The Hottest Foreclosures In Ct
Check out this charming 3 Bedroom, 1.5 bath Cape. This home is ready for a new owner, property has been remodeled in recent years, newer roof, windows, siding, fenced yar…
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REO Occupied NO ACCESS OR VIEWINGS of this property. Please DO NOT DISTURB the occupant.Built in 1960, this two story home, offers 4 bedrooms, 2 1/2 baths with ~2,600…
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Wonderful 4 bedroom Cape Cod style home with garage located on the west side of New Britain is now on market! Located just minutes away from all major transits and shoppi…
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Just a short walk away from Wooster Park, tremendous opportunity awaits at 147 Porter St. This lovely Cape Cod style home is ready for its new owner. Offering over 1,500 …
Why Agents Should Focus On Foreclosure & Reo Listings
As real estate agents identify niche markets and client types to focus on, in most cases theyll pick one that is not only lucrative but also has less competition. Focusing on foreclosure and REO listings is less competitive because it requires extra work to obtain listings. However, once obtained, these listings dont typically get reassigned to another listing agent, and the relationships developed can continue to produce leads going forward.
To get foreclosure and REO listings, its important that you understand the market and know the proper steps when dealing with lenders and government agencies. Unlike an average homeowner selling a property, mortgage lenders and government agencies have unique monetary objectives and oversight requirements that must be met.
Foreclosurecom Delivers The Best Real Estate Deals First Well Before They Hit The Mass Market
As you know, perfect timing not just “location, location, location” is critical when it comes to purchasing a new home and/or investment property at the right price. That’s because competition drives prices up. At Foreclosure.com, we target low-priced distressed deals bank-owned homes, government foreclosures preforeclosure listings, real estate owned properties and foreclosure auctions, among others and pass them onto smart homebuyers .
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Discuss Options For Selling A Home In Pre
Not all pre-foreclosure home sales are short sales . If your client’s mortgage isn’t upside-down yet, a pre-foreclosure sale is similar to a regular home sale, with the difference that:
- Your timeline is shorter
- Much of the proceeds of the sale will go to cover the unpaid balance of the mortgage, as well as lender penalties and unpaid mortgage interest
The advantage for your client is that homeowners who sell their homes while they’re still in pre-foreclosure can evade the negative repercussions of having a foreclosure listed on their credit score.
Clients who sell their homes in short sales will also have more mortgage-friendly credit reports than homeowners who were foreclosed on. In fact, they’ll even qualify to apply for future mortgages, should their financial situation improve.
Why Buy A Foreclosed Home
If you wonder why you would buy a foreclosed home, the most common reason is a solid value. A lower price is certainly not out of the question with an REO property.
Quite often, foreclosure sales can also present the opportunity to create sweat equity in the property. If the foreclosure isnt in the best of shape, a buyer can fix it up the way they would like it to be. Some properties need extensive repairs which can lead to an even lower purchase price.
If youre handy thats a bonus because youll be able to make the necessary repairs.
It is also possible a foreclosure is just another house that offers the perfect location, the neighborhood you would like to be in, or the school district you are looking for. Who knows maybe the home is in good shape?
Foreclosed homes dont necessarily have to be the best bargain in town for them to be a worthy purchase. A low price could be a secondary concern if you find the home of your dreams.
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Get A Preapproval Letter
Preapproval letters detail how much money you can borrow based on the lenders thorough assessment of your finances, including credit score and income. Its always good to be prepared, Sklar says. Having your proof of funds will make it an easier transaction.
Youll also want to consider what kind of loan to get preapproved for. Foreclosed properties often require repairs or upgrades, and an FHA 203 loan can help. These loans allow buyers to finance up to $35,000 for repairs.
Foreclosures often get scooped up by real estate investors who pay cash. But dont let that discourage you many lenders will help you find the right financing to buy a foreclosed home. Find a mortgage lender who understands your goals.
Benefits Of Buying A Foreclosed Home
- Lower prices: One undeniable benefit is that foreclosed homes almost always cost less than other homes in the area or they are listed below market value. This is because theyre priced by the lender, who wants the home off of their books.
- Standard loan configurations: You might have to follow a slightly different bidding and buying process when you buy a foreclosure, but you still have a few loan options as long as its not a cash-only auction. As long as the home youre considering is in livable condition, you can get a conventional loan or a government-backed VA loan, FHA loan or USDA loan to buy it. Government-backed loans can make homeownership more affordable, but you if the property is damaged, the government may require work to be done.
