In a real estate world dominated by the lure of a “good deal” with the multitude of foreclosures on the market, I’m continually surprised to find many potential buyers shy away from these purchases due to the complexity of the transaction.
In an attempt to de-mystify the chain of command in the REO world, allow me to throw out a disclaimer. I am certainly NOT an expert in the REO world. However, I believe with some inside info this mystery can be somewhat de-bunked.
The vast majority of foreclosures in our area fall into one of three categories HUD,Fannie Mae or Freddie Mac, click the highlighted titles to search for current available homes. Next in the chain of command within the State of Ohio are the Asset Management Companies, Matt Martin, Ofori, or Hometelos. These companies “manage “the home for the banks (or other agencies) involved. This entails, securing the property, visual inspections including pictures, snow removal, yard maintenance, etc.
Last and certainly not least are the listing agents appointed to handle the selling end of the transaction when an interested buyer comes along. As with anything in the world of real estate, the availability/reachability of the listing agent varies. Each agent is likely handling a large quantity of foreclosed listings and often times general questions are referred to assistants or secretaries. The most common misconception is that the listing agent must be the one to show the property. Simply put, this is false. Choosing one agent to show multiple homes, even foreclosures has tremendous benefits for the buyer, but we will touch on that in a later article.
If you’ve decided to venture into the realm of negotiations/contracts/placing a bid, depending on which company you are dealing with, know this…Each government agency as well as individual management companies play by differing sets of rules and requirements when making an offer, from inspections to earnest money and even down payment amounts. Frustrating? Yes, also a reality.
Your Realtor can be a wealth of information regarding foreclosed/government/bank owned properties. It is highly suggested that you dig into your “homework” before embarking on this summit. As always, I would be happy to answer any questions regarding the world of real estate, happy searching!