Click a Top 10 question below to read the answer:
Q1: If the property is in pre-foreclosure, how do I buy before foreclosure?
Answer: When a property is in pre-foreclosure (NOD, LIS), the owner still has a chance to stop the foreclosure process by paying off what is owed or by selling the property. The pre-foreclosure period can last several months, so you may need to be patient when trying to contact the owner in default.
Continue reading this answer on pre-foreclosure...
Q2: How can I buy an auction property?
Answer: After a property owner misses several mortgage payments, the owner has a pre-foreclosure grace period of a few weeks to a few months -- depending on the state -- to bring the payments up to date and stop any foreclosure proceedings. If the owner does not bring the delinquent payments up to date during the pre-foreclosure period, the property will be sold at a public auction.
Continue reading this answer on auction property...
Q3: How do I buy bank-owned REO properties?
Answer: The lender/bank has taken ownership of the property, either through an agreement with the owner during pre-foreclosure or at the public auction. The lender usually sells the property to recover the unpaid loan amount. The lender typically clears the title for any buyer, but the potential bargain is often less than a pre-foreclosure or auction property.
Continue reading this answer on bank-owned REO property...
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Q4: How do I buy property I see posted on RealtyTrac?
Answer: How you go about buying a property posted on RealtyTrac depends on the property status. If the property is For Sale By Owner or a Resale Home, you would approach the owner or the listing agent to make an offer. If the property is in foreclosure, the process of buying will differ from the typical real estate purchase.
Additional info: About buying property posted on RealtyTrac
Q5: How do I contact the lender to buy a bank-owned property (REO)?
Answer: If the property is Bank Owned (REO), your first step is to contact the bank, called the lender on RealtyTrac's Property Details page. The lender now owns the property. You should ask for the lender's REO department or bank-owned property department to proceed with possibly buying the property.
See: Checklist for Buying Bank-Owned REO Property
Q6: How do I check property liens, value and equity?
Answer: Additional liens against a property (these can include delinquent taxes) can be researched several ways.
Subscribers can...
- Get free access bankruptcy information for properties listed on RealtyTrac. If the property owner has filed for bankruptcy, a flag will appear on the Property Details page with a link to the full information.
- Click the History of Notices link on any Property Details page to view a list of data records RealtyTrac has for that property. Other data records may have more details about the property that were not on the original Property Details page. Subscribers can use this tool to check if previous foreclosure notices have been filed and if more than one lender is foreclosing.
- Use RealtyTrac's Property Analyzer to calculate a property's potential bargain based on offer price, down payment, loan amount, interest rate, rehab costs, and many other factors. Subscribers can also use Property Analyzer to check comparable rental rates in the area if the property is being purchased as a rental. On any Property Details page, click the "Property Analyzer" tab. View this video on how to use the Property Analyzer.
- Contact an Agent to find a local real estate agent in the RealtyTrac Agent Network who can help you buy a property. If you give them the address or parcel number of the property on RealtyTrac, many real estate agents have access to title information that allows them to research a property and find the liens against the property.
- Contact the local property assessor (either through county or city government) and ask who is listed as the owner of the property. The assessor should also have the owner's mailing address. Go to statelocalgov.net to find the local property assessor in your area.
- Check the county tax collector's (or other office responsible for collecting property taxes) website to check for any delinquent property taxes on the property.
It's important to research liens before you buy a property, whether the property is a foreclosure or not, because you as the buyer may be responsible for paying off those liens.
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Q7: What are foreclosures and how do I learn more about buying foreclosures?
Answer: Foreclosure is a legal process that allows a lender/bank to sell or take possession of a property due to non-payment of a loan that is secured by that property. RealtyTrac posts properties that have already been foreclosed (Bank Owned) and properties that are in the foreclosure process (Pre-Foreclosure, Auction). Buyers have three opportunities to purchase property during foreclosure. Buying Pre-Foreclosure, Buying at Auction, Buying Bank Owned (REO)
Read an Overview of the foreclosure process, which includes links to state laws and other resources.
Q8: How does RealtyTrac help me pursue and buy properties once I subscribe?
Answer: Although RealtyTrac is not an agent or broker directly selling properties, RealtyTrac has several tools and resources available to subscribers to assist in pursuing any property listed in the RealtyTrac database. We are continuing to add features to make the site more useful to buyers. Explore: What RealtyTrac provides you
Get Financing Options using RealtyTrac's financing partner.
Contact an Agent to find a local real estate agent in the RealtyTrac Agent Network who can help you buy a property.
Click the Contact Owner link on any Pre-Foreclosure or Auction Property Details page, and send postcards directly to owners in default with an offer to buy before the property is sold at public auction. Subscribers can print and mail the postcards or have RealtyTrac mail the postcards for a nominal fee.
