During our travels throughout our real estate representation business, we have come across some really clever strategies to buying foreclosures, short sales, bank owned listings, real estate owned properties and other “distressed” types of housing.
It all started when the market turned to a majority of Foreclosures and Short Sales back after the fall of 2007. We were asked by Citi Bank to be their agents in their representation of the selling off of their REO assets.
There was a lot of training involved, passing of tests and constant grading of our performance.
It was a great experience and now that the market is returning to the normal levels of distressed real estate for sale, that “need” has died down.
However, there are still foreclosures, bank owned, reo, short sales and other types of distressed homes in any real estate market, even a healthy one. (see below for the links to the foreclosures)
When a real estate market is healthy, about 1% of the homes that are for sale are of the Foreclosure and Distressed Variety. Currently we are more than the 1% mark when it comes to the current distressed real estate inventory in the Santa Clarita Valley Cities. Side note – not much more. 25 Foreclosures are currently on the market for sale in the Santa Clarita Valley Cities. I also have a current lit of 119 short sales which are currently for sale in the SCV.
What I covered on today’s real estate radio show – our Foreclosure Intelligence broadcast, was where to find the short sales, foreclosures and other distressed property types.
I also talked about the best strategies in buying them.
What is Highest and Best when it comes to buying a Foreclosures or Bank owned real estate listings?
When you want to listen to the newest foreclosure real estate broadcast, just click on the player below this text.
Foreclosure Real Estate is not so hard to obtain. The bank just wants to have the best offer as the one they choose.
There is a two fold test to being the best offer. They are looking at their net and the type of financing and downpayment you are using.
To break it down further. They want to also see if you are going to constrict your inspection time frames, reduce escrow times, get an underwriter approval letter instead of a regular, run of the mill, garden variety pre approval letter, and what specific type of financing you are using.
Do you need financing or are you paying cash? – that could be a real game changer, especially if the cash offer if matching the highest “financed” offer the bank has received.
Love Letters for Bank Owned homes work too!
Have you every considered writing a letter about how much you want the home you are writing an offer on? Maybe including some verbiage in your contract (offer), which will advise the agent for the seller to have them review it with the offer?
It works – here is our latest Love Letter from Buyer to Seller Posting