folks,
this is a step-by-step "how i bought a foreclosed home on the water in the neighborhood i wanted to buy in" that i read on the other forum i participate in that i thought might be of value to prime members. (if others have posted to this level of detail, my apologies- not intending to take anything from what you provided.) thinking outloud a bit, i'm wondering if steveny and others who do this sort of thing for a living might share their thoughts. like most of you, my feeling is there's still more downside to come in properties and i'd like to have my process down pat. (phew - so many words!)
here's the poster's thinking and process:
"I looked for a home in my market. The area I was looking in was primarily based on schools system, Travel Distance, and Boating access to Gulf of Mexico. I wanted Water Front and I wanted something that had a track record against Florida's Hurricanes.(permits and repairs etc)
I started the search in the MLS for foreclosure or REO/Short sales. I googled the area I was looking for.
I also searched Realtytrac Realty Trac is a pay for service and I chose to skip them after they required me to pay a fee.
I kept my mind and options opened and was prepared to compromise if required on square footage, size, style, but NOT on Waterfront or schools.
Once I found a group of foreclosured homes, my search was crosschecked against the MLS and sometimes the homes for foreclosure are not on the MLS but they have a MLS number assigned. (dont ask me why I am not an agent but I suspect it has something to do with time on listing). In my case the house I bought was NOT on a current MLS listing but did have an MLS number on it. I got that MLS from doing a blind search on REO / Foreclosures in the area I was looking and a Realtors web sight came up. This gave me an address.
Once I had an address, I searched the county court records for any documents for deed or mortgage against that property. That is where I learned about the history of the property and based on that analysis I was able to determine WHY the home was foreclosed.
Next, I searched the county for permits against that property. This allowed me to determine risk against the property and what if any damage it sustained during the Hurricane.
Next I checked the property against the FDLE listing for Child Molesters.
Next I checked the school systems for FCAT grades and enrollment demographics. (I have a First Grader)
AFTER this was all done, I checked the county record of recent sales to start to figure out the value.
I then checked the county Tax records. This is where I learned that the Bank owned the home.
I then contacted my realtor. My Realtor had NO idea about this listing. I was surprised at this but was told this is not oncommon in todays market. Banks often do not have a listing agent to push the property. So it sits. Additionally a foreclosure works to your advantage because they Bank just wants to get rid of the property.
I had to use a realtor for a few reasons:
1. I am overseas and I had to do all the research on line
2. Due to a foreclosure, it required a little more diligence on inspections and surveys.
3. I needed someone who could take great pictures.
4. The friend of the court opinion was valued on initial inspection.
5. Needed someone to coordinate my inspections and repairs.
We looked at the time of the foreclosure and months on Market.
In my case the home was listed on the MLS last Summer and steadily was reduced in price each month. Usually around the 2nd week of the month. I guess this is the bank trying to cut inventory and reduce risk.
We made an offer to the bank and the offer was rejected by a lower middle manager. We resubmitted the same offer to that persons supervisor and moved our date of closure up 1 week and it was accepted immediately.
The Home comped Considerably over the appraisal. The Appraisal was completed and I have instant Equity in a great home. I need to do some deferred maintenance and work off my inspection discrepancies, but I purchased a great home, within my budget, on the water, and have taken a foreclosure off the market helping the value in my home on the way.
I would be glad to go in to detail if you wish.
Amazing what you can find out on the web with a little time, and technique!
I got a great rate on a 30 year fixed and should be back in the area in March to do my renovations and get all moved it.
I love this country!
One more suggestion. If you know the county you're going to buy in, go to the County Property Appraisers web page. You can usually do a GIS search of the area and then click on the area you are interested in. Each site has different map functions but they usually hold the same info.
Look for an area that had a high turnover rate in 2006-2007. Most county's list their sales info on the sites and you can visually see the properties on a GIS map overlay. I have found the more homes for sale on the market in a concentrated area, generally the higher the number of flippers caught with their pants down. Once you see the property, look at the tax records for that holding. If you see a corporation or a bank, BINGO you probably have a foreclosed property.