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The Steps To Making A Foreclosure Investment
Buying a foreclosed property is easier than you think. Here is how you can do it in a few simple steps.
1- Secure a mortgage
Before thinking of hiring a foreclosure specialist, you must first secure a mortgage to finance your real estate investment. In fact, you will have to get a loan preapproval before starting the search process. You have the option of obtaining a loan from the same bank that is selling the property. This might seem like a conflict of interest, but in fact, banks keep the loan issuing department and the foreclosure department separate.
2- Find a foreclosed property to invest in
The next step is finding the ideal foreclosure property to invest in. There are several options that are available to you here. Most novice investors opt for hiring a foreclosure real estate agent that can guide them through the entire process. Experienced investors, on the other hand, are more likely to take on the project by themselves.
Even as a beginner, working with a real estate agent or a foreclosure specialist is not your only option. As a matter of fact, you can find and analyze foreclosures right here on Mashvisor! The Mashvisor Property Marketplace features hundreds of foreclosure listings and boasts a plethora of valuable data that can help you identify the perfect investment opportunity.
3- Finalize the real estate deal
Final Thoughts On Buying A Foreclosed Home
Hopefully, you now have a better understanding of how to buy a foreclosed home or short sale. Remember to enter these kinds of real estate transactions with your eyes wide open.
It is advisable to have a team of professionals to consult with when essential questions come up. Always do any necessary due diligence when purchasing a foreclosed home.
While purchasing bank-owned property can be appealing, it doesnt always come without risks. Hopefully, you now understand how to buy a foreclosure and understand all the risks involved.
About the author: The above Real Estate information on buying a foreclosed home was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at or by phone at 508-625-0191. Bill has helped people move in and out of many Metrowest towns for the last 34+ years.
Are you thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!
I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
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The Bottom Line: Is Buying A Foreclosed Home Right For You
Buying a foreclosure can be a unique opportunity for homebuyers looking to pay lower prices or below market value or for complete home restoration projects. Keep in mind that many foreclosed homes could have severe damage and structural issues, and are usually sold as-is.
Get in contact with an experienced real estate agent if you want to take a risk on a foreclosure. Your real estate agent will help guide you through the foreclosure process, because most lenders dont sell to individual buyers.
Once you find a home youre interested in, get an appraisal and property inspection completed. Youll also need to secure funding with a mortgage preapproval. Follow up with your lender and agent to finalize the sale once the results of your inspection look acceptable.
If youre ready to get a mortgage approval, get started online!
Find a local pro.
Working With A Foreclosure Specialist
Like we mentioned earlier, hiring a foreclosure specialist is one of the options that are available to real estate investors. Letâs explore how these professionals operate.
What is a foreclosure specialist?
As the name suggests, a foreclosure specialist is a real estate professional that specializes in foreclosure deals. This includes everything from helping distressed homeowners restructure their loans to assisting investors with the purchase of a foreclosed property.
What does a foreclosure specialist do?
The job of a foreclosure specialist entails several duties. When working for a homeowner, a foreclosure expert will go over a litany of paperwork in an effort to find the ideal resolution for the client. Furthermore, they maintain close contact with all the parties involved to ensure that the process is progressing smoothly. When working for a real estate investor, the foreclosure specialist will do all the groundwork for the client. This includes finding suitable foreclosed properties and carrying out investment property analysis on them.
How do you find a foreclosure specialist?
If you have never worked with foreclosure specialists before, then you are probably asking yourself âHow do I find foreclosure agents near me?â Here are a few ways you can find one with ease:
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How Do I Become A Foreclosure Agent Specialist
Foreclosure is an unfortunate reality facing home loan borrowers in dire financial circumstances. As of June 2021, an estimated 2.3 million Americans had not resumed making monthly payments following the pandemic putting them at risk for foreclosure or forced sales, according to the Columbus Dispatch.
The boom of foreclosures has led a number of real estate agents to earn training as foreclosure specialists to help families in foreclosure sell their homes. Foreclosure specialists work on the other side of real estate transactions as well, helping buyers purchase foreclosure properties for investment or as permanent residences.
Conduct An Appraisal And Inspection On The Property
Inspections and appraisals are both crucial when it comes to buying a foreclosure. An appraisal is a lender requirement that lets you know how much money a property is worth. Lenders require appraisals before they offer home loans because they need to know that they arent lending you too much money. An inspection is a more in-depth look at a home. An expert will walk through the home and write down everything that needs to be replaced or repaired. Because foreclosures usually have more damage than homes for sale by owner, you should insist on an inspection before buying a foreclosed home. Sometimes, you dont get the chance to order an inspection or appraisal before you buy. You should only consider buying foreclosed properties if youre advanced at home repair.
