Where and How to Find Bank Owned Property and HUD Foreclosures
95Bank and HUD Foreclosures
There are currently hundreds of thousands, perhaps millions of foreclosed homes for sale in the USA. Despite what you or I may think about the current state of the U.S property market and the mis-handling of the situation by the financial institutions, the simple fact is that most of these are bank foreclosed homes or hud homes. Foreclosure listings are bursting at the seams with these bank owned homes. In fact, the amount of bank owned property continues rising, with no end in sight. This presents an enormous opportunity to buy property as an investment at a low price. I will not make the mistake of trying to tell you this property is “50% below market value,” because the market has dropped considerably and many of these properties are not in prime condition. That doesn't mean there are no bargains to be found, just that you shouldn’t believe much of the hype produced by the real estate companies, media and foreclosure listing sites.
So, where to find these investment properties?
This is a simple guide to where to find bank foreclosed properties, and HUD foreclosures, plus investment property for sale. How to buy foreclosures is another question, but neither the banks, nor the government wish to keep these properties on their portfolio indefinitely. The amount of bank owned property for sale is quite staggering, and the maintenance costs alone are eating into the value on a daily basis. So, they wish to sell them and they wish to sell them now. Being the government and banks, they do not go out of their way to make it easy to find them, but I have compiled a collection of links to the best sources.
Bank owned property
The banks call these homes REO properties or Real Estate Owned. I am not sure why they are called this other than to try and convince you they are something other than homes that have been repossessed. That should not discourage you from buying one though. There are many foreclosure listing sites attempting to sell you access to a list of these properties, but here is the information – for free.
How did the subprime Mortgage Crisis Begin?
These properties are not an asset to the bank. The maintenance costs and depreciation is costing the bank money on a daily basis. Foreclosures are set to rise for the foreseeable future and the banks are keen to dispose of these properties as quickly as possible. The price will reflect both the condition of the property and the condition of the market. But as they are banks, they will continue to perpetuate the problem by offering low cost start-up mortgages on these properties, cleverly hiding the fact that the cost will increase after a period of time. This is how the subprime crisis started in the first place. These properties can be a bargain. Do not fall into the bank’s trap though. Make sure you can afford the mortgage costs and take into account the cost of restoring the property to full value condition. All of these properties will also be listed with a local real estate agent.
HUD Foreclosures
Despite the fact that Freddie Mac and Fanny Mae (aren’t those lovely, friendly names for government sponsored money lenders?) are ostensibly not part of the government, I have included them here because they actually are.
Major Banks that hold foreclosure Properties and a link to the Listings:
- Bank Owned Properties
Search for foreclosed bank properties, reo properties, bank sale properties. - Bank of America
- citimortgage - citibank's mortgage arm
- Chase Mortgage
- Downey Savings
- HSBC Real Estate Owned
- IndyMac Bank
- Regions Banking
- Wells Fargo Home Mortgages
- HUD Homes
The U.S Department of Housing. The proviso with HUD foreclosure homes is that they are first offered to owner-occupiers. I.E. you may only buy one if you plan to live in it yourself. But after a period of time, these homes are then offered to anyone - Homesteps
Another lovely, friendly name. Homesteps is part of the Freddie Mac organization and deals with the sale of foreclosure properties. The actual name of Freddie Mac is The Federal Home Loan Mortgage Corporation (FHMLC). Oddly enough, they will also le - Fannie Mae
Fannie Mae has an extremely good search facility, allowing you to search by property type, or region. The Federal National Mortgage Association (FNMA). Not to be confused with the chocolate manufacturer by the name, Fanny May.
Other Government Owned Properties
It is not only the mortgage arms of the government that seize and sell property. Here is a list of links to other government agencies that hold large numbers of homes.The Internal Revenue Service (IRS), the Marshals and a few other agencies have some interesting property to sell.
