Foreclosures, oh, foreclosures. The media makes it sound so simple and abounding with bargains. Here is what I know.
Short Sales are where the deals are. A short sale happens when someone realizes he/she is in trouble, lists as normally with a Realtor, and then the agent and the seller work together to get the bank to take less than is owed on the property. Banks will often take 20% less than is owed, so you can get a real deal that way. The process is lengthy and arduous, and not for every buyer, but it can result in a great deal. There is more you would need to know, but that is it in a nutshell. These listings will be in the MLS along any normal listing meeting your criteria, but they should say in the comments "subject to bank approval" or "short sale."
When Foreclosure procedures actually begin, a listing should note that it is in the foreclosure process. Buying one of these can be tricky as it can be foreclosed at any time, negating any offers or contracts on the property.
Once the property is actually foreclosed upon, it goes to the courthouse steps for auction. There may be some deals to be had there, but many don´t sell there. I am in no way involved in that process. You can find properties going to auction on www.buncombecounty.org
So then, the properties that don´t sell at auction go to the bank´s REO (real estate owned) department. The bank then lists it with a real estate agent, and those listings will show up in MLS along with the regular listings. These don´t end always as great deals, though they can be, because by this time the bank has in the property what was owed plus 30 - 50k in expenses involved in the foreclosure process.
Yes, I do work these properties if they are listed in the MLS. I do not list bank-owned properties (that is really an area of specialty), but some of my associates do so exclusively. I do list short-sales and understand that process.
Email Me if you want to discuss distressed properties.
828-216-2300
