U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > U.S. Forums > Colorado
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 11-09-2010, 09:25 AM
 
2 posts, read 5,928 times
Reputation: 10

Advertisements

I am moving to Brighton Co. I was wondering how a foreclosed home works?? I've been searching and saw there are a LOT of foreclosed homes in Brighton and pretty much all over Denver. I also, saw the banks sometimes negotiate the apprasied price. My question is "how much". How low are they willing to go with the appraised price??? $10,000. or $20,000. or more or less?? Please, someone who has dealt with, selling or buying a foreclosed home. It will help me a little better on how much "house" I can get with a "cost". Also, is it worth messing with a foreclosed home. Are you allowed to walk through and see the house before you make an offer. All advice will be greatly recieved, thank you much!! Kim
Reply With Quote Quick reply to this message

 
Old 11-09-2010, 09:56 AM
 
Location: Golden, CO
2,181 posts, read 5,855,607 times
Reputation: 2075
My advice is to find a realtor. A realtor can show you homes, regardless of whether or not they're foreclosures, and could help you with making an offer and negotiating the price.
Reply With Quote Quick reply to this message
 
Old 11-09-2010, 10:13 AM
 
11,273 posts, read 45,599,146 times
Reputation: 15193
If you have no experience with the home buying process, you'll be best off to work with a realtor who can show you foreclosed properties.

If you have experience with the home buying process, then you can contact the lenders directly for their "repo" file properties.

As far as pricing goes, much will depend upon condition, location, and how long a property has been in a repo file. In past years, I've bought properties for 50 cents on the original dollar valuation ... where the bank holding the paper needed or wanted to get the property out of their files. Those properties, however, weren't in "market ready" condition, and needed work to bring them back to habitability and presentable condition. It helped that I was a cash buyer, too. Don't expect a lender to heavily discount a house that is in tip top condition in a desirable market ....
Reply With Quote Quick reply to this message
 
Old 11-09-2010, 10:20 AM
 
Location: Sun City West, Arizona
29,629 posts, read 12,696,676 times
Reputation: 23078
I talked for quite a while with a real estate broker a couple of years ago when I was selling my house and we were trying to determine the right sales price. She cautioned me about ever deciding to buy "short sales" and foreclosed homes because she said you can get caught up in months and months of glitches. I'm not sure how true that is. Any thoughts?
Reply With Quote Quick reply to this message
 
Old 11-09-2010, 11:02 AM
 
11,273 posts, read 45,599,146 times
Reputation: 15193
Quote:
Originally Posted by phetaroi View Post
I talked for quite a while with a real estate broker a couple of years ago when I was selling my house and we were trying to determine the right sales price. She cautioned me about ever deciding to buy "short sales" and foreclosed homes because she said you can get caught up in months and months of glitches. I'm not sure how true that is. Any thoughts?
The potential for a lot of time and glitches is there with most of these deals.

There's a lot of extra hoops to jump through, and it may take time for the lender to accept the offer, sellers to come up with additional funds, and so forth. It's not uncommon to have defects in the property, either, which can affect a new loan approval.

From an agent's standpoint, there may be a lot of "extra" work to complete a deal to reach their earned commission. They have a vested interest in getting the easiest, most straigthforward deal possible ... it makes their day when the seller is readily able to make a decision on a reasonable offer from a capable, qualified buyer. In my experience, most agents simply don't want to deal with all the hassles of short sales or foreclosures ... and then again, there are agents who specialize in these deals and work with them all the time. If I was considering a particular brokerage in a market, I'd want to work with the agent in-house who does most of these deals ... you need to ask who that is and seek that agent out. There's more to finding a suitable RE agent for your needs than simply walking in the door of an agency ... not all agents have the same skills or abilities, even though they hold the same professional license.
Reply With Quote Quick reply to this message
 
Old 11-14-2010, 08:17 AM
 
Location: Colorado Springs, CO
2,221 posts, read 4,839,370 times
Reputation: 1702
Quote:
Originally Posted by phetaroi View Post
I talked for quite a while with a real estate broker a couple of years ago when I was selling my house and we were trying to determine the right sales price. She cautioned me about ever deciding to buy "short sales" and foreclosed homes because she said you can get caught up in months and months of glitches. I'm not sure how true that is. Any thoughts?
With short sales, long delays seem to be normal, probably because they still have someone on the hook for the mortgage, and because with lots of houses with mortgages sold to securitized pools, unravelling the securitization chain enough to get someone to make a legally binding decision on an offer can take months. It's even worse now with the robo-signer/MERS fiasco unravelling.

REO (bank-owned/foreclosed) houses tend to be less encumbered by those complications since they've already gone through the foreclosure process. I bought a foreclosure from a bank in an all-cash sale, and we closed in less than two weeks from acceptance of my offer (it took five days from offer to acceptance).

A buyer's broker experienced in these types of sales is helpful. I do find that a large number of traditional realtors tend to steer people away from these deals, either because they're trying to prop up prices (and indirectly commissions) or because they aren't among those that understand how to deal with a bank in a short sale or REO.

All that said it can definitely be worth the hassle...I paid six figures less than what the previous buyer paid less than two years earlier.
Reply With Quote Quick reply to this message
 
Old 11-14-2010, 09:35 AM
 
Location: Avondale, AZ
1,219 posts, read 4,383,857 times
Reputation: 929
We bought our home from a bank back in 2004 when repo's were very rare. Our offer was 5% less than asking price and was accepted in a day and closed in 3 weeks.
One of our neighbors bought a short sale last year with an offer well over asking and still had to wait 6 months. We watched another home, a repo'ed 'fixer', sell for about 10k over listing.
I guess the banks nowadays are holding out for the best offer, not just the first.
Like other posters said, find a good realtor that knows the current marketplace.
Reply With Quote Quick reply to this message
 
Old 11-14-2010, 11:06 AM
 
Location: Just south of Denver since 1989
11,272 posts, read 30,437,754 times
Reputation: 7665
I am a Realtor, a Colorado licensed Real Estate Broker, and I specialize in "distressed properties" [full disclosure.]

Short Sales are when the property's fair market value is less than the amount owed to the lender(s) AND the seller has no resources to bing the shortage to closing.

Some short sales take a year or more. Some take a few months. A lot of timing has to do with the type of loan, whether the offer is FMV, and the type of hardship, and even the level of experience of the seller's point person working the transaction with the lender. Often this is the listing broker.

Foreclosed homes are owned by the bank. These are called REO's (Real Estate Owned by the bank.) Sometimes these are better deals because the lender does not know the upkeep/maintenance records - there is always something. A lot of the REO's have extensive addendums and restrictive timelines that buyers and their lenders have a hard time meeting.

A short sale is sold by the owner, who is usually present and can tell you the current condition and history of its inclusions.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Colorado
Similar Threads
View detailed profiles of:
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top