Short Sale or Bank Owned home listings?

Is there a website to look for bank owned homes or short sales? DH mentioned looking into it because we're willing to completely renovate. I know I've seen "zombie houses" get bought and renovated that I never noticed being listed on MLS.

Short Sale or Bank Owned home listings?

You can call your town. That's how I found info on a house we thought about.

Re: Short Sale or Bank Owned home listings?

We bought a short sale and totally remodeled. The listing was on all the real estate sites--Redfin, Trulia, MLS, etc.

Re: Short Sale or Bank Owned home listings?

My husband finds them via auction sites sometimes. His agent also uses different resources to find them as well.

Re: Short Sale or Bank Owned home listings?

Short sales are listed on MLS. I handle short sale listings frequently. A short sale is still being sold by the homeowner, through the regular channels (using an agent, listing the home on MLS). Once you find a home and make an offer, that's where the differences kick in, in terms of process. The seller's lender who holds the mortgage (or mortgages) must approve the sale.

It's not really just about being willing to renovate (and some short sales are in good shape, although it's common for them to fall into disrepair because the owners are financially distressed). It's about being willing to tolerate the uncertainty of if/when you can get the home. It can take banks a long time to approve the sale, and very often a seller's lender will come back and want more money than the buyer has agreed to pay (the banks do their hown valuations). So you may be in contract for a long time (months and months), only to be told the bank won't approve the sale or that you will have to pay significantly more to get the house. They are not always "steals."

Also, you generally have to be willing to take a short sale "as is," not just in terms of condition, but things like missing C/Os or open permits, tenants that may not leave willingly, etc.

Foreclosures are different - they are homes that the bank has taken possession of and are now bank owned. Sometimes they sell in auctions (literally on the courthouse steps), but you are competing with investors there and typically buying homes sight unseen (at least in terms of interior).

If they don't sell at auction, they usually come back on MLS and other sites as REO properties, and are listed with an agent, can be shown like any other listed home. They may have a lot of deferred maintenance/hidden damage, as they have been neglected for some time (the foreclosure process typically takes years). But once you get an accepted offer on an REO, it's a more standard process (you negotiate directly with bank upfront, so then you don't need to wait for approval later, or worry the bank will want more after you go to contract).

I personally don't think short sales or foreclosures are usually a good idea for most typical buyers who are looking for a primary residence and need or want to be in by a certain timeframe. I know people successfully buy them and I've successfully sold short sales, but often it's investors who are looking to flip a house that are in a better position to buy (can pay all cash, deal with permit/CO issues, wait a long time to get approval, etc.).

Re: Short Sale or Bank Owned home listings?