebuyers and others who wish to live in the homes they purchase,” the groups, including the California Reinvestment Coalition and the National Community Reinvestment Coalition, said in a March letter to federal regulators.
To learn more about all aspects of the home buying process, including buying foreclosed homes, fixer-uppers, and others, get Nolo’s Essential Guide to Buying Your First Home, by Ilona Bray, Alayna Schroeder, and Marcia Stewart (Nolo).
Auctions often attract hard core investors who have the cash to flip the property (sell within a short period for a profit) and others who’ve been around the foreclosure block a few times.
Here are the pros and cons of buying a foreclosed home at each step in a typical foreclosure process.
Months after the buyer first defaults, assuming he or she doesn’t bring the loan current, the lender attempts to auction off the property.
Area Search – Browse Foreclosure Homes For Sale by Area Price Search – Browse Foreclosure Homes For Sale by Price Things to consider when including foreclosed homes in your search.
The Albuquerque MLS provides a field called “Bank Owned” to search for these homes that are for sale in Albuquerque, Rio Rancho and the metro area.
In most cases the homes that have been foreclosed are now owned by a bank or a Government agency like HUD, and will be listed with a REALTOR and placed in the Multiple Listing Service (MLS).
I have a question, I filed chapter 7 bankruptcy about 5 years ago (looking for my papers to get date) I filed on a home my ex got in our divorce and business and credit card loans that went bad but not on a home I already owned and paying mortgage on.
WE ARE OUT OF CH 13 1-1/2 YEARS NOW WE ARE TRYING TO BUY A NEW HOUSE WE HAVE OUR OLD FOR LEASE WITH PAYING THE MORTGAGE ,OTHER BILL ON TIME OUR CREDIT CARD WAS PAYED OFF TO TRY AND BRING UP THE SCORE BUT IT IS STILL THE SAME THIS MONTH OUR SCORE IS AT 597 EQU, SO CAN YOU HELP US.
Our real concern is…If we get credit scores up and we have not been late on mortgage in over 2 years and we have stable jobs…When can we really get another house? We currently have FHA loan but we want to use our VA eligibility like we did on our very first home….We are both veterans.
I managed to keep my personal property through the bankruptcy and have been paying the mortgage on time for the last 9 years.
My wife and i had a child born with special needs 2 years ago which forced her to leave her job, costing us about $50k a year, I tried to keep up with bills and mortgage payment but just couldn’t at the time, my wife had numerous credit cards and a 2nd mortgage.
Yes there are some mortgage companies who will give you a new loan once you are two years out of the bankruptcy, if you can show you have paid the existing mortgage on time; and if you can show ti’s now rented at enough to cover the mortgage.
If he files a Chapter 13, how long would it take before we’d be able to look into getting a home loan together? My annual income is 53,000.00 and I work for the government, so guaranteed secure employment, and he has been in his job for 23 years with the city and makes nearly 83,000.00. I’m sure I’d get approved for a home loan but in order to buy the home we would want to retire and grow old in, I’d like to be able to combine our incomes and get approved for a larger amount.
Buyers tend to believe that banks will do anything to unload foreclosures, including letting the buyer buy that foreclosure for 50% of its value or less.
When buyers watch TV news reports that sensationalize foreclosures or read headlines that foreclosure filings are increasing, it’s normal for buyers to automatically jump to the conclusion that banks are desperate.
Market value might be 50% less than the last time the home sold, but that foreclosure price will generally reflect the value of the homes around it.
If a home buyer or an investor wants to buy a cheap foreclosure, it’s easy to assume that all foreclosures sell for pennies on the dollar.
Where to Find a Cheap Foreclosure to Buy I often receive calls from investors asking me about buying a foreclosure very cheaply, and the truth is it’s rare to find such a listing in MLS .
Why the Price of a Foreclosure Can Appear Cheap You can buy a foreclosure generally for much less than its original loan balance, especially in a declining market.
To find a cheap foreclosure, buyers need to reduce the competition for that foreclosure.

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