Thread: Don't Buy Any Forclosed Homes Yet

Honestly, I don't know what you're talking about.
After having sold dozens of foreclosure representing the buyers, what you said never happened.
80% of my buyers were ready to close in 10 days or less while the bank asked for a full 30 days to close. They couldn't back out without to be sued.
When I show a foreclosure, I always take pictures of the property and never forget to put a " buying the property as seen on the xx/xx/09, attaching photos".
If the seller's agent is doing whatever he can for the buyer to back out, he's not going to get any earnest money.

In fact, my guess is you had a very bad experience. Why not shop around for a good foreclosure buyer's agent. It's free for you and you will not get a better deal if you think that "less agent on the way, lower the purchase price..."

Onoftehcrowd I have no idea what you are talking about either. 90% of my sales since mid 2007 have been foreclosures. Here in the Twin Cities over the last four months 60%+ of the transactions have been lender mediated as well. I have never experienced what you are talking about nor have any of my peers. Albiet, we don't have termites here in MN. I would recomend you find a good buyers agent to help you through an REO transaction.

Originally Posted by oneofthecrowd

Remember, you are dealing with the banks who are the main cause for the economy problems today.

This pretty much sums it all up. When you are dealing with a bunch of numskulls you should expect to see the unexpected.

It would appear that oneofthecrowd met one of the agents that give all agents a bad name. The risk is too great for the small reward for an agent to do some of the things you are talking about.

Did you have an agent representing you? What does your agent say?

Originally Posted by oneofthecrowd

At least not until you find out all the foolishness the seller (bank) and his agent (especially his agent) put you through before you get the keys. Don't believe it when you hear that the banks want to get rid of their forclosed properties as quickly as they can. They do indeed but, only if the $price$ is right. They really get away with all kinds of mischief and harassment.

First, the seller's agent will do all he can to get you, the buyer, to back out so he can keep your earnest money. If this doesn't work, then he will delay, delay, delay... until he gets an offer of cash from an investor and then they wait till you fund the loan with down payment and closing costs and then deliberately delay the process hoping you will back out so the bank can keep his own promised closing costs and escrow fees and prevent you from getting yours and if you do get yours returned, it won't be but for an extremely long time. Their main purpose is to delay and delay until they realize they can't get a better offer than yours and only after they have exhausted all their efforts.

Also, during this delay, they (the bank's contractors) will remove things from your future home. Have you ever seen a bank owned home that wasn't missing something like an ac unit, doors, roofing material, etc? They are actually reinstalling these things at one of their other properties. Often times they will have part of the structure removed saying it was damaged by termites. So, never never agree in your contract to allow the seller to pay for the termite inspection because they use this as a free pass to disassemble your home. The banks also have their own so-called "contractors" who are really only day laborers hired off the street at the neighborhood home improvement centers. The bank's agent says he paid thousands to do termite repairs, etc., but actually only cost him a few bucks. Remember, you are dealing with the banks who are the main cause for the economy problems today. They're experts at knowing how to cheat people. Always get contingencies when dealing with banks if you and your agent can get them to agree to them, or, be prepared for a long ride to ownership.

The exact same thing happen to my buyer. And to make it worse he was a 1st time home buyer, so he got very frustrated with the deal and thinks that how all RE deals get done.

I wanted to add that the listing agent has an incentive to not sell because if he finds a buyer himself then he can double dip and make 5% instead of 2.5%. Greedy bastards!

Originally Posted by Vegasloanlady

The exact same thing happen to my buyer. And to make it worse he was a 1st time home buyer, so he got very frustrated with the deal and thinks that how all RE deals get done.

I wanted to add that the listing agent has an incentive to not sell because if he finds a buyer himself then he can double dip and make 5% instead of 2.5%. Greedy bastards!

Business must be slow seeing as you have only done one foreclosure deal in las vegas where the only deals getting done are foreclosures.

Oh, and the listing agent does have an incentive to sell, because if they do not move enough properties they will lose the whole account and end up with nothing.

My experience is from a few years ago when I was still selling real estate. The one agent in our Remax office who did REO show me to work in jeans and t-shirt everyday. He always had at least 10 REO listings. We became friends over time and that's how I got to know the inside of working with REOs. This Friend of mine sold 90% of his own listings, and often comment that he doesn't even work with buyer agent.

Now my experience is limited to him and some of his inner REO circle. As for me, I never sold any REOs for banks.

Now, fast forward a few years and we're in a buyer's market,so there is a incentive for REO agents to move faster than before when having a listing was worth it's weight in gold.

The prime reason for the real estate business would be to get the property at a lower price but you can improve it so that you can sell it at a higher price covering all the improvement expenses plus the profit. With the situation of the real estate market the presence of foreclosures are getting a bigger impact to many people as they can get the properties that most likely have a big chance of giving them high profit. The real estate market in any places continues to have more events of foreclosure that there are more properties that are now under the control of many investors. thus relying on how to manage a full details in your purchasing...
Remember if one does not keep a keen eye out of it.. of course one can be fooled.. naturally.....

Here in NY the banks and realtors are arrogant. I get more done out of state than I do here. Always use contingencies when working with banks.
I've seen them slip things in on people that did not use contingencies. If the banks don't like it; well too bad.