With all the talk of foreclosures across the country I found it necessary to clear the air on some of the many questions asked by those interested in purchasing Idaho foreclosures. There is a lot of confusion as to how to find and purchase foreclosures and not all Idaho foreclosures are created equal.
There are two main types of foreclosures. The first are typically referred to as "Auction" or "Trustee" properties. When a homeowner looses a home in Idaho the home usually goes to a "Trustee" and the home is auctioned off at a "Trustee Sale". At that auction the winning bid must pay cash or a cash equivalency when the auction is complete. How does the auction work? Normally the representative of the auction will name the minimum bid the mortgage lender will take for the property. The representative will then hear bids from anyone bidding on the property that is being auctioned. Bidders take turns bidding the property up to the price it eventually sells for. At this time is when the cash is due for the property. There is no time for the person winning the bid to go arrange for financing. It is simply cash on the spot. Once the sale is complete you will receive a "Trustees Deed" for the property which is the type of deed used at auctions where a Trustee is the representative.
Where can you find a list of these auction properties? An experienced Idaho Realtor who specializes in or has extensive experience with auction properties can assist you in obtaining a list of these properties which they obtain from different sources. I have a service I subsribe to that gives me daily updated information on all local foreclosures. The newspaper and other publications also list these auction properties and the dates each are scheduled to go to auction.
The other type of Idaho foreclosed properties are Real Estate Owned or REO properties. These are real properties that went to auction and were never purchased. They are typically bank owned properties that are usually in need of some minor or major repair. You see it takes months for a homeowner to loose a home and by the time the bank ends up with the property the property can need some serious TLC. Many times the banks will sell the properties in "As Is" condition without any warranties expressed or implied. On occasion the bank will repair the property to a certain extent and price the property accordingly. Where can I find these Idaho foreclosures? Many sites including Realty Trac post these bank owned properties on their sites. Also, many of these REO's are listed with Realtors and placed in the multiple listing service.
When these Idaho REO properties are first listed for sale they are priced pretty close to market value, especially if the properties have been repaired. If the properties do not sell in a specific time frame the price is usually lowered every few weeks or months until the property actually sells. Unlike auction properties you will have time to obtain financing for Idaho REO properties. You need to know what kind of financing is available for these REO's and talking to an experienced Realtor is the best way to find out.
Idaho Short Sale properties are properties that are still owned by the seller and the seller's bank has agreed to lower the amount owned to them so the seller can lower the asking price hopefully below market price to make it attractive to a potential buyer. Just like the Idaho REO properties you will have time to secure financing from a mortgage lender. One caveat; just because a seller accepts your offer on a home does not mean it is a done deal. That seller's mortgage lender must approve the sale and the price you have offered. An experienced Realtor will walk you through the process and assure you have the best opportunity available to secure a short sale property in Idaho.
There you have it. I hope these tips have been useful to you. I have been a licensed Realtor in Idaho since 1980 and have worked with numerous investors and banks in the purchase and sale of short sale, auction, REO and Idaho Foreclosure properties. I also have a wonderful title company I work with that has experience working with mortgage lenders. This experience can make the purchase of your short sale, auction or REO property painless and the great experience it should be.
Posted By: George Tallabas - Boise Idaho Real Estate Agent - Associate Broker
with RE/MAX Advantage, Canyon Counties #1 Brokerage in sales and listings
specializing in Boise Idaho Real Estate and Southwest Idaho Real Estate.
Native Idahoan and Boise Idaho Real Estate specialist serving Boise, Meridian Eagle, Nampa, Caldwell and the surrounding Treasure valley area of southwest Idaho. Specializing in residential, investment, land and commercial real estate. Search thousands of MLS listings at Boise Homes for sale and learn all about Idaho by visiting Search Idaho Homes