how to buy a foreclosure

Question

What is the best way to go about buying foreclosed properties?

Bryan L. · Answer

Most of your local banks are going to also list them with a Realtor.  You could probably just call the bank and ask if they have any repo houses for sale.  You will probably get routed to the right person if they do.  The times that I have seen this work out the best with these local banks that have repos that are not on the MLS - usually the buyer has found the house because he lived near it or found it by doing driving-for-dollars.  In other words, they found the house first, then found out which bank owned it, and then went to the bank.

Troy Kingsbury · Answer

Thanks, Bryan!  If I choose to start with a local bank, just go in and ask for the bank General Manager?

Bryan L. · Answer

Most properties that have already gone through the foreclosure process, and are now owned by the banks - most of these are usually listed with a Realtor for sale.  I've bought several of them.  The best way is to get with a Realtor (buyer's agent) or become one yourself, and write an offer.  The stronger the offer the better.  Cash is best, with proof of funds, and a good earnest money deposit.  You are more likely to get one bought at a good price if you also have NO contingencies in the offer.  They often (but not always) will accept financed offers, but pre-approval with the offer is usually required.

Alternatively, some of the small/local banks will occasionally sell some of their repos themselves without listing them with a Realtor.  Still, be ready to show proof of funds or loan pre-approval etc.