Advantages of a foreclosure specialist?

[t36tran]

I am currently a patient renter waiting to buy my first place. Will not start to seriously look until around this time next year, and will not buy unless the #s make sense. Foreclosures seem to be the most aggressively priced and I am almost certain my first purchase will be an REO. So what kind of expertise would a “foreclosure specialist” bring to the table that would make them better than using a discount broker like Buyside? Even though I will be a 1st time buyer, I have taken 7 real estate classes to educate myself and have a 1st time buyer’s loan program already in mind, so I feel relatively confident about not having to have my hand held through the buying process. Also, a question for the realtors on this forum. Of the REOs that have sold recently, what would you say the difference in percentage is between list and sales price?

[Bugs]

First time buyers and foreclosure properties are really not a good combination.

With that said, what happens during a bust market is that eventually the foreclosure properties add up and basically drive the market. If 30+% of all sales are liquidations they tend to drive the pricing for most of the remaining 70% of the properties that do sell.

That means that if you stick around long enough you’ll get the benefits (low price) of a liquidation sale without having to deal with a lot of unforseeable problems that those properties sometimes have.

[Bugs]

First time buyers and foreclosure properties are really not a good combination.

With that said, what happens during a bust market is that eventually the foreclosure properties add up and basically drive the market. If 30+% of all sales are liquidations they tend to drive the pricing for most of the remaining 70% of the properties that do sell.

That means that if you stick around long enough you’ll get the benefits (low price) of a liquidation sale without having to deal with a lot of unforseeable problems that those properties sometimes have.

[Bugs]

First time buyers and foreclosure properties are really not a good combination.

With that said, what happens during a bust market is that eventually the foreclosure properties add up and basically drive the market. If 30+% of all sales are liquidations they tend to drive the pricing for most of the remaining 70% of the properties that do sell.

That means that if you stick around long enough you’ll get the benefits (low price) of a liquidation sale without having to deal with a lot of unforseeable problems that those properties sometimes have.

[Bugs]

First time buyers and foreclosure properties are really not a good combination.

With that said, what happens during a bust market is that eventually the foreclosure properties add up and basically drive the market. If 30+% of all sales are liquidations they tend to drive the pricing for most of the remaining 70% of the properties that do sell.

That means that if you stick around long enough you’ll get the benefits (low price) of a liquidation sale without having to deal with a lot of unforseeable problems that those properties sometimes have.

[Bugs]

First time buyers and foreclosure properties are really not a good combination.

With that said, what happens during a bust market is that eventually the foreclosure properties add up and basically drive the market. If 30+% of all sales are liquidations they tend to drive the pricing for most of the remaining 70% of the properties that do sell.

That means that if you stick around long enough you’ll get the benefits (low price) of a liquidation sale without having to deal with a lot of unforseeable problems that those properties sometimes have.

[XBoxBoy]

Are traditional realtors adverse to showing foreclosed properties (REO’s) to buyers? I’ve heard that REO’s typically only pay very low commissions, so many realtors won’t take their clients to them. Is there any truth to this? Are there agents that specialize in taking clients to foreclosures and help client with buying foreclosures?

XBoxBoy

[SD Realtor]

xbox –

Not at all (at least IMO). Commissions on REO properties (at least from my experience) are very competitive. Short sales are a little dicey because the lender approves a lump sum.

For instance, on a short sale (on the listing side) when you do get an offer, you send the lender everything, the listing agreement the contract, every single thing about the home, (this is on top of the ton of docs that the seller needs to deliver) and the lender will then make an analysis. The lender comes back with a number in terms of what they will accept. So lets say you have a seller with two loans, 500k and 100k and an offer of 420. Say the listing agent has a contract for 2% and the coop commission advertised is 2%. Now the lender takes all this into account along with an estmated HUD that you the listing agent send.

So the lender comes back and says okay we will accept x$ for the first, and x$ for the second (loans that is). Now the short sale asset manager will build in the commissions and estimated closing costs as well. So lets say out of the example above the lender comes back with a response that says we will accept 395k for the first, 1k for the second. Thus there is essentially 24k left over to be used for commissions, other closing costs etc… If it was short, then the agents need to work out a split somehow.

