Why have there been not many new listings in Granite Bay?

[NinaN]

Originally Posted by moonsky

Are the REO listings accessible? Is there anyway I can find out about them before they hit the market?

Yes, find a friend at a bank or asset management company that holds REO listings! Or find a real estate agent that gets these listings, they usually have a "coming soon" list. Really, once they are released for sale, they list them on the MLS listings and consider the offers as they come in. Not to say there haven't been any unethical dealings around these, but I wouldn't endorse that.

One thing that really frustrates me, is the mortgage backers like Fannie Mae and Freddie Mac that put the "first look" initiative out there. They say that for the first 15 days, they will only consider owner occupied offers. Giving a chance for the real people with lower budgets to get the house before the investors swoop in. The problem with that is they always list above market price for the first month. By the time the price is dropped to market value, home buyers are competing with investors. The banks almost always take the cash offer over the loan offer, even if it's pre-approved. I have a couple clients in the under $130K range. There are houses out there, but their full-priced offers have yet to be accepted.

As far as flooding the market with foreclosures, I don't think it will happen (just my opinion). The banks learned a really expensive lesson a few years back when they did that, and the are now on more of a one in one out method. Not to say they won't foreclose because they will. But now they are holding assets and trickling them out to maintain price.

[AllansHomes]

Right Nina,

There will be no flooding. The banks release REOs painfully slow. Although there is an increase after the holidays.

You may be able to get a heads up from an REO agent about coming soon properties but you will only know about the ones that THAT particular agent gets. There isn't a way to get a total list of REOs coming soon. That would be nice.

Your best bet is to be dilegent about checking new listings. Be organized and ready to make an offer on the RIGHT house before anyone else.

Get a real estate agent to send you all the latest listings.

Also, pre-approved short sales are more common these days. They close as fast as an REO, are usually in better shape than REOs and are often priced as low as REOs.

Allan Sanchez

[DMenscha]

Originally Posted by NinaN

The Trustee sale happens after the foreclosure and before the MLS listing.

The Trustee's sale IS the foreclosure!

The bank is required to publish a notice of a trustees sale (I think 30 days before foreclosure) to give the homeowners one final chance to bring their mortgage up to date before evicting them and selling the house at auction.

It's 90 days from publication until the sale date.

First, the Trustee puts the home to auction at the county.

It is not a requirement that the trustee's sale occur at the county, but most of the time it is. It can be held in any public location.

If the auction price doesn't meet a minimum amount set by the bank, the bank will list if for sale as an REO (real estate owned). Auctions can be tricky and are probably not advised unless you are an experienced investor. Call the county and see when the next auction is held, then go watch it in process. This is not like buying a house through the normal process. You don't get the inspection period, and you have to have cash or quick financing available. A lot of flippers buy this way, fix, and sell at a profit.

Pretty close to accurate. BUT, the COUNTY has nothing to do with foreclosures, nor do they keep a calendar of when the trustee's sales are.

You cannot get FHA financing for a flip within 90-days of the first purchase, so there is usually substantial improvement that make the 90-day holding period worth it for the investor.

There are exceptions to this rule.

After the auction, if the house doesn't sell, it might be some time before the house is listed for sale as the banks are holding inventory until their other REOs sell so they don't flood the market and depress prices further. There are MANY properties owned by banks that are not yet for sale.

Mostly the reason the time period is as it is (6 to 8 weeks after the trustee's sale) is because the bank now has to perform a few tasks before they are prepared to bring it to market.

[DMenscha]

Originally Posted by moonsky

Are the REO listings accessible? Is there anyway I can find out about them before they hit the market?

Before banks bring a property to market they usually assign 2 different real estate brokers to provide them with a Broker's Price Opinion (BPO). Those brokers will be aware that the property is coming to market, and any diligent broker will read all of the trustee sale publications and know what is coming to market, just not exactly when.