There is a new listing on the market. MLS comments show it is in foreclosure, notice of default, short sale. What questions should I ask the L.A. to probe and see if its worth our time offering?

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Robert Johnson, Real estate broker serving San Fernando Valley. (E H Realty)

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Rainmaker
789,206

The Woodland Team of Texas

The Woodland Companies - Austin, TX

Land Specialists

These are too complex for most buyers to deal with.

Feb 12, 2019 08:57 PM

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Bob Crane

Stevens Point, WI

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Bob Crane

Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI

Forestland Experts! 715-204-9671

For all but investors, foreclosures are far to complex and risky.

Aug 23, 2018 10:15 PM

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Bob Crane

Stevens Point, WI

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Robert Johnson

E H Realty - West Hills, CA

Real estate broker serving San Fernando Valley.

Thank you all for the feedback. The buyer decided to move on to other properties, however I will use all the information and save it for future reference.

Sep 18, 2015 06:50 AM

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Rainmaker
8,056,402

Roy Kelley

Retired - Gaithersburg, MD

If you are smart, you will use a buyer agent to advise you on the market conditions and the specific property. The listing agent works for the seller.

Sep 18, 2015 01:43 AM

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Rainmaker
292,685

Jack Lewitz

Exit Strategy Realty - Evanston, IL

Who is doing the negotiations with bank? I find many do not understand how to negotiatie a short sale nor do they price it right to get the short sale approved. The bank will do a BPO on the property and if this is a new listing then you are in the beginning process. Will your buyer wait. If not move on.

Sep 17, 2015 11:24 PM

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Rainmaker
1,466,257

Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

Robert Johnson How many liens and type of liens.

Sep 17, 2015 11:17 PM

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Rainmaker
699,277

Chris and Dick Dovorany

Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL

Broker/Associate at Premiere Plus Realty

How many banks are involved. Are all of the banks ready for a sale.

Sep 17, 2015 11:08 PM

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Rainmaker
3,416,159

Scott Godzyk

Godzyk Real Estate Services - Manchester, NH

One of the Manchester NH's area Leading Agents

If it is a short sale, chances are it wont be quick. Has the short sale been approved by the sellers bank? if so check to see if it is in writing from their bank. If it hasnt started yet, run. If it is in foreclosure, when is the sale date? then you will know if you have time to close. Say a foreclosure is scheduled for 21 days and you need 30 to close, you are wasting your time.

Sep 17, 2015 10:34 PM

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Rainmaker
921,504

Annette Lawrence , Palm Harbor, FL 727-420-4041

ReMax Realtec Group - Palm Harbor, FL

Making FLORIDA Real Estate EZ

"Has a previous offer been accepted and failed?"

This reveals if the bank is fishing or selling.

Be aware, most banks, after accepting a purchase offer, and building up the hopes of the buyer, will place the house on Auction effectively kicking your buyer, and the contract, to the curb.

Know the history of the lender, Prepare your buyer for betrayal. Know the real status, revealed by previous activity (BPO, Appraisal) before thinking this house is actually for sale.

Sep 17, 2015 10:12 PM

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Rainmaker
115,482

Jeanne Feenick

NextHome Premier - Basking Ridge, NJ

The Agent you choose REALLY does make a difference

As if it is really for sale. I get many inquiries on pre-foreclosures which would fall int your category of "notice of default". In my mnd, those are not a good use of your time.

Sep 17, 2015 09:59 PM

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Rainmaker
2,411,367

Lise Howe

Keller Williams Capital Properties - Washington, DC

Assoc. Broker in DC, MD, VA and attorney in DC

IS It being professionally negotiated or is the agent doing the work. There is also a difference beween being in foreclosure and a short sale - so which is it? The timing is very different between the two - how many letters have they gotten if they are in foreclosure - what is the real situation - what communications have they gotten from the bank?

Sep 17, 2015 09:38 PM

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Rainmaker
2,538,679

Joe Petrowsky

Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT

Your Mortgage Consultant for Life

Good morning Robert. It is important to understand where in the process the foreclosure is, is there someone in place that can negotiate a purchase.

Sep 17, 2015 06:27 PM

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Rainer
145,403

Andrzej Niemyjski

Realty One Group - Sun City West, AZ

Yes you need to find out where exactly in the foreclosure process this property is at. Have they tried working with the lender and are they willing to work with the owner?

Sep 17, 2015 03:42 PM

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Rainmaker
402,026

Jill Murty, Realtor - Orange County, CA

Movoto - Laguna Niguel, CA

I think one of the most important things is to manage your buyer's expectations. Timelines are unpredictable and they need to be aware of that.

Ask if there are liens on the property, such as tax liens.

If there's a homeowner's association, ask if the seller is delinquent on HOA dues. Back dues, plus late fees, attorney fees and collection fees add up very quickly. The buyer is expected to pay those fees, though they can sometimes be negotiated down.

Sep 17, 2015 03:18 PM

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Rainmaker
3,988,113

Debbie Reynolds, C21 Platinum Properties

Platinum Properties- (931)771-9070 - Clarksville, TN

The Dedicated Clarksville TN Realtor-(931)320-6730

Has the agent spoken with the negotiator and does the agent know the date of sale? Another question is with a good offer can the negotiator get the sale pushed out?

Sep 17, 2015 02:16 PM

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For all but investors, foreclosures are far to complex and risky.
Thank you all for the feedback. The buyer decided to move on to other properties, however I will use all the information and save it for future reference.
If you are smart, you will use a buyer agent to advise you on the market conditions and the specific property. The listing agent works for the seller.
Who is doing the negotiations with bank? I find many do not understand how to negotiatie a short sale nor do they price it right to get the short sale approved. The bank will do a BPO on the property and if this is a new listing then you are in the beginning process. Will your buyer wait. If not move on.
How many banks are involved. Are all of the banks ready for a sale.
If it is a short sale, chances are it wont be quick. Has the short sale been approved by the sellers bank? if so check to see if it is in writing from their bank. If it hasnt started yet, run. If it is in foreclosure, when is the sale date? then you will know if you have time to close. Say a foreclosure is scheduled for 21 days and you need 30 to close, you are wasting your time.
"Has a previous offer been accepted and failed?"

This reveals if the bank is fishing or selling.

Be aware, most banks, after accepting a purchase offer, and building up the hopes of the buyer, will place the house on Auction effectively kicking your buyer, and the contract, to the curb.

Know the history of the lender, Prepare your buyer for betrayal. Know the real status, revealed by previous activity (BPO, Appraisal) before thinking this house is actually for sale.
As if it is really for sale. I get many inquiries on pre-foreclosures which would fall int your category of "notice of default". In my mnd, those are not a good use of your time.
IS It being professionally negotiated or is the agent doing the work. There is also a difference beween being in foreclosure and a short sale - so which is it? The timing is very different between the two - how many letters have they gotten if they are in foreclosure - what is the real situation - what communications have they gotten from the bank?
Good morning Robert. It is important to understand where in the process the foreclosure is, is there someone in place that can negotiate a purchase.
Yes you need to find out where exactly in the foreclosure process this property is at. Have they tried working with the lender and are they willing to work with the owner?
I think one of the most important things is to manage your buyer's expectations. Timelines are unpredictable and they need to be aware of that.

Ask if there are liens on the property, such as tax liens.

If there's a homeowner's association, ask if the seller is delinquent on HOA dues. Back dues, plus late fees, attorney fees and collection fees add up very quickly. The buyer is expected to pay those fees, though they can sometimes be negotiated down.
Has the agent spoken with the negotiator and does the agent know the date of sale? Another question is with a good offer can the negotiator get the sale pushed out?