USDA
The United States Department of Agriculture is not only responsible for developing and executing government policy on farming, agriculture, and food, promoting trade in the U.S and overseas, and looking after the needs of America’s agricultural workforce. It also holds large numbers of foreclosure properties, mostly farms and businesses but also family homes and other seized agricultural property.
The United States Marshals Service
The U.S. Marshals Service enforces the Department of Justice's Asset Forfeiture Program and disposes of properties seized and forfeited by federal law enforcement agencies and U.S. attorneys nationwide. According to the website, the program has become a key part of the federal government's efforts to combat major criminal activities, by generating revenue. They sell property seized by the F.B.I, The DEA, the Department of Homeland Security, the ATF and the U.S. Attorney’s office.
Internal Revenue Service
The IRS seizes and sells property to cover unpaid internal revenue taxes. They have large numbers of homes along with commercial real estate and other items. Mixed in with the real estate is art, antiques, boats and all manner of other items. Much of the real estate is offered for quick sale in an auction making it a potentially good investment property for sale. It is important to check the title offered and other encumbrances before making a bid. The website is very detailed with good descriptions and listing by state.
GovSales
The government has also set up a new portal where there is a list of homes for sale by state. These properties have been seized, either by the U.S Department of Housing and Urban Development (HUD), Agriculture (USDA) and Veteran’s Affairs (VA).
There is also a listing for property for sale by state and local government.
On the website, there are also listings for commercial properties, and land, and International Real Estate. Most of the international listings are for residences in South America, Indonesia and Africa. Interested parties can contact the government through this website.
U.S General Services Administration
Perhaps the most interesting governmental property sales portal is the U.S. General Services office of property disposal. They deal with the more esoteric property available such as lighthouses. These are not strictly foreclosure property, but interesting nonetheless. One of the recent interesting properties offered for sale is the Seattle INS Federal Building. 1.1 Acres in size, four stories high and an attic mechanical penthouse building of 77,000 square feet and listed on the Historical Register.
Some of these buildings, such as the lighthouses are available to be converted into private residences. If you feel the need for a little isolation, may I respectfully suggest the Point No Point Lighthouse in Chesapeake Bay, although bidding was suspended at $135,000 after the Navy intervened claiming that the lighthouse serves as a boundary marker for one of their restricted area danger zones. Caveat Emptor.
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- Donald Trump
One cannot think of the Luxury Property Development World without the name Donald Trump coming to mind. An interesting look at "The Donald"
Conclusion
Realtytrak, a foreclosure listing specialist claim to have over a million homes on their site. Foreclosures will continue to increase. This means two things: One, there is a glut of low price property and two, this will continue to drive average prices down. There are a few exceptions to this – Manhattan luxury condominiums will likely not be hitting the auction block at a 50% price reduction any time soon, and there are certain areas of the country largely unaffected by the problem.Some states in particular have vast numbers of property – Florida and Nevada are two examples.
Buying a foreclosure property is a good way of either entering the property market or building a property investment portfolio, but there are some things to bear in mind:
- Much of this property is in a poor state of repair. The longer it remains unsold, the worse the condition becomes. The banks will not spend vast sums maintaining these properties and it is good advice to hire a contractor to inspect the building before purchase.
- The market is falling. It is unlikely you will be able to flip any of these properties quickly. They should be looked at either as a longer term investment, or as a primary residence or rental unit. This is not always the case, and if you are planning on flipping the property, I suggest reading either Donald Trump’s book or buying his audio CD. If anyone knows how to screw every penny from a real estate deal, it is him.
- Take legal advice to ensure the property is free and clear of any outstanding liens. Generally this is no longer an issue, but better safe than sorry.
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It is important to educate yourself as to the processes, legal requirements, tax costs and other aspects of buying a foreclosure home. Here are some helpful sites and links to more resources.
Don't listen to this guy in the video on the right. He talks about buying property, "thirty or forty grand under market." If that's what it sells for - that is the new market price.