REO properties are sticky for lack of disclosure purposes and liability releases more then anything else. You will be informed that the lender is basically released from all liability because they have no clue about the home. It is not much different then buying a home from a trustee or probate sale. You need to be extra diligent with respect to your own inspections/diligence etc…Also you WILL be presented with lots of liability release docs that are well outside the scope of a normal resale transaction.

Once more this is all just my opinion. Yet I see plenty of REO with competitive commissions.

SD Realtor

[(former)FormerSanDiegan]

First time buyers and foreclosure properties are really not a good combination.

I have to agree. But, the good news is that when there are lots of foreclosures on the market, others have to compete.

[(former)FormerSanDiegan]

First time buyers and foreclosure properties are really not a good combination.

I have to agree. But, the good news is that when there are lots of foreclosures on the market, others have to compete.

[(former)FormerSanDiegan]

First time buyers and foreclosure properties are really not a good combination.

I have to agree. But, the good news is that when there are lots of foreclosures on the market, others have to compete.

[(former)FormerSanDiegan]

First time buyers and foreclosure properties are really not a good combination.

I have to agree. But, the good news is that when there are lots of foreclosures on the market, others have to compete.

[(former)FormerSanDiegan]

First time buyers and foreclosure properties are really not a good combination.

I have to agree. But, the good news is that when there are lots of foreclosures on the market, others have to compete.

[SD Realtor]

xbox –

Not at all (at least IMO). Commissions on REO properties (at least from my experience) are very competitive. Short sales are a little dicey because the lender approves a lump sum.

For instance, on a short sale (on the listing side) when you do get an offer, you send the lender everything, the listing agreement the contract, every single thing about the home, (this is on top of the ton of docs that the seller needs to deliver) and the lender will then make an analysis. The lender comes back with a number in terms of what they will accept. So lets say you have a seller with two loans, 500k and 100k and an offer of 420. Say the listing agent has a contract for 2% and the coop commission advertised is 2%. Now the lender takes all this into account along with an estmated HUD that you the listing agent send.

So the lender comes back and says okay we will accept x$ for the first, and x$ for the second (loans that is). Now the short sale asset manager will build in the commissions and estimated closing costs as well. So lets say out of the example above the lender comes back with a response that says we will accept 395k for the first, 1k for the second. Thus there is essentially 24k left over to be used for commissions, other closing costs etc… If it was short, then the agents need to work out a split somehow.

REO properties are sticky for lack of disclosure purposes and liability releases more then anything else. You will be informed that the lender is basically released from all liability because they have no clue about the home. It is not much different then buying a home from a trustee or probate sale. You need to be extra diligent with respect to your own inspections/diligence etc…Also you WILL be presented with lots of liability release docs that are well outside the scope of a normal resale transaction.

Once more this is all just my opinion. Yet I see plenty of REO with competitive commissions.

SD Realtor

[SD Realtor]

xbox –

Not at all (at least IMO). Commissions on REO properties (at least from my experience) are very competitive. Short sales are a little dicey because the lender approves a lump sum.

For instance, on a short sale (on the listing side) when you do get an offer, you send the lender everything, the listing agreement the contract, every single thing about the home, (this is on top of the ton of docs that the seller needs to deliver) and the lender will then make an analysis. The lender comes back with a number in terms of what they will accept. So lets say you have a seller with two loans, 500k and 100k and an offer of 420. Say the listing agent has a contract for 2% and the coop commission advertised is 2%. Now the lender takes all this into account along with an estmated HUD that you the listing agent send.

So the lender comes back and says okay we will accept x$ for the first, and x$ for the second (loans that is). Now the short sale asset manager will build in the commissions and estimated closing costs as well. So lets say out of the example above the lender comes back with a response that says we will accept 395k for the first, 1k for the second. Thus there is essentially 24k left over to be used for commissions, other closing costs etc… If it was short, then the agents need to work out a split somehow.

REO properties are sticky for lack of disclosure purposes and liability releases more then anything else. You will be informed that the lender is basically released from all liability because they have no clue about the home. It is not much different then buying a home from a trustee or probate sale. You need to be extra diligent with respect to your own inspections/diligence etc…Also you WILL be presented with lots of liability release docs that are well outside the scope of a normal resale transaction.

Once more this is all just my opinion. Yet I see plenty of REO with competitive commissions.

