Thank you one and all for your courteous repsonses. Your professional knowledge of this area is impressive, and I will defintely keep your contact information at hand as I proceed forward through this process. Thanks again.

Fri Jun 13 2008, 18:53

Hi Homey: When I started looking to buy foreclosures I found which bank owned the house and I tried to contact them directly hoping that they might cut a better deal knowing that they would save the 5% listing fee. Butr when I tried to put that in practice I found that no bank foreclosure department would talk to me; in fact, they specifically said they would not respond to phone calls, emails, letters, etc and they would only work with the listing agency. Considering the thousands and thousands of foreclosed homes, I can now see why the banks work that way. You will wind up working with an agent if your are looking for foreclosures because the seller will only communicate with a listing agency. Saying that, I strongly suggest that you deal with the agency that lists most of the foreclosures in the area you are searching. Then I would retain an agent in that office that specializes in foreclosures as short sales and foreclosures are unique transactions. The most important factor is that the listing agency will get any changes, giveups, etc first; the foreclosure agent in that office then will have the information before anyone else and can notify you immediately. This has worked for me. I started without knowing any of this and kept coming in second place on the attractive listings -- then I started working smart. Good Luck

Sat May 10 2008, 20:06

Homey,

These agents have great comments for your questions. I would like to add one more thought. I think so many people have a big misconception about foreclosed properties. It is just my opinion. But just to educate you a little further. Most banks or mortgage lenders hire management companies to handle their properties that are in foreclosure. These properties management companies do thier homework on these properties. They hire local REALTORS to do CMA's (Comparative Market Analysis) or BPO's (Broker's Price Opinions). They generally hire local vendors to conduct service like clean up and lawn care. Another disadvantage is that most don't allow for many concessions at all. You really have to have funds to go into closing with and you generally have to take the property in "AS IS" condition without a home repair allowance. As a first time home buyer you should ask a few agents to do a buyer's counseling session with you. This is generally a free session and it will educate you on the different types of relationships/agency that are available to you. This will also be a time when each step of the process is explained to you and will give you the opportunity to ask questions. This will give you the opportunity to learn more about the agents knowledge and professionalism as well. After all you want to be confident about your investment.

Real estate laws are different in every state. If you have any questions don't hesitate to contact an agent in your area. Ask your friends, family and coworkers if there is an agent they might recommend. Good Luck!

Michelle L. Corey

Sat May 10 2008, 20:00

Well Homey,
A good agent can save you a bundle. Yes you can and should hire a home inspector to know the condition of the house however a seasoned agent can point out some suspected serious defects(asbestos, mold,knob and tube wiring, typical high radon areas, poor septics...) before you are under contract and committed to spend hundreds or over $1K on inspections. They can show you homes in the mls that are not foreclosures as well. They can educate you about the schools, neighborhoods and so much more it is difficult to state all they do. A good agent is your advocate, negotiator and confidant.
Remember that often the foreclosures are bank owned because the seller owed more than the house was worth and walked from it. Often foreclosures are in bad condition (look for the emphasis on "as is")
As a first time home buyer I wouldnt go this route unless you are also a contractor, not in any rush and willing to do your homework.

Sat May 10 2008, 19:45

An agent will help you to determine what the true market value is and what to offer. If you are a first time buyer you should know that there are certain risks with purchasing a foreclosure property. (You need to have 20% down payment up front when you make the offer when buying at a sheriff's sale). Often foreclosures are listed the same as any other home for sale- in the multiple listing system but you can tell the home is a foreclosure because the notes will say "bank owned" and under the owner's name you will see the name of a bank. Would you like to give me a call? I would be happy to discuss with you and answer any questions you have!
(908) 377-7942.

Sat May 10 2008, 12:21