- Property Investing
International and Overseas Property Investing Advice - Luxury Real Estate
The International luxury real estate source for buyers, sellers, investors and real estate professionals - Foreclosure Listing Sites-Where to find Pre-Foreclosure and Foreclosed Homes
- Stop Foreclosure-How to Avoid Foreclosing on Your Home
- How to avoid foreclosure scams
- How to Buy a Property in Pre-foreclosure
- First American Reo Servicing
- Living off the grid in a mail-order home
House Arc may look like an egg-shaped antidote to McMansion mania, but this small mail-order home was really designed as a way to quickly provide housing to victims of disaster. - 3 days ago
- Be prepared for any home emergency
Sometimes disaster strikes, despite your best efforts to prevent it. And that means you should always be ready for the unexpected. - 3 days ago
- 30-year mortgage rate hits another record low
Buying a home got even cheaper this week as interest rates on the 30-year fixed-rate mortgage set a record low for the fourth week in a row. - 4 days ago
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Thanks. That's one of the things I like about hubpages (sometimes) - the varied interests here. I am also looking forward to going through yours.
As to the Esther Williams movies - If I was going to be interested in synchronized swimming, that woudl be the one :D
:) I didn't realize about the cook thing even though it was in your profile because I've been so pushed restoring Hubs since I've returned I haven't had as much time to browse as I would like.
We had a fellow here at the time I left I adored his Hubs. I'd have to look up the name but he was a chef as well and I had him favorited too. His specialty was cajun which is a weakness for me. le drool.
I do not know what has become of him, but he was a lovely person as well, for Hub back and forths.
Hmmmm. I love cajun food, although I don't think I have posted any here. I tend to write them after I have cooked them and I live in France now. I just can't find strong enough spices here - Although the French cuisine is great, they do not like strong spices and everything is toned down.
Oh, and I lit a couple of ttime bombs ine the forums, I am waiting for them to go off, LOL
I'm trying to stay out of it but I have to say I fell out and died laughing at the tag end of that one. I'm a coward, friend. I like good-natured debate but I hate conflict.
I don't know what all is going on under the surface of that and actually I'm trying to avoid the forums totally. Forums make a spot for the mutually immature to form bands and harass others. I just fled from that, as the victim. It wasn't a hoot.
I agreed with you by the way.
I agree - it's no fun.
I just can't stomach the holier-than-thou attitude and almost can't stop myself from antagonising them - but I have had more people join my fan club in the last few days than I would have normally expected.
well, it can be fun when it's playing. back in the day on my board we would all do these really funny insults, but everyone knew it was fun and we would try to top each other. there were all these unspoken rules, like it had to be outrageous and funny.
you're right about that attitude and the thing with online is, you don't know who that other person is really and often with that type, it's usually dead opposite. I mean you know at first glance there are horrendous personality disorders going on, and that's for starters. lack of respect for other's right's, boundary issues, other unfortunate personality traits.
I mean, I'm Catholic, I love Mary but I'm definitely a 'red words' type of Catholic.... like the Catholic Workers party type. (dorothy day hub if you want a peek) only thing I have trouble with regarding their philosophy is the pacifism. I'd like to, but I can't. Yet, anyway. I'm a fighter.
It's very hard to watch the emotionally disturbed bullying people on there and not stand up for them, because I'm quite the sucker for that, but I'm trying really hard not to. I wouldn't bet either way yet on me posting. I hate to watch people get victimized, especially by sick clicks.
You certainly caught my attention being the voice of reason on there.
Thanks. I appreciate that.
Mark very great information. My friend owns a real estate company. I've got her reading your related hubs; her comment is that even though some laws etc. differ here in Canada, your information is relevant here too.
great HUB regards Zsuzsy
Thank you. I am glad to hear it. I was thinking of doing an international version, but I am glad this applies in Canada too.
It sure is a buyers market and now is the time to get good deals if your a real estate investor.
Great advice.
look forward to more
Thanks.
