The Benefits of Working With a Realtor in Real Estate Foreclosures

If you are in the market for a new house, foreclosure real estate is a great place to start.

Foreclosures can be tricky, especially if you don't have much experience in the field. A realtor will have the necessary expertise and knowledge to help you navigate this complicated process. A realtor will also be familiar with many types of real estate, including Trustee's sale and REO properties.

Pre-foreclosures

When it comes to buying pre-foreclosures, working with a real estate agent can be a tremendous benefit. Realtors are experts in the pre-foreclosure process, so they can help you find the perfect property and pursue it until you have an offer that meets all of your requirements.

A pre-approval is essential when purchasing pre-foreclosures because it shows the seller that you're serious about buying the property.

A realtor can contact the homeowner on your behalf, allowing you to make an offer before the auction. You can contact the homeowner directly by sending a postcard or letter, or knocking on their door.

Regardless of the method you choose, it's important to remember the distress of the homeowner. If you're able to convey this concern and demonstrate patience and understanding, you may find an opening with the homeowner, who is likely to appreciate your professional approach.

Trustee's sale

Choosing a realtor for a trustee's sale in a real estate foreclosure is a good move, as a professional will help guide you through the process and ensure that your interests are protected. The trustee has a duty to conduct the sale impartially and fairly. Failure to supply this information will result in "chilled bidding" and can result in your purchase being cancelled.

Once you have found a property you are interested in, contact the trustee or attorney. These professionals will represent the lender and run the foreclosure auction.

These auctions take place on behalf of the lender or government agency, and the trustee will accept bids. During the foreclosure auction, the buyer's agent will never contact the bank directly. Instead, he or she will present the offer to the listing agent or government agency.

REO

When buying an REO property, it's imperative that you work with a realtor. A realtor can help you navigate the process of getting your loan approved.

Realtors also help you find a lender and negotiate the terms of your offer. Banks want to get REO properties off their books as quickly as possible, so the more prepared you are, the faster the process will be. A prequalifying mortgage from your lender will also speed up the process, because the lender will already know that you're financially capable of purchasing the property. That way, the lender is more likely to accept your offer.

If you're not comfortable with working with a mortgage investor, consider hiring a real estate agent. Banks typically hire realtors to sell their properties, and realtors are a great resource for that. Using a realtor when buying an REO property can increase your chances of negotiating a good price. A real estate agent can negotiate the best price possible, and can also help you determine how much leeway you have to work with.

Short sale

When a short sale is involved, a real estate agent is invaluable. Realtors are familiar with the process, and can help the seller navigate the details. Lenders require a hardship letter from the seller, explaining their financial circumstances and why the short sale is necessary. Having a strong and compelling hardship letter will help the short sale process go smoothly. Include corroborating materials such as a termination letter or medical bills to back up the seller's statement of hardship.

A real estate agent can look at comparable properties in your area, check public records, and give you advice on how to make an offer. In a short sale, a buyer's agent works with the lender, but they can also work with the seller's agent. A realtor can give guidance on the best offer for the property, especially if the price is low. Remember that short sales are not set in stone, so always do a thorough home inspection before accepting an offer.