Banks really, really, really want to get rid of em!"
from successfully experienced foreclosure buyers, your comments / suggestions?
this is a step-by-step "how i bought a foreclosed home on the water in the neighborhood i wanted to buy in" that i read on the other forum i participate in that i thought might be of value to prime members. (if others have posted to this level of detail, my apologies- not intending to take anything from what you provided.) thinking outloud a bit, i'm wondering if steveny and others who do this sort of thing for a living might share their thoughts. like most of you, my feeling is there's still more downside to come in properties and i'd like to have my process down pat. (phew - so many words!)
here's the poster's thinking and process:
"I looked for a home in my market. The area I was looking in was primarily based on schools system, Travel Distance, and Boating access to Gulf of Mexico. I wanted Water Front and I wanted something that had a track record against Florida's Hurricanes.(permits and repairs etc)
I started the search in the MLS for foreclosure or REO/Short sales. I googled the area I was looking for.
I also searched Realtytrac Realty Trac is a pay for service and I chose to skip them after they required me to pay a fee.
I kept my mind and options opened and was prepared to compromise if required on square footage, size, style, but NOT on Waterfront or schools.
Once I found a group of foreclosured homes, my search was crosschecked against the MLS and sometimes the homes for foreclosure are not on the MLS but they have a MLS number assigned. (dont ask me why I am not an agent but I suspect it has something to do with time on listing). In my case the house I bought was NOT on a current MLS listing but did have an MLS number on it. I got that MLS from doing a blind search on REO / Foreclosures in the area I was looking and a Realtors web sight came up. This gave me an address.
Once I had an address, I searched the county court records for any documents for deed or mortgage against that property. That is where I learned about the history of the property and based on that analysis I was able to determine WHY the home was foreclosed.
Next, I searched the county for permits against that property. This allowed me to determine risk against the property and what if any damage it sustained during the Hurricane.
Next I checked the property against the FDLE listing for Child Molesters.
Next I checked the school systems for FCAT grades and enrollment demographics. (I have a First Grader)
AFTER this was all done, I checked the county record of recent sales to start to figure out the value.
I then checked the county Tax records. This is where I learned that the Bank owned the home.
I then contacted my realtor. My Realtor had NO idea about this listing. I was surprised at this but was told this is not oncommon in todays market. Banks often do not have a listing agent to push the property. So it sits. Additionally a foreclosure works to your advantage because they Bank just wants to get rid of the property.
I had to use a realtor for a few reasons:
1. I am overseas and I had to do all the research on line
2. Due to a foreclosure, it required a little more diligence on inspections and surveys.
3. I needed someone who could take great pictures.
4. The friend of the court opinion was valued on initial inspection.
5. Needed someone to coordinate my inspections and repairs.
We looked at the time of the foreclosure and months on Market.
In my case the home was listed on the MLS last Summer and steadily was reduced in price each month. Usually around the 2nd week of the month. I guess this is the bank trying to cut inventory and reduce risk.
We made an offer to the bank and the offer was rejected by a lower middle manager. We resubmitted the same offer to that persons supervisor and moved our date of closure up 1 week and it was accepted immediately.
The Home comped Considerably over the appraisal. The Appraisal was completed and I have instant Equity in a great home. I need to do some deferred maintenance and work off my inspection discrepancies, but I purchased a great home, within my budget, on the water, and have taken a foreclosure off the market helping the value in my home on the way.
I would be glad to go in to detail if you wish.
Amazing what you can find out on the web with a little time, and technique!
I got a great rate on a 30 year fixed and should be back in the area in March to do my renovations and get all moved it.
I love this country!
One more suggestion. If you know the county you're going to buy in, go to the County Property Appraisers web page. You can usually do a GIS search of the area and then click on the area you are interested in. Each site has different map functions but they usually hold the same info.
Look for an area that had a high turnover rate in 2006-2007. Most county's list their sales info on the sites and you can visually see the properties on a GIS map overlay. I have found the more homes for sale on the market in a concentrated area, generally the higher the number of flippers caught with their pants down. Once you see the property, look at the tax records for that holding. If you see a corporation or a bank, BINGO you probably have a foreclosed property.
Banks really, really, really want to get rid of em!"
from successfully experienced foreclosure buyers, your comments / suggestions?