Excellent! I knew some of this information was available but it’s hard to find. I often thought about buying one of those books you see on television but my gut kept me from buying because I wasn’t sure if it was a scam or not. You made it easy, great article with very helpful and sound advice. Thank you for writing this article.
hehe, thanks. I wouldn't call it a scam exactly, but the information IS free - If you know where to look.
so what's your opinion on BOA buying out Countrywide today?
btw I use realty trac to see all and also zillow shows some too. then go local from there...
My opinion is that the current "disaster" was carefully orchestrated. I have friends in the banking world and had been told this was coming more than three years ago. None of the big guys will take a big hit. At worst, they will get eaten by the bigger guys who will then write off the losses against tax.
as usual very informative
Totally agree with you Mark on the "Ochestrated Disaster" they always say the good times can never last in Real estate, i think to a certain extent however that statement was wrong, your article proves that there are still fortunes to be made in repossesions!
I really do believe people who invest in foreclosures are set to make a lot of money in the coming years!
hehe - You better start reading my stuff before you comment. This is the second comment you have made that tells me you are not.. Not as bad as the last one, but still....One more and I delete them all.
Great post mark. I sent this link to several friends interested in the subject. Nice work.
Mark,
Great article. We're loving the fact that you are pointing out the true economics of the foreclosure market. We've read several of your Hubs since joining a few days ago and find them very well written and easy to digest.
By the way, if how do you come up with such great insight into the US market living in France? Puzzling. :)
Thanks,
I am English, with an American wife. I lived in the US for some time. I have a maxim that I like to think I came up with myself:
"If you just remember your government thinks you are stupid.... It all makes sense."
Mark:
This is such a great article I linked to it in my Living Frugally in Los Angeles Hub. There's nothing like being able to tap into some useful knowledge.
thanks Liam.
I was just talking to my sister about foreclosures in NH and Maine a couple of nights ago and now I've found your hub, which is going to prove incredibly useful. It's amazing how dispersed all the federal information is.
Hey Mark,
One of my clients is a property investmernt professional. I create her marketing collateral and other promotional materials, so it always helps to get more information about this rapidly changing business. If you have time, please visit my Hub at starrwriter or visit my Web site at www.starrwriter.com. Thanks again for the great information.
Best regards,
Joe
My pleasure.
Oddly enough, I also write about that subject:
http://internationalpropertyinvestment.com/
http://blog.luxuryproperty.com/
Feel free to contact me through my profile. We might be able to do something together.
I actually subscribed to one of those listing services some time ago but was not in a position to act and cancelled the subscription. Thank you for the information. I am bookmarking your hub to refer to when I am in a position to buy a home.
Thanks
Wonderful hub! Extremely useful information for any property buyer. Right now is going to be really great opportunity to invest into property, because of the lowest prices.
We own over 100 properties and it is sad but we actually have families dropping off their keys at our office and walking away from their homes. We used to purchase many preforeclosures but have stopped as we can't handle any more. The market is very tight up here in Maine, lots of families moving South. Great article, I enjoyed it.
Wonderful hub ! I have invested in real estate very modestly over the years but hestitated to invest in foreclosures . Now anyone would make some money investing with the plummeting market. too bad so many people were hurt .
keep up the good work!
Thanks for sharing this information. As iam searching for house your hub provided me useful information and this hub is useful for those who are going to buy any property.
Thanks for the information. Now is a great time to buy a place. Great Hub.
Mark it is my view that based upon historical figures, if you buy a foreclosure in SoCal I believe you are paying about twice what houses should be worth, on average just under 200k.
I believe foreclosure sharks could one day be underwater in So Cal.
Realistically, average home prices should be approx 3 times average yearly salaries.
Pay appropriately. There is a a looooong way to go before we hit bottom yet.
Agreed. Good warning.
This is good post. Thanks you.
Do you know if dance lessons were previously available for barn dancing or was it taught by following steps? Are special shoes required?
Just curious -- thanks.
