Many pre-foreclosure homes that were once offered as short sales end up as foreclosures, which are eventually deeded to the bank. The reason why purchasers may refuse to buy a short sale home could be any of the following:
- Sellers stripped foreclosure home's assets and / or vandalized the property.
- Bank refused to accept less than its present mortgage balance.
- Buyers passed by the short sale in favor of a hassle-free purchase.
- Location of the home and / or neighborhood was undesirable.
- Listing was overpriced at mortgaged amount.
- Seller did not qualify for a short sale.
Not every foreclosure is a great bargain and some can morph into unexpected nightmares. There are drawbacks to buying foreclosures. Some foreclosed homes are diamonds waiting to be polished. Inexperienced foreclosure buyers might want to hire a real estate agent for guidance and assistance.
Here are places you can find foreclosures:
Real Estate Agents
The top producing agent in Sacramento specializes in listing foreclosures. I know who he is because I know how to enter the search values in MLS to bring up all the foreclosures. Consumers do not enjoy direct access to MLS like agents.
You can ask your buyer's agent to search for REOs and when you recognize a listing agent's name over and over, pull up that agent's profile and look at his or her listings. You will probably find a ton of foreclosures at your fingertips this way.
Real Estate Signs
Driving through neighborhoods where you want to buy is another great way to find foreclosures. The riders on the sign posts might say:
- Bank Repo
Call the agent's whose name is on the sign and inquire about other foreclosure listings that may be coming on the market. Agents who specialize in foreclosures sometimes wait weeks while bank management approves the list price, so you can get a jump on other buyers by asking about new foreclosures not yet listed.
If you are working with a buyer's agent, you can ask your agent to get this information for you.
Major bank Web sites
Many banks maintain online lists of foreclosed properties. Here are a few national lenders who maintain Web sites of bank-owned properties:
Asset Management Companies
Some lenders hire an asset management company to handle foreclosures on the lender's behalf.
- Wells Fargo uses Premiere Asset Services.
- Many subprime mortgage companies use HomeEq Servicing
- Keystone Asset Management is a national agency that deals with defaults.
- HUD - Housing Urban Development foreclosure homes.
- Fannie Mae foreclosure homes.
- Department of the Treasury - homes seized by the Internal Revenue Service.
- SBA - Small Business Association
Auction companies hold huge auctions, sometimes selling as many as 100 homes or more in a single day. While many experts agree that auction companies often get higher prices due to the auction frenzy created among its bidders, sometimes you can find a gem in their inventory.
- Real Estate Disposition Corporation
- J. P. King
- United Country Auction Services
- Williams & Willaims
Internet Foreclosure Companies
Web-based foreclosure companies charge a fee for providing you with a list of foreclosure properties. They reason that it takes time, trouble and expertise to locate and assemble accurate national foreclosure lists. You may find it is worth it to let these companies search for you:
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.