What is the strategy for purchasing properties that are owned by a bank?
I went to the link above and found two properties in my area. They are both over priced for the neightborhood and have real estate agents representing them.
Unless you can talk them down significantly, I don't see how this could be profitable.
Any thoughts on how to make money in this approach is appreciated.
The way the market is going, the banks are trying to gain a profit instead of just paying off the mortgage plus lawyer fees.
You can't get a very good deal. The best time to buy the REO is at the end of the year. The bank might not want to continue holding onto the property and would be glad to get it of their books.
I now invest in pre-foreclosures. And I can profit from the sale. Not the Bank!
[ Edited by dballard on Date 09/11/2003 ]
Correct me if I am wrong but the banks actually lose money on the reo's if they hold them long enough. You have to remember, they arent making any money if nobodys paying and they now have to cover insurance and taxes to protect their investment. Of the three foreclosures( crack houses) I have purchased, the bank never even hesitated to give them to me and I even got them 30% off the listing agents price. They were actually glad that somebody bought them.
[addsig]
I wanted to add another word. oops !! left it out--
Many Investors in this site share their secrets. I have checked around. This site has most generous investors that regularly answer question to both newbies and seasoned investors....
Post your question openly for an answer and check through the archives also. There may be some old postings that answer to many of your questions--
Cheers!!
I have found RealtyTrac to be very unreliable or outdated. I am a realtor and I actually paid to become an agent on the site, and now I am dealing with people asking me to help them buy a property that is not in foreclosure, already sold and worst of all, and very often, showing a price of 30k less than the list price. So my advice is save your money. They are not giving good info. Good Luck
In my area, I found the realtytrac information to be garbage. They have a fraction of the properties that are actually being foreclosed on and most of the information is way out of date
My thoughts on realty trac... I found a foreclosure in my area because of them (bought and made 50k equity). But for some reason the rest of there information for my area has been terrible. The one "equity hit" paid for it but I have since cancelled my subscription due to the lack of quality info. Looking for more deals but none of the ones I been chasing lately have even appeared on the site. I am more than willing to pay for current info!!
Sometimes tracking down mortgage people that can ACTUALLY talk to you is difficult.
You may want to send a letter or call the foreclosure attorney that did the sale. The attorney is the representation for the mortgage company and is legally bound to pass along your offer to purchase the property to its client... Chances are is that he knows the right person to contact...
Not sure about Texas but here in Alabama there is a one year right of redemption.. So if something goes back to the bank it may be a year before you can buy the property... Each state has something different...
Please post the websites. I am interested REO's too.
Bank of America lists their REO's on their web site.
http://www.bankofamerica.com/state.cgi?section=help&update=yes&cookiecheck=yes&quser=reo&box=&template=results.cfm&lob=
What is the strategy for purchasing properties that are owned by a bank?
I went to the link above and found two properties in my area. They are both over priced for the neightborhood and have real estate agents representing them.
Unless you can talk them down significantly, I don't see how this could be profitable.
Any thoughts on how to make money in this approach is appreciated.
Email me for a list of at least 5 sites. System would not let me post.
The way the market is going, the banks are trying to gain a profit instead of just paying off the mortgage plus lawyer fees.
You can't get a very good deal. The best time to buy the REO is at the end of the year. The bank might not want to continue holding onto the property and would be glad to get it of their books.
I now invest in pre-foreclosures. And I can profit from the sale. Not the Bank!
[ Edited by dballard on Date 09/11/2003 ]
dballard,
Correct me if I am wrong but the banks actually lose money on the reo's if they hold them long enough. You have to remember, they arent making any money if nobodys paying and they now have to cover insurance and taxes to protect their investment. Of the three foreclosures( crack houses) I have purchased, the bank never even hesitated to give them to me and I even got them 30% off the listing agents price. They were actually glad that somebody bought them.
[addsig]
if you are looking local go to the baks themselves and get on there e-mail or fax list..... I am!
Bank of America, First Union Bank, ****Must Reach Senior Investor status before posting URL's***.
Try searching on the internet for other banks that you know. If they loan mortgage money, they are bound to have foreclosures.
http : / / w w w . o c w e n . c o m
Sometimes has some good stuff....
NOTE: remove the spaces....
I wanted to add another word. oops !! left it out--
Many Investors in this site share their secrets. I have checked around. This site has most generous investors that regularly answer question to both newbies and seasoned investors....
Post your question openly for an answer and check through the archives also. There may be some old postings that answer to many of your questions--
Cheers!!
I have found RealtyTrac to be very unreliable or outdated. I am a realtor and I actually paid to become an agent on the site, and now I am dealing with people asking me to help them buy a property that is not in foreclosure, already sold and worst of all, and very often, showing a price of 30k less than the list price. So my advice is save your money. They are not giving good info. Good Luck
In my area, I found the realtytrac information to be garbage. They have a fraction of the properties that are actually being foreclosed on and most of the information is way out of date
My thoughts on realty trac... I found a foreclosure in my area because of them (bought and made 50k equity). But for some reason the rest of there information for my area has been terrible. The one "equity hit" paid for it but I have since cancelled my subscription due to the lack of quality info. Looking for more deals but none of the ones I been chasing lately have even appeared on the site. I am more than willing to pay for current info!!
http:// www. searchsystems. net/ list.php?nid=173
May have some helpful research tools for you...
NOTE: Remove the spaces from the address above...
There are two WaMu branches in his (our) area.
Sometimes tracking down mortgage people that can ACTUALLY talk to you is difficult.
You may want to send a letter or call the foreclosure attorney that did the sale. The attorney is the representation for the mortgage company and is legally bound to pass along your offer to purchase the property to its client... Chances are is that he knows the right person to contact...
Not sure about Texas but here in Alabama there is a one year right of redemption.. So if something goes back to the bank it may be a year before you can buy the property... Each state has something different...