How do I find bank owned properties? (short sale, loan)

[CCRESI]

Sure, but some listings are outdated. It's best to get either a listingbook acct or have your realtor send you an updated list. Homes go pending in the matter of days. Zillow and trulia is outdated info as far as listings are concerned.

[justNancy]

Bank owned properties are listed on the same site as every other property, so I'm confused about the inquiry. Do you use an online search? Most real estate agencies have a web site and offer prospective clients access to the MLS. You just enter the criteria such as 3/2 single family or 2/2 condo and the price range, and then select REO/BankOwned, Short Sale, etc.

There are currently a lot of short sales on the market. The only advantage I've seen is that people usually live in them. Not all foreclosures need work, but many of them do. The suggestion about using ListingBook is very good. Also, unless you are contractually committed, there's no reason you can't sign onto any real estate agent's web site and register to get access to the MLS. Some don't even require a name, but most ask for your email. Emails are anonymous, so there shouldn't be any problem.

It's strange that a real estate agent would be opposed to bank owned properties, since they usually close a lot quicker and are easier to show. I'm not in the real estate business, but when a house is vacant, it's much easier to get in right away without an appointment. Just my opinion based on experience. The only negative is the possibility that a foreclosure has been trashed, but sometimes the lender will fix it up before listing it. Other times you'll need to buy appliances, replace the kitchen cabinets and bathroom vanities, flooring, even the toilets and sinks. It just depends on the individual property. Some of them are NNLI (new-never lived in) because a builder went bankrupt, but make sure you check those for Chinese Drywall and mold. The main problem with a short sale is the wait and uncertainly. I understand things have gotten better, but I waited for a very long time for a house I liked a lot only to learn that the listing price wasn't even close.

[Jkgourmet]

Just to update this thread, I did not sign anything with the agent, nor would I ever be likely to. And, after a terrific first meeting / interview, what she showed us told us more about what she wanted to sell rather than what we wanted to buy.

But one of the condos we viewed, we liked. A lot. She insisted the short sale price was probably listed too low. I Asked her to inquire about this listing - especially since it had been on the market gor over 500 days. (not a typo)

in the meantime, I got on my laptop and quickly discovered one other short sale and one traditional sale of very similar units in the same buliding. (the building consisted of six units total - half on the market!). Both those units were 20+% cheaper than the one she showed us. I'm quite sure that if I hadn't found them, I never would have heard about the cheaper units from thus realtor.

IF I were interested in pursuing the unit she showed me, I would try to find another realtor. And that's not like me - I've worked commssion and I honor and respect it. But this realtor did not do their job and I wouldn't trust to get me the best completed deal.

Would anybody say I would be wrong for replacing her?

[Cobalt502]

In a short sale you may feel you have the best realtor in the world but it is the listing agent that is responsible for many of the tasks to insure the deal will get processed exactly as it is required by the banks. We have what we feel is a fantastic agent but the listing agent on the property has made timely mistakes and has lied to all of us. It has become very clear that she is inexperienced in the short sale process! As we move forward, and there has been progress from BOA, we are concerned that she is going to drop the ball...AGAIN!

[CCRESI]

JK I don't blame you!! If she was all about her and not about you, then she has poor customer service and might not have your best interest in mind.
What Condo development are you looking at? If half is on the market, I would wonder what is wrong with the place? Or did everyone else buy during the peak and now letting the properties go?
How is the Hoa doing? If this condo you like a lot is priced 20% higher, does it have more sq ft, updates or more bells and whistles? Are tge other condos short sales, foreclosures? Ask a new Realtor to send you a CMA for the complex, to see what has sold/when/how much.
Good luck to you!!! This market is a crazy one that's for sure

[Big House]

Originally Posted by CCRESI

Big house-NO. You misunderstood what I said. If JK signed with his current Realtor as a buyer's rep, then he should read it to be sure the agent didn't throw a cancellation charge in it. Also, if Realtor 1 showed JK a home but Jk bought it through realtor 2, realtor 1 could go after the commission as probable cause. I have seen this a lot. And sometimes the buyer ends up having to pay Realtor 1 their commission. Just protect yourself and work with one agent that is a good fit.

I have not seen realtor 1 ever succeed, and I would not recommend anyone sign a buyers agreement either. I think that once the agent gets a written agreement like that, they relax and don't work as hard, plus I have worked with some brokers who told me I would get excellent service with them, and I got terrible service. They didn't send me any information close to what I was looking for, and I sent them mls examples and descriptions in detail. I waited months before I switched to another agent who then proceeded to show me a number of homes that fit what I was looking for. Since then (over the past year) I have bought over 10 homes.

I guess I was harsh with you because, some agents here are awesome and offer free - great advice, some are blatantly self serving and more like spammers than good helpful posters. When I first came to the board, I recieved a lot of great help / information / advice - some good some bad, some warnings - all helpfully intended.

Moving from out of state is a difficult process, and having some people that help educate them through the process was very valuable to me. I try to return the aid I recieved.

[kroeran]

Originally Posted by justNancy

It's strange that a real estate agent would be opposed to bank owned properties, since they usually close a lot quicker and are easier to show.

Someone told me that short and bank sales might be subject to reduced agent fees by the bank, thus motivating the agent to redirect signed clients toward full fee listings?

[hiknapster]

Originally Posted by kroeran

Someone told me that short and bank sales might be subject to reduced agent fees by the bank, thus motivating the agent to redirect signed clients toward full fee listings?

Not in Knoxville. By the way, up here the norm is about 2.4 percent going to the buyer's agent, which the agent then brings to the broker and he takes his cut. That's for all listings.

What you probably heard is in regard to listing agents. Sometimes if an agent exclusively gets a bank's REOs the fee may be less than the 6 percent. Builders will often do that, too. It's because of the volume.

But that wouldn't play into your theory.

[CCRESI]

Well here there is no set commission and on short sales the commission might be lowered by the lender, but should be split 50-50.
A lot of agents don't like to work short sales because some find it a waste of time. In the period of waiting for an answer, multiple offers could result and then you are back to square one. The only time I would tell a Buyer that a short sale (excluding bank approved ones) might not be in their best interest is if they have a short period of time to be in the home.
In either case, an agent should show you any property that you qualify to buy. Agents who steer buyers into homes bc of commission or bonuses are not ones you want to work with.
If an agent in this market is refusing to work short sales or foreclosures, then what does he/she sell I wonder?

[kroeran]

Originally Posted by hiknapster

Not in Knoxville. By the way, up here the norm is about 2.4 percent going to the buyer's agent, which the agent then brings to the broker and he takes his cut. That's for all listings.

What you probably heard is in regard to listing agents. Sometimes if an agent exclusively gets a bank's REOs the fee may be less than the 6 percent. Builders will often do that, too. It's because of the volume.

But that wouldn't play into your theory.

Yeah...my strategy was to approach listing agents on short sales and I was shocked at the lack of effort and inaccuracy of the mls listings, ie. No photos and inaccurate information, which I was only aware of because I already had a unit in the neighborhood

Maybe I am paranoid, but I started wondering if choice short sale listings were being deliberately mislisted so that insiders could take them