I see on several REO listings that its required to make offers through other websites. Does anyone have and experience with makign offers this way? Any success and if so, what did you do that made you successful?
HomePath is Fannie Mae’s on-line auction portal. You must be a licensed real estate agent or equivalent to make an offer through the site. Simple and quick process. In many states, Fannie owns the largest percentage of foreclosures. The info on the site is marginally helpful.
HUBZU is quick and easy. Only negatives I observed are required buyer fees (as high as 4% of purchase price) and not allowing inspection contingency. Info on the site is spotty at best.
HUDHomestore is HUD’s on-line auction portal. You must be a licensed and approved real estate agent to participate in the daily auctions. My personal opinion, depending on the market, is that this is the best real estate on-line auction. Info on the site is very helpful and extensive. 3% to 6% is deducted from offer to pay real estate commissions. Highest net bid wins. A buyer can also ask the seller to pay closing costs.
While both answers are right, I do have a little more input on buying property through the auctions (and there are many).
Homepath and HUDHomestore and very different than Hubzu and other auctions online for REOs.
Yes, to make a bid through Homepath and Homestore you have to have a registered Realtor apply for you.
Usually the first 15 to 20 days are exclusive to owner occupants, and non-profits after that it’s open to investors. You have the Realtor (or agent) submit the offer through the website. Then if there has been numerous bids, the listing broker will contact your agent and ask that you give your highest and best bid by a certain time and date. If you do that and win, the property will be yours after the usual closing.
A few tips for getting the property you want. 1. If at all possible, pay cash. 2. Do not ask or expect Fannie Mae or HUD to pay for anything except the commissions. 3. Keep the inspection period short 4. Still give them time to close (30 to 45 days). 5. Do not give your highest and best price on the first round but definitely do so on the second. 6. Keep everything within the time limits. If you are an hour later than told, you lose.
HUBZU: UGH… that is an online auction… you bid as you go along (like ebay) The listing agent is never to be found and every question you might have goes through a call center. Once you get into a bidding war with others on a property, you can set up automatic bids but understand that even though they set a time for the end of the bid, if there was a bid within 3 minutes of the end of bidding, they tack on an additional 10 minutes or so, which can go on for a very long time. Plus, there are premiums that must be paid and in a bidding frenzy the price of the property can be way over priced compared to it’s real value and that is no deal!.
Other auctions are similar to Hubzu. Many will auction off properties without informing the owners who are still living there. Then you have to evict them, not fun!
I am a Realtor in West Palm Beach after having been an investor out West (NV & AZ) I have been successful with HomePath and HomeStore and have been frustrated with HUBZU time and time again. (even though I have heard of others who have gotten bids accepted with HUBZU).
Not all Agents and Brokers are able to register with HUD and Fannie Mae, nor do they understand the process. So choose your Realtor carefully and make sure they have that understanding of how REOs work.
Many times it may take months for them to accept a bid. (It once took a buyer of mine 4 months to be told the house was his!)
Good Luck, and if you need any help… just contact me (especially if you are in my area!)