There is a particular way to buy a foreclosure
This is a loaded question – with a lot of variants, but I will give you some tips that we use for our real estate clients when approaching a Foreclosure or Bank Owned property for sale in the Santa Clarita Valley and in Surrounding communities.
First – you are going to want to find out who owns it. Has it been listed for sale by a Real Estate agent within the local Multiple Listing Service system?
If it has not been listed and after you get the Intel on who the owner is – you will need to find out the best ways to contact the current owner. The owner on those real estate properties that have foreclosed will either be a bank, investor(s), or a singular party that purchased this property at an auction.
If the Foreclosure is listed on the MLS – you will want to have your agent find out how many days it has been listed. Also, get your agent to give you comparable’s for the same area. Make sure you pay particular attention to whether your agent is giving you “Apples to Apples” comparisons within a less than six month time frame. With a Multiple Listing based foreclosure listing – it is also important to find out which bank is behind the sale.
Different banks have different Motus Operandi which you can use to your advantage.
Without the listing being on the “for sale” market via the Multiple Listing Service, you will want your Savvy Real Estate agent to contact the owner(s) and sell them on the fact they have a Qualified Buyer that is interested in acquiring their distressed property. Notice I said “savvy” – the agent you are hiring to do the recon and hunting will have to understand the “foreclosure talk” that the banks or investors will find receptive.
Agents with experience counts
There are a lot of ways in which to approach buying a foreclosure in the Santa Clarita Valley or elsewhere in the USA. Just make sure your real estate agent has the experience to approach banks and investors on your behalf.
Some of the questions I would ask of a real estate agent, to find if they are of the savvy variety, are the following:
- How long have you been a full time real estate agent? – Size them up, some agents have “spousal back up” with regard to income – in some cases they don’t “depend” on their Real Estate business to survive. The ones that do can have a much larger skill set.
- Do you work with any banks directly in the sales of their foreclosure assets or inventory? – This too can make the difference between Savvy and Not so much so. If they work with REO Assets, they are going to know the “insider” route to getting you what you want.
- Mr. Mrs. Agent, do you have access to pre-foreclosures and “not on market” bank owned inventory? If they have access points for these types of distressed assets and can show you where you can find them, you will know they are in the”foreclosure know” business, if they have set up these resources for their clients.
If you are not working with a Realtor versed in the handling of Bank Owned Foreclosure assets – We can help – fill out the form below or call us!
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