Experience in Foreclosure Properties When You Need It Most

Buyers have never had as many options as they do today to pick up foreclosed property at reduced rate over comparable homes. Buying a foreclosed property however is not as streamlined as a traditional purchase and that’s where the benefit of using an EBA comes in.

No matter if you’re a first-time homebuyer or a savvy real estate investor it’s especially reassuring to have an EBA who is experienced in foreclosure properties working on your side of the transaction. Your EBA will explain the differences in foreclosure status and how an offer is tendered depending on that status:

• If the home is in the early stages of foreclosure when the bank might entertain a offer
• If the home is listed on the MLS and/or being shown for sale, plus the history of offers made on the property that the bank did not accept
• If the home is being auctioned either online or on-site and the minimum bid and cash down-payment required.

The foreclosure process is a complex one with a myriad of variables that affect the purchase process and price. These factors depend on the policies and practices of the original lender and differences in state laws—logistics that take a true expert to sift through. Then there’s the condition of the home. Foreclosed properties can be in dire need of repair. In some cases, angry former owners have purposely damaged the home and removed appliances and fixtures. The run-down condition can also be a reflection of the former owner’s financial struggle that prohibited even routine upkeep.

The condition of the house may affect a buyer’s ability to qualify for an FHA loan, and your EBA can explain those requirements as well.

Experienced EBAs will tell you that not every foreclosed property is a smart purchase even if the price is dramatically reduced. If you’re a first-time buyer, an EBA will not limit the showings to just foreclosed properties, but will insist that you also see a number of other residences on the market so that you can make an informed comparison.

If you are an investor, your EBA will perform a market analysis and due diligence to define whether a prospective REO (Real Estate Owned) property, or lender-owned property, will show a profit whether you intend to lease it out or flip it for a profit in the near future. And because REO properties are routinely sold as-is, your EBA will assist you in finding expert repairmen to bring the property into shape.