LOL - well. I took them :)
This is a good article and presentation. I really come to know where to find through your given informations. Thanx for that. You did a good job.
bookmarked - thanks, Mark! Any chance you might update this? Some of the links are broken - probably bank changes?
My pleasure dineane - thanks for reminding me. I will check all the links - usually I get a note that a link is broken, but I did not get one in this case. We will only have one bank soon anyway -
US Government bank Inc. :lol:
LOL - actually, I guess technically they were not broken (now I'm not sure if any were), but some went to completely empty listings or under contruction kind of messages....at least I think that's what I remember. The good ole US links worked fine ;-)
This is extremely useful! Thank you so much for sharing. I love your hubs, they are so information packed but not hard to follow. Thumbs up!
That's exactly it - "That doesn't mean there are no bargains to be found." Many potential investors are reeling from spending because of the media hype. Good info you've provided here. I'm into property auctions, which is why I found my way into your hub.
Great post. Foreclosures are a hot topic and it is good to see a well written artilce helping people find them.
Stephen
Great Hub. I find this to be the perfect time to invest in real estate. Many people tell me the market is to saturated with available property, and I will not be able to sell them. If you consider buying real estate at below wholesale you can offer prices back to the market lower than current. Or rent out lower than most because you purchased below current market price. Great Info!
Ricky Gaspard
Very well written hub .....
very much informative ......
Thank you very much for your great hub, for good advice, good wishes and support. Thanks for sharing your experience with all of us.
Another hit hub. Thanks for sharing.
Thanks for the hub, I recently recieved at text for information on hud homes. They wanted to sell their list to me. No thanks. Thanks for the information it was very helpful.
Always had a lack of knowledge regarding on how foreclosures work... Thanks for clarifying some of my doubts. Great Hub!
I know that foreclosure is a great way of doing good deals. You can have 30 to 40% off the house market value. This is a very interesting hub.
There is a 1 acre plot of land with an old abandoned home on it. I know it is in foreclosure but the bank refuses to talk to me about purchasing it. Does anyone know a way I can make an offer?
The Government Inc is paying the banks to keep these properties OFF the market. I hear the same story all the time. And they are sat on 22 million properties.
I can understand the need to sit on some of these properties in order not to totally flood the market. But if someone like Artemus wants to buy why not sell?
Great informative hub, enough to earn a link from my own site which seeks out only informative hubs which will help those seeking hard money lenders for foreclosure deals at:
Mark-
Great article. Lots of content. As a real estate agent, I enjoy working on REO properties as they are cut and dry. To the banks it is just a business decision, no emotional attachment to the property.
I hear so many stories these days of banks holding on because they don't want to show the loss.
Also, it seems like it isn't so cut and dry anymore and the bank may or may not actually own the property. It seems like investors are buying them in "blocks", but still using the bank to sell them.
Anyway, I believe patience is the game these days.
Driving through neighborhoods where you want to buy is another great way to find foreclosures.
You will find foreclosures and specifically HUD properties advertised on craigs list. Verify the email and phone # before you connect.
Great hub. I will probably be looking to buy a new home in about a year and it would seem very worthwhile to be able to check these listings before blindly plodding through the real estate quagmire. Thanks for the info.
hopefully you can help me how do i find the bank that owns a hud home or a forclosher home
Iðunn 4 years ago
my family is looking into a house for me so I'm going to direct them to your set of Hubs. My interests and yours seem to rarely coincide but you hit one of them this time and I'm glad because I'm enjoying you more and more all the time.
Thought I'd pop into this one to tell you so.
You said you had an interest in almost anything but synchronized swimming. I rather liked synchronized swimming. I remember it from the old Ester Williams musical oldies (film freak, remember?) and that bit from Funny Lady with Streisand.
If you can stomach the leftist pol and the Irish Nationalism, and the trad-punk music I do look foward to you wading into my Hubs if you get a mind to. I'm going to go through your homes Hubs and forward the links to my brother.
Excellent hub.