Quote from @Bruce Lynn:
The REOs will be listed in the MLS and typically flagged as bank owned or REO properties. So better to get you a buyer's agent who can set up search focusing on these properties. Make sure also they are HUD certified so they can help you bid on HUD properties. You can find those at HUDHomeStore.com. Might not be many today, but there will be some coming down the pike I expect. Fannie and Freddie also used to have websites that listed their REO properties, but these would also be found on MLS thru your buyer's agent.
Working directly with banks is often much tougher. What I have typically done is find the property first....then track down the lender. If it is one of the big boys, very very tough to find the right asset manager, and they have their system for listing or getting it to market...so not often all that helpful anyway. On the smaller banks...like a hometown bank...I'd just call and ask for asset manager or loan department and start from there...90% of the time 1st person who answered would point me to the right person.....who would then talk to me....and either tell me how to make offer, or tell me their procedure and who would be getting the listing....then your buyer's agent makes an offer to/thru that agent.
What is your idea for contacting them? To get listings? To make offers? or something else.
Just to give you an idea though...for example there are only 35 HUD foreclosures listed today for all of Texas....all kinds of price ranges....preference is normally given to owner occupants, so if you ware wanting to buy and hold or flip, these are not for you as an investor...same with Freddie/Fannie or other government entity foreclosures....At one time maybe back in 2008 or so, there might have been 400 HUD homes in one county for sale. More foreclosures might be coming after the Covid forbearances and foreclosure postponements....but lots of equity now in many if not most homes, so foreclosure is typically not the issue it once was right now.
REOs are also not always the best deals too, like most people think they are...typically not pennies on the dollar. I am at some foreclosure sale every month for past 5 years or more and often the prices they sell for make your head spin counterclockwise. Super high prices for homes in poor condition.
Hey Bruce Thanks for that great feedback!
If it’s a smaller bank like hometown bank, do they always list on market? My idea was to make offers like you asked above. And I’d love to know where you think the honey pot is… Tax liens, NODs, non performing notes etc.
