Re: How do I submit contracts for Bank Owned Properties?

[nwatson]

I have been trying to research information on how to buy bank owned properties.   Can anyone recommend a book/course, etc. where I can get accurate information and guidelines on how to learn this market?  I need a how to guide, not something trying to sell me more products.  Are the books, seminars listed on this site a good place to start?

Thanks,
Nancy

[campbellsimon]

99.9% of Bank Owned Properties (REOs) are listed with licensed real estate agents and can be found on the MLS system. All offers must be submitted through the listing agent to the bank, just like any other listed property.

Once a property becomes a REO, there is no need to buy a book or take a course. Buying these properties are exactly like buying a traditionally listed home. The offer is submitted; it is either accepted or countered; if accepted then you proceed through the due diligence period and the closing is scheduled. At closing you will receive title insurance and a warranty deed.

Now that you know - go for it!

[DelliaAmor]

While buyers have found few large discounts among bank-owned foreclosures, opportunities for bargain hunters are likely to improve if mortgage defaults continue to increase. Across the country, a staggering number of homeowners are entering the foreclosure process and many are losing their properties to the bank or lender. As the inventory of bank-owned properties grows, lenders nationwide will be more open to negotiate price and other terms. And prospective home buyers and investors are looking to cash in on rising tide of foreclosed homes...

[campbellsimon]

Though it is true that the country isn’t fully recovered from the devastating effects of the housing market collapse and subsequent recession in 2007 and 2008, but we are well on the way – and in many areas, real estate appears to be leading the charge.

Real estate will continue to be a pivotal driver of economic strength in these areas and others throughout the country as people begin taking advantage of rising home prices and still-low mortgage rates. More than two million underwater homeowners are no longer underwater, and thus can now sell their homes without worrying about taking a stiff loss or facing foreclosure.

[housebroken]

Wow, there's no short answer or shortage of resources that might be helpful.  Look to your left.  There are some great books and tapes from proven investors.  I personally recommend finding a mentor and getting a real estate license.  The license, if nothing more, gives you access.  Good negotiating skills and a boat load of money wouldn't hurt, LOL.

On the flip side, no pun intended, find a good contractor to put on your TEAM.  And speaking of team, never hurts to know a good lawyer, CPA, plumber, roofer, line of credit, you get the idea. 

A lot of people want to invest in real estate.  Most think it starts by buying a property.  If your team is ready.  Lets next talk strategy...

Lots of good stuff to the left.
H

[SteveBurgess]

Hi Nwatson, There are lots of people who want to invest in real estate because this is the very good business nowadays. These two secrets to scoring Bank-Owned property: - Get your terms straight and don’t get too excited about lowball listings.