Newbraunfelsdwelling’s Weblog

The buzzword in the real estate market right now is foreclosure. Unfortunately many of the people who obtained their mortgage from a subprime lender are now finding themselves unable to pay their mortgages. While our market is a much stronger market than some areas of California, Nevada, and Florida, we do have our fair share of great foreclosure deals waiting to be grabbed up.

But where are they are how do you find them?

Many websites will offer you foreclosure information for a fee. But you shouldn’t pay for this information, if you have a good buyer’s agent they will know all the sources to find the BEST foreclosure deals before anyone else does. Besides, if the foreclosure is a true bargain by the time it reaches these third party sites it is probably already under contract.

I am going to spill some of the secret sources to finding awesome deals before anyone else does. Here are three of the main types for foreclosure deals in Central Texas and how to find them:

1. HUD Homes-

HUD homes are homes that had mortgages insured by FHA/VA and have been foreclosed. When they are foreclosed they become a HUD home. You can find much more in-depth information here

HUD homes can be incredible bargains. These homes can be in great condition and do not always need work. To actually find HUD homes you must go to this website and search in your area. You must bid on the homes through an agent registered with HUD. In case you don’t know any, I am registered with HUD and have the experience to guide you through this process.

2. Judicial Foreclosures-

A judicial foreclosure is a foreclosure that a lender files with the county court. Notices are filed in the county 21 days prior to foreclosure. Sales occur on the first Tuesday of the month (regardless of holidays) usually on the county courthouse steps. Many agents keep current list of the foreclosures in their counties. You can also find this information at the county court.

With judicial foreclosures you need to do you homework as you buy the home as is. If there are any existing vendor’s liens or any excess liens at all you will inherit them along with the property. Also, it is important to verify that the home is insurable.

3. Short sales, Pre-Foreclosures, and Bank Owned Properties-

I have included these all together because most of these properties will be listed on the MLS and the best way to find them quickly is with the help of a buyer’s agent.

A short sale is the sale of a home where the sales price falls short of the owner’s mortgage balance. Some lenders will agree to accept the short sale proceeds and forgive the rest of the mortgage balance when the owner cannot make the mortgage payments. By accepting a short sale, the bank may be able to avoid an expensive foreclosure. The process usually takes longer than a regular sale. All offers must be reviewed by the bank prior to acceptance. This process can take anywhere from days to several months.

Pre-Foreclosures are homes that the homeowner is aware are about to be foreclosed therefore they are extremely motivated and often willing to sell for pennies on the dollar to avoid foreclosure.

Bank owned properties have already been foreclosed and are usually listed with a real estate agent. Like pre-foreclosures the contract and closing process can be much longer on these homes as the bank must review and approve of each step. Banks prefer to sell these properties as quickly as possible so they are often another great way to find a bargain.

You can do a lot of research on your own to find great foreclosure deals right here in New Braunfels, Seguin, and San Antonio areas. But to find the best deals from a partnership with a competent and motivated Buyer’s Agent who will keep you informaed on the BEST deals when they are hot.

And remember that Buyer’s Agents almost always are compensated by the seller and most of these foreclosure sources have already factored the compensation into their bottom line.

Utilizing the services of a Real Estate professional gives you the competitive edge in foreclosure deals that you need to grab them up before anyone else!