Can’t I just pay what was owed on the foreclosed loan?
Who pays for your services, and what will it cost?
Why shouldn't I just deal with the bank's listing agent direct?
All these listings emphasize As-Is. What will they repair?
Why are some specifying a pre-qual from a specified lender?
Why are there just few crummy photos, or just one?
Q. Can’t I just pay what was owed on the foreclosed loan?
No. These homes were auctioned on the courthouse steps already, and nobody bought them, so the banks have taken them back. Now they own them outright, and the original loan has vanished. They just want to get rid of them at lowest possible loss to them. It's all about loss mitigation.
Q. Who pays for your services, and what will it cost?
Our services cost you nothing directly. We are paid from a share of the commission paid to the listing agent by the bank at close of escrow. That commission was negotiated between the listing agent and the bank, and is separate from the buyer's purchase contract. Ultimately, if you buy, we will be paid with some of the money you paid for the house, but it is money that went to the bank to buy the house. This is sometimes a bit hard for some folks to understand clearly, and if you are one of those folks, call us and we can try to explain it more clearly. (530) 244 7603
Q. Why shouldn’t I deal with the bank’s listing agent directly?
Let me put it this way:
You feel lucky?
Well do ya?
If you’re feeling lucky, you can go ahead and contact the listing agent directly, and have them represent you while you consider buying a bank-owned property.
The listing agent represented the bank’s interests first. When they are offering you their expertise and representation, whose interests will be primary? Yours? They might sell you something once. The bank? Remember, they represented the bank first as listing agents, before they met you. And they hope to represent that bank or institution again and again and again, for millions in sales. Whose best interests are going to be more important to them? Yours, or the banks? They’re only human.
Representing the buyer and the seller in a transaction is legal in California, but not in some other states. It’s called double ending, in the jargon of agents, and typically for sellers of bank-owned properties it means they can more than double their commission. Say that again, out loud, “more than double.” That’s a big incentive indeed. Unfortunately, there is a rather large potential for conflict of interest every time it takes place. How will they behave, those listing agents? Will they answer all your questions honestly, work hard on your behalf, or just try really hard to sell you on the property? I suppose it might work out OK. But, as I mentioned, they’re only human.
I’ll ask it again
Do you feel lucky?
Buying bank-owned properties calls for a higher level of agent awareness to properly represent a buyer. The bank sure isn’t going to tell you much about what you might be getting yourself into. And legally, they are not expected to know very much about the specifics, either. Still, there are some good deals out there. If you’d rather rely on skill and experience over blind luck to separate the good deals from the bad, you should call us. We have represented buyers and sellers of bank-owned properties in Shasta and Tehama county for years, and we know our trade extremely well.
When we represent you as a buyer, we represent ONLY YOU, and we quite frankly don’t give a rat’s behind about the bank’s interests. We always put your interests first.
Q. All these listings emphasize As-Is. What will they repair?
Well they all say that, don't they? One thing we know, in real estate, EVERYTHING is negotiable. Certain things in particular, they will have a great deal of trouble in saying no. We can help you negotiate your needs.
A letter of pre-qualification must accompany any offer. You need to get this vital document before you go shopping. If you don't have a lender, we know several good ones you can pick from. If you have cash, you're golden. Banks love cash offers.
Q. Why are some specifying a pre-qual from a specified lender?
Yeah well this seems pretty fishy to us. What we suspect is that the lender wants a crack at selling you on their products. Is the lender a friend of the listing agent? Did the seller make that requirement directly? Is it legal? Lots of questions, few answers. Probably, it's an annoyance only, and mostly harmless. We monitor their