SD Realtor

[SD Realtor]

xbox –

Not at all (at least IMO). Commissions on REO properties (at least from my experience) are very competitive. Short sales are a little dicey because the lender approves a lump sum.

For instance, on a short sale (on the listing side) when you do get an offer, you send the lender everything, the listing agreement the contract, every single thing about the home, (this is on top of the ton of docs that the seller needs to deliver) and the lender will then make an analysis. The lender comes back with a number in terms of what they will accept. So lets say you have a seller with two loans, 500k and 100k and an offer of 420. Say the listing agent has a contract for 2% and the coop commission advertised is 2%. Now the lender takes all this into account along with an estmated HUD that you the listing agent send.

So the lender comes back and says okay we will accept x$ for the first, and x$ for the second (loans that is). Now the short sale asset manager will build in the commissions and estimated closing costs as well. So lets say out of the example above the lender comes back with a response that says we will accept 395k for the first, 1k for the second. Thus there is essentially 24k left over to be used for commissions, other closing costs etc… If it was short, then the agents need to work out a split somehow.

REO properties are sticky for lack of disclosure purposes and liability releases more then anything else. You will be informed that the lender is basically released from all liability because they have no clue about the home. It is not much different then buying a home from a trustee or probate sale. You need to be extra diligent with respect to your own inspections/diligence etc…Also you WILL be presented with lots of liability release docs that are well outside the scope of a normal resale transaction.

Once more this is all just my opinion. Yet I see plenty of REO with competitive commissions.

SD Realtor

[SD Realtor]

xbox –

Not at all (at least IMO). Commissions on REO properties (at least from my experience) are very competitive. Short sales are a little dicey because the lender approves a lump sum.

For instance, on a short sale (on the listing side) when you do get an offer, you send the lender everything, the listing agreement the contract, every single thing about the home, (this is on top of the ton of docs that the seller needs to deliver) and the lender will then make an analysis. The lender comes back with a number in terms of what they will accept. So lets say you have a seller with two loans, 500k and 100k and an offer of 420. Say the listing agent has a contract for 2% and the coop commission advertised is 2%. Now the lender takes all this into account along with an estmated HUD that you the listing agent send.

So the lender comes back and says okay we will accept x$ for the first, and x$ for the second (loans that is). Now the short sale asset manager will build in the commissions and estimated closing costs as well. So lets say out of the example above the lender comes back with a response that says we will accept 395k for the first, 1k for the second. Thus there is essentially 24k left over to be used for commissions, other closing costs etc… If it was short, then the agents need to work out a split somehow.

REO properties are sticky for lack of disclosure purposes and liability releases more then anything else. You will be informed that the lender is basically released from all liability because they have no clue about the home. It is not much different then buying a home from a trustee or probate sale. You need to be extra diligent with respect to your own inspections/diligence etc…Also you WILL be presented with lots of liability release docs that are well outside the scope of a normal resale transaction.

Once more this is all just my opinion. Yet I see plenty of REO with competitive commissions.

SD Realtor

[XBoxBoy]

Are traditional realtors adverse to showing foreclosed properties (REO’s) to buyers? I’ve heard that REO’s typically only pay very low commissions, so many realtors won’t take their clients to them. Is there any truth to this? Are there agents that specialize in taking clients to foreclosures and help client with buying foreclosures?

XBoxBoy

[XBoxBoy]

Are traditional realtors adverse to showing foreclosed properties (REO’s) to buyers? I’ve heard that REO’s typically only pay very low commissions, so many realtors won’t take their clients to them. Is there any truth to this? Are there agents that specialize in taking clients to foreclosures and help client with buying foreclosures?

XBoxBoy

[XBoxBoy]

Are traditional realtors adverse to showing foreclosed properties (REO’s) to buyers? I’ve heard that REO’s typically only pay very low commissions, so many realtors won’t take their clients to them. Is there any truth to this? Are there agents that specialize in taking clients to foreclosures and help client with buying foreclosures?

XBoxBoy

[XBoxBoy]

Are traditional realtors adverse to showing foreclosed properties (REO’s) to buyers? I’ve heard that REO’s typically only pay very low commissions, so many realtors won’t take their clients to them. Is there any truth to this? Are there agents that specialize in taking clients to foreclosures and help client with buying foreclosures?

XBoxBoy

[Author]

Posts