Buying a Foreclosure - help

Asking for a friend. He wants to buy a foreclosure. He found one in a neighborhood he likes. His realtor isn't being too helpful with it, trying to steer him away from it. Does anyone have a good reccomendation on a realtor experienced with foreclosures or someone he can talk to about how it works?

Re: Buying a Foreclosure - help

Is it a foreclosure, or a short sale?

If it's a foreclosure -- or REO property, as we call them -- it's already owned by the bank, and it's a more straightforward transaction than a short sale. It's more akin to a traditional sale, except the bank is the seller. Although there's usually less room for negotiation than with other types of sellers because the bank already has incurred the cost of foreclosing on the house and has a clear number in mind.

A short sale is a much harder process, because there is a lot more uncertainty -- about what price the bank will accept, how long it will take if they do accept, how cooperative the seller will be (which is key), who is handling the negotiations with the seller's bank, and how experienced/skillful they are, etc.

Both types of sales are "as is" sales. And there is generally deferred maintenance/work to be done.

Where is the house? I assume it's listed, so he can always go to the listing agent. I'm always an advocate of having your own buyer's agent represent you, but with REO properties, the REO agents often have an ongoing relationship with the bank who owns the house and can provide good information about the particular home as well as the process with the particular bank owner.

Re: Buying a Foreclosure - help

I bought a foreclosure with Margaret Bzdewka from Keller Williams Realty. She was excellent. I recommend her to everyone.