Dan Bradstreet RE/MAX - Expert Realtor

Bank owned homes
These are homes that have gone through the home foreclosure process voluntarily or un-voluntarily. Generally speaking, the lien holder (bank) has purchased the home at the court house steps for less than the money owed (payoff), thus making the property a "Bank owned property". Most banks have a real estate agent or a agent that markets these properties for a fee. Thus, most are listed for sale in your local multiple listing service.
In all cases that I am familiar with, the bank will require a letter from your bank or lender giving the "ok" for the purchase of a properties for the amount owed after your down payment.
You can ask the bank "seller" to pay for closing costs and or for the cost of repairs etc. Usually a real-estate agent that is experienced in the acquisition of bank owned properties can best represent you the buyer.

Purchase Pre-Foreclosure Homes

What is a Pre-foreclosure home?
Before the lien holder or bank actually completes the foreclosure default process "before the home or property is sold at a court house foreclo0sure sale"

Is a short sale a pre foreclosure property?
All short sales are pre foreclosure homes that generally can't be sold for enough money to pay off the liens against them.

What options do I have when purchasing a pre foreclosure property?
1. Cash purchase. All cash at closing.
2. Loan from a lending institution or bank
a) V.A. loan Must be a veteran to qualify "0" down.
b) FHA. Must be owner occupied you must live there "3.5%" down.
c) Conventional loan. Owner occupied "3%' or more down
d) Non-owner occupied. or investment loan,Usually "20%" down.

Purchase Process
1. Secure financing. you must at least have a letter of pre-approval from your lender.
2. List purchase scenarios that will work for you. price,location,needs
3. Have an experienced real estate agent help you identify properties. This is where Dan Bradstreet can help.
4. Make offers that work for you, don't let your agent pressure you into something that does not work for you. You agent should be working in your best interests.

Guidelines
Use a Promissory Note for earnest money which should be redeemable upon an inspection acceptable to you the buyer.
Ask the sellers to pay your closing costs of up to 3% This could help you purchase for less money up front if cash is a problem.

How can You find the best pre-foreclosure homes?
The best home purchases that I have come across were found by an aggressive, experienced real estate agent, that was familiar with the process and could identify those properties that can close for a significant amount below the listed sale price. Again I can help find distressed properties
Seattle WA Property Vancouver WA Homes Portland Oregon Homes

You have probably heard that now is a terrible time to sell but, should you sell now?
If you have any intention of trading up, "selling your home and purchasing a larger or more desirable home" this is a great time to sell for the value added is going to cost you much less now than in the future when home values and prices begin to increase.

Home Search

Question: Should you sell your own home "sell by owner" and save all that easy money you would pay a real estate agent that drives a car you can only wish you could afford.

Answer: There are fewer "BY OWNER" home sales now than 10 20 years ago, and less than half of those going it alone would not go through the selling process again without a real estate agent.

Bank Owned Homes

Reduced numbers of new home construction reflects the dismal state of the housing market.
Not so! At this time the inventory of homes for sale is full with pre-existing and new built homes.
Builders have sharply reduced new home starts. Simply put, fewer start ups help to allow inventories
of homes to lower and prices to stabilize. There are a lot of opportunities to buy more home for the
dollar than anytime in the last three years.