Value of PreForeclosure -> Auction -> REO data

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Value of PreForeclosure -> Auction -> REO data

Jay Gray
Real Estate Investor · Sacramento, CA · Member since 2010 · 41 posts · 11 votes

I've noticed sites like RealtyTrac, ForeclosureRadar, Foreclosure.com, etc. have a bunch of different data available...

Mostly this can be broken down into the following periods:

1* - Preforeclosure period
2* - Foreclosure period
*Where during these peroids they could also be considered "short sale" periods.
3 - Auction period
4 - Bank owned!

Maybe I'm wrong, but the best deals are going to be had once the property reaches the bank owned state, right?

Assuming you're after REO's how much real value is there in the other information?

How do you use the data personally?

Do you factor in other information, or just wait for it to hit the banks list (public or not) & then attack?

It seems like you would waste a lot of time if you were to start tracking houses much earlier than the failed auction period -- not to mention a lot could change condition wise within short periods of time.

It seems like only the bank lists have the real value?

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Justin S.
Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
16y

Jay

The best value for you is going to be where there is the least competition. That means finding deals before they hit the MLS and finding pre foreclosures before everyone else finds them. You want zero competition when buying and lots of it when selling.

To find out what your market is doing, attend a local REIA and they probably have this broken down for you. In my market, REO's sell cheaper than shorts. But the shorts I buy are cheaper than REO's because I have no competition. Good luck.

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  • Eric M.
    Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
    16y

    Your question is a bit scattered but I'll give it a shot.
    A short sale is possible while the homeowner still owns it. After the auction (or slightly before it) no more short sales.

    Some people find you get better values before it becomes REO, some think after. I personally think the better deals are short sales before auction or REO's that have been on the books a long time. BUt others love the fresh REO's.
    Once it becomes REO, all that foreclosure data is useless for the most part.
    Not sure what you mean, only the bank lists have the real value.
    Real value of what was owed on the property? Who cares. You can bet it is more than the market value.
    Or real market value of the property? Hopefully you as the investor can figure out what the market value is.

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  • Justin S.
    Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
    16y

    Jay

    The best value for you is going to be where there is the least competition. That means finding deals before they hit the MLS and finding pre foreclosures before everyone else finds them. You want zero competition when buying and lots of it when selling.

    To find out what your market is doing, attend a local REIA and they probably have this broken down for you. In my market, REO's sell cheaper than shorts. But the shorts I buy are cheaper than REO's because I have no competition. Good luck.

    1Reply
  • Mark Bradley
    Real Estate Coach · st louis, MO · Member since 2010 · 3 posts · 2 votes
    16y

    One thing to consider is the time it can take to just do one short sale deal. Plus you must have the home owner, lender and creditors on your side to make this deal work. In the end it can take up to one year to do 1 shor sale deal. Bank REOs are fast and you get them with a clean title. I have a video on my blog that explains this check it out if you like please leave a comment: [LINK REMOVED]

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