Foreclosure Buying Made Simple

by Tony Hammer of Tony Hammer Group of Condos & Homes ( 20-Feb-2009 )

Foreclosures seem like a big mystery to mostly everyone. There’s so much information about Real Estate and other things out there that most people are totally confused.  We can thank the internet for being invaluable and also supplying us with so much info we don't know what's really going on. I think at times James Bond couldn't figure out how to buy a Foreclosure.  Where do I look for them ? Who sells them ? Are they legitimate ? How do they happen ? Where do they pop up from ? Can I buy one ? Are they for real ? Can I really buy a house that cheaply ?  Will they Explode ? Anyway.....I am going to try and simplify the confusion. To start with Foreclosures are properties owned by the bank because someone did pay their mortgage. The bank in turn takes the property from them.   Now what do they do ? They have to find a way to sell these properties. Remember the bank is not in the Real Estate Biz. That's where people like me come into place. The bank gives the property listings to Realtors to market, maintain and sell. Realtors advertise them with the Multiple Listing Service and a host of other sources like internet, print and so on. Now I guess you wondering where do you come in ? Simple ! All Real Estate Agents have access to all the Foreclosures through the Multiple Listing Service. How do you buy one ? Simple: if you want to buy a Foreclosure just contact your local Real Estate Office or Realtor and ask that person to show you properties listed as Foreclosure. The next step is to find a property you like and make an offer. This is where it could get complicated and you need to find an experienced Realtor who will understand how to handle the negotiation, You are not buying the house from a normal seller. You are buying from the bank ! The bank has no emotional involvement about the offer. They want to sell the property and have the process go as smoothly as possible without wrinkles. So what do you do ? Find a Realtor who understands the necessary paperwork and process involved. You will need to supply a deposit and proof of funds or a legitimate pre-qualification approval letter from a lender. The bank wants no hassles and wants to know you have the MONEY ! The other factor is YOU and the REALTOR need to be conscientious about the timing. Timing is crucial in the process. The bank doesn't want to waste time waiting for the MONEY or the Contracts to be signed. Foreclosures are a fantastic opportunity to buy a property at a reduced market value. I wish everyone good luck in their property hunting. Tony Hammer Certified REO (Real Estate Owned by the bank). Foreclosure & Luxury Property Specialist