Lesson
Four
The Foreclosure Property Inventory
A wide selection of
properties are available from property owners in default, lenders and
government agencies. They include every conceivable residential type; from
single-family homes, condominiums, and town houses, to multifamily buildings
and apartment communities. They are located in almost every area and a
variety of neighborhoods throughout the country. However, they don't often
have signs on them telling investors what they are.
Property listings for most VA, HUD, Fannie Mae, &
Freddie Mac foreclosed houses are available through government lists and now
often on the Internet. The properties are available for sale to the general
public and an effort is made to market them to both homebuyers and
investors, to veterans and non-veterans. However, when the broker's for sale
sign goes up they will look like every other listing and you will only know
that they may be special with research or a relationship with the broker.
VA-Acquired Properties
Available For Sale
- The
Veterans Administration sells single to four family properties that are
acquired as the result of foreclosures on VA guaranteed loans. They are
offered through the facilities of
46 regionalVA offices. Property listings for most offices
are available on the Internet or by direct mail. Regional offices whose
Internet sites are not yet functional still publish sales listings in
local newspapers.
The properties are available made available to
investors and the general public
through local real estate brokers, and are sold to either veterans or
nonveterans.
Real estate brokers assist prospective purchasers
in viewing and offering to purchase the properties. Participating
brokers receive instructional material regarding the sales program and
are familiar with VA sales procedures. The VA pays the sales commission.
The VA offers owner financing for most of its
foreclosed properties. Sometimes financing is offered at $0 down.
To find the on-line VA list for your area,
CLICK HERE then click the link to your state office.
As you have learned, however, those investors who
have a relationship with VA appraisers and brokers will have early
knowledge of the really good deals. By the time you see a published list
with the VA price there will likely be an offer already presented.
HUD
When someone with a HUD
insured mortgage can't meet their payments, the lender forecloses on the
home; HUD pays the lender what is owed and HUD takes ownership of the home.
HUD then sells it at market value as quickly as possible.
HUD homes are sold "as-is", without warranty.
That means that HUD will not pay to correct any problems. But even if a HUD
home needs fixing up - and not all of them do - it can be a real bargain.
For example, HUD's asking price on the home will reflect the fact that the
buyer will have to invest money to make improvements. HUD might offer
special incentives such as an allowance to upgrade the property, a moving
expense allowance, or a bonus for closing the sale early.
In most sales the buyer can request HUD to pay
all or a portion of the financing and closing costs. Your real estate broker
will have details.
HUD homes normally sell in an "offer
period". At the end of the offer period all offers are opened and basically,
the highest bid is accepted. If the home isn't sold in the initial offer
period, you can submit a bid. Bids can be submitted any day of the week,
including weekends and holidays. The will be opened the next business day.
If your bid is acceptable to HUD, your real estate broker will be notified
(usually within 48 hours).
Government Agencies with
homes for sale:
(click on the agency
name to go to their home page and on the "hms" link to go to their listing
of properties for sale)
Dept of
Veteran Affairs |
hms
Fannie Mae |
hms
Federal Deposit Ins Corp |
hms
Freddie Mac |
hms
GSA Property Disposal
U.S.
Treasury |
hms
Small
Business Administration |
hms
US Army Corps of Engineers |
hms
Customs |
hms
U.S. Marshalls Service |
hms
Dept of Agriculture (go
to their search button and search "homes for sale")
HUD also has multifamily
foreclosures for sale.
CLICK HERE for a list.
Lender REOs
As you begin your
research for foreclosure properties you are likely to become overwhelmed by
the many
different reporting, listing or information services of REOs. Many of them
will make claims to
have everything you need to find foreclosed properties, whether bank owned
or government owned, pre-foreclosure or post-foreclosure, statewide,
nationwide or local. Unfortunately, much of it will be
misinformation, lists of already sold properties, and a fair amount of BS and hype.
Understanding and accessing public
data and lists
The original civil
judgment information services grew out of actual courthouse
research that agents did for credit bureaus, attorneys and title search companies. The information
had to be
accurate, reliable and up to date. Because the demand for such information
has expanded to include many diverse interests, including landlords and real
estate investors, many firms have dramatically expanded their
services and now make all kinds of public record data available to all types
of organizations and even directly to consumers.
There are several such companies that deliver
accurate information to their customers, whether they are home buyers or
investors. Some of them specialize in foreclosures, understanding the type
of data their investors need and try to provide it in a timely manner.
Local government is getting it up
Today many counties across America are making their real property and public record
information available on-line. That information may include about everything
from criminal records to overdue library books and civil judgments,
evictions and foreclosures. As they become available, we try to establish a
link from your RHOL State Pages. Visit your state page often and watch for
updates.
 
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