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What Are Reo Properties
Real estate owned properties, or REO properties, are houses that have been seized by banks or other lenders from people who are unable to pay their mortgages. Essentially, its a foreclosure that has been seized by the bank. When real estate lenders offer mortgage loans, they see them as an investment, because they will earn money from the interest on the loan. So to salvage their investment, banks foreclose on homes with unpaid mortgages and sell the properties at a foreclosure auction. If a home doesnt sell at auction, it becomes an REO. Theres a subset of REO properties that are owned by the government. They are called Hud houses, and they often sell well below to eligible participants.
Connect With Asset Management Companies
Asset management companies are hired by banks, lenders, and property investors to manage assets on their behalf. This typically includes maintaining the property, participating in the eviction, and handling the marketing and sale of the property. There are many asset management firms that specialize in foreclosures and REO properties with the objective of minimizing any loss to the lender or owner.
Developing relationships with asset managers gives you opportunities to provide a broker price opinion , which can help you get available foreclosure and REO listings. BPOs provide an estimation of the price of the property based on its characteristics. Getting to the final pricing suggestion is fairly complex, similar to a comparative market analysis, which is commonplace for the traditional sales process. There are a few things to understand before finalizing and submitting a BPO:
- Costs: Potential costs associated with getting the property ready for sale
- Real estate market: Market trends that may affect pricing at the given moment
- Neighborhood: Current neighborhood quality and characteristics
- Comparables: Sold comparable properties in the area to estimate possible pricing
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What Is A Foreclosure
Foreclosures happen when a lender takes a property from an owner who has fallen behind on payments and defaulted on their mortgage. Lenders will then try to recoup as much of their investment as possible by selling a foreclosed home for slightly less than it might be worth. In the right situation, you are getting something below market value because the bank is motivated to get the home sold, says agent Rose Sklar of the Sklar Team at Coldwell Banker in Weston, Florida.
How To Find A Foreclosure
Ensuring your source is reliable can save you time and money.
Want to buy a foreclosure but dont know where to start? Seasoned investors know where to find foreclosure listings, and there are plenty of unscrupulous companies out there that have built ad-based, subscription websites to pull you in. Just beware: Many of these sites are filled with listings that are often inaccurate or outdated.
Below are eight ways to find foreclosure listings:
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The Verdict On Hiring A Foreclosure Specialist
Hiring a foreclosure specialist can significantly facilitate the purchase of a foreclosed property. This especially applies to novice real estate investors. Having said that, this is by no means an affordable option. Specialized real estate agents command high fees that can eat into your margins. More importantly, the advent of all-encompassing platforms such as Mashvisor has made it possible for investors to search for and analyze properties without the need for professional guidance.
Purchasing A Foreclosed Home
If buying from a bank, youll need to sharpen your bargaining skills and start with a lowball offer on the property you want.
Banks that have accumulated sizable inventories of foreclosed properties will be more inclined to negotiate on price. The longer the bank has held the property, the greater the odds that it will seriously consider low offers.
You could make an initial bid at a price thats at least 20% below the current market price, or even more if the property is located in an area with a high incidence of foreclosures.
If you can pay for the property and any necessary renovations in cash, youre in an enviable position. Thats why some buyers decide to team up with outside investors who can help them out on the front end and share any profits when the home goes on the selling block once again.
In fact, cash deals represent a sizable portion of REO sales.
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Know That Foreclosures Are Offered As Is And Act Accordingly
Foreclosures can be great deals, but they can also be nightmares if you are not careful. The bank is trying to sell the property as it is.
Unlike a regular homeowner, the bank is not usually willing to make repairs or other property fixes before selling it.
When buying foreclosed homes, you could wind up with a disaster if you are not careful before you buy them.
Always get a foreclosure inspected by a home inspector before you hand over your money.
Youll want to know that the home does not have any major issues that will be prohibitively expensive to fix after your purchase. The cost of repairs could be much more than you bargained for.
You do not have to get a home inspection, but your agent will advise you to regardless. Remember, you are not buying a new home.
Being sure that things like the foundation, electrical system, plumbing, and roof are in good enough shape to justify the purchase is critical. Otherwise, you could spend more making the home habitable than you would have from just buying from a regular seller.