How do I purchase foreclosed homes?

Question

I have found a foreclosed property I'd like to purchase, but I don't know where to start. Also, I believe the property is a bit overprices as listed, how do I build a base to negotiate?

Answer 1

Contact the owner of the property. Usually it is a bank or mortgage company. If the property is "listed" that means to me that a Real Estate Agent has the contract to sell for the owner.
If so, contact the person who listed the property. You can inspect then make an offer in any amount you choose.
If you really want the property and the owner does not accept your offer, hire your own real estate appraiser, pay him a fee and have him give you his best opinion as to the market value. If it is higher than you want to go, don't buy the property.
If you pay more than you want to, I guarantee you that you will get a case of buyer remorse. Then you will spend all of your waking hours trying to figure out how to get out of the deal.

Answer 2

Usually banks use real estate agents to sell the property. If no agent is used, then you have to pull title to see which bank/lender owns it. You then contact the loss mitigation department of the bank and tell them you are interested in purchasing the property. You will then submit a purchase contract and they will either accept, deny or counter you price. You just have to be careful if no agent is involved because you do not know the condition of the property and the local kids might vandalize it while you're negotiating with the bank.

Regards

Answer 3

Usually a real estate agent will have the contract to list and sell the property for the owner who is likely to be a bank or mortgage lending company.

The important thing is to properly assess the real market value and fix up costs of the property before making any decision to buy. If the property is going to auction, don't over bid.

Answer 4

If you are in California, I recommend this website: