Looking for a “Foreclosure List?”
Read below to learn more about the
process then simply search below to obtain FREE
Everyone seems to want or at least
learn more about FORECLOSURE’s. With late night
infomercials promising sure fortune’s awaiting who
wouldn’t be? However, we have a more realistic
appraisal of the current situation. Here are some
things to understand when looking at these types of
“Foreclosure” is thrown around by
marketers trying to spur interest in what is
actually a very complex and time consuming real
estate transaction. The term is almost ubiquitously
used to describe homes in some type of distress.
However, there are three basic steps to the process.
Loosely they are:
SALE: A short sale occurs when the
current owner must sell a property that is
worth less than the amount of their loan
securing that property. That means the
current owner must either bring in
additional funds to close escrow OR the
owner and their agent must convince the bank
that selling the property “short” is the
best way to proceed with a sale in this
market, at this time.
Thus, when a house is “short”, a negotiation
usually takes place between the current
owner and their agent and the current lien
holder(s) (bank) before an offer can be
accepted. During that time, the current
owner and agent tries to convince the bank
that it will be in their best interest to
sell the property at a loss RIGHT NOW,
rather than going through the lengthy and
costly process of foreclosing. This entire
process is tedious and difficult for all
parties, from the owner and agent, to the
bank, to you waiting to hear back about your
offer. Patience is paramount at this point.
OF DEFAULT (NOD): If a property cannot
be sold “short” and an owner falls behind in
their payments, then the property is placed
on the “Notice of Default” list (Often
referred to as “Foreclosure Lists Here!!!”).
This means that unless payments are made or
some other resolution is reached, then this
property will be foreclosed upon by the
bank, thus becoming “Real Estate Owned” or
an REO property. It is during this step that
“late night advertisers” proclaim “DEALS ON
THE COURTHOUSE STEPS!!!” Have you been to
one? It doesn’t exactly work like
that…However; the NOD list CAN alert you to
potentially good buys becoming available.
ESTATE OWNED (REO): Once a property has
officially been foreclosed, then it becomes
owned by the bank and is considered an REO.
These properties can become good buys.
However, the process of buying an REO or
foreclosed property is lengthy and can be
more complex than a standard transaction.
Most buyers find the standard 30 day escrow
of a “normal” transaction to be very
stressful. An REO transaction requires more
even more patience and care.
Working with the
proper agent can be the difference between obtaining
the property and successfully completing a smooth
transaction or becoming frustrated. We have worked
hard to come up with a submission package that is
specifically tailored to fulfill what the bank is
looking for when completing these transactions.
you are looking for a “short”, “REO”, or standard
property purchase Kris and Brian Butler have a
proven track record in completing complex
transactions for our clients.