Subscribers can check the History of Notices section on any Property Details page to view a list of data records RealtyTrac has for that property. Other data records may have more details about the property that were not on the original Property Details page. Subscribers can use this tool to check if previous foreclosure notices have been filed and if more than one lender is foreclosing.
Schedule Daily E-mail Alerts on RealtyTrac's Property Search page to receive daily e-mail alerts of new property posted that matches your search criteria. After you enter your search criteria on the Property Search page, type in a name under Search Name, check the "Receive daily notifications of new listings that match this search" box and click "Save My Search."
Subscribers can use RealtyTrac's Property Analyzer to calculate a property's potential bargain based on offer price, down payment, loan amount, interest rate, rehab costs, and many other factors. Subscribers can also use Property Analyzer to check comparable rental rates in the area if the property is being purchased as a rental. On any Property Details page, click the "Property Analyzer" tab. View this video on how to use the Property Analyzer.
Click the Save to My RealtyTrac link on any Property Details page to save properties of interest for quick reference. Subscribers can view these preferred listings anytime by clicking on the My RealtyTrac tab after logging in to the site.
Q9: What does the dollar amount listed on RealtyTrac mean?
Answer: The amount listed on RealtyTrac is usually based on the defaulted lien amount or the transfer value. Called the Balance or Opening Bid on RealtyTrac, the defaulted lien amount is what the foreclosing lender needs to break even. If our data sources don't provide that amount, then we use the Trans Value, which is the amount paid for the property when it was purchased by the owner in default, or the Default Amount, the amount the homeowner is behind on payments.
This is not the asking price for the property; it's a starting place for you to begin your negotiations with the seller. The goal is to get a good bargain, but you shouldn't necessarily expect to buy the property for just the defaulted lien amount.
Either the defaulted lien amount or the transfer value gives a good estimate of what is needed to satisfy the lender. If you subtract this amount -- and any other liens against the property -- from the estimated market value of the property, you will have a good idea of the potential bargain that could be realized with the property. This will also give you a solid foundation for making an offer to the seller.
Subscribers can use RealtyTrac's Property Analyzer to calculate a property's potential bargain based on offer price, down payment, loan amount, interest rate, rehab costs, and many other factors. Subscribers can also use Property Analyzer to check comparable rental rates in the area if the property is being purchased as a rental. On any Property Details page, click the "Property Analyzer" tab. View this video on how to use the Property Analyzer.
If you work with a real estate agent -- recommended for first-time foreclosure buyers -- the agent can provide professional advice on the value of the property and how much you should offer. Contact an Agent to find a local real estate agent in the RealtyTrac Agent Network who can help you buy a property.
If you don't see the Balance, Opening Bid or Trans Value on a property, you should check if RealtyTrac has other records for that property. Subscribers can check the History of Notices section on any Property Details page to view a list of data records RealtyTrac has for that property. Other data records may have more details about the property that were not on the original Property Details page. Subscribers can use this tool to check if previous foreclosure notices have been filed and if more than one lender is foreclosing.
If RealtyTrac is not able to get the Balance, Opening Bid or Trans Value, then we may base the Amount on the Default Amount or the Assessed Value.
The Default Amount is the amount the owner in default is behind on mortgage payments and will only display for pre-foreclosures. This is typically at least three to four months worth of back-owed payments to the lender/bank.
The Assessed Value is the amount the county property assessor has valued the property for the purpose of levying property taxes. This is a good number to look at, as long as you understand that the assessed value may not actually equal the market value for the property. You can contact your county assessor to find out how to put the assessed value in context.
Q10: How do I find the market value for a home?
Answer: For subscribers, RealtyTrac provides Estimated Property Market Values on the Property Details page of property posted on RealtyTrac. The Property Details page also includes tax lien and bankruptcy information.
Register for a free trial subscription to get full access to RealtyTrac's property data and services.
For more detailed information about the property's estimated market value, click on the "Comp Sales & Listings" tab on any Property Details page to see nearby properties that have recently sold and nearby properties that are listed for sale -- along with an estimated property value based on the recent sales and estimated value based on nearby listings.
Market value is an estimate of what the property will sell for on the current real estate market. Keep in mind, when determining the final offer you want to make on the property, you will need to balance the market value with any liens against the property and estimated repairs.
Subscribers can use RealtyTrac's Property Analyzer to calculate a property's potential bargain based on offer price, down payment, loan amount, interest rate, rehab costs, and many other factors. Subscribers can also use Property Analyzer to check comparable rental rates in the area if the property is being purchased as a rental. On any Property Details page, click the "Property Analyzer" tab. View this video on how to use the Property Analyzer.
If you work with a real estate agent (which is recommended for first-time foreclosure buyers), the agent can provide professional advice on the value of the property and how much you should offer. Contact an Agent to find a local real estate agent in the RealtyTrac Agent Network who can help you buy a property.
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Visit Foreclosure Center
Visit our Foreclosure Center to read more detailed information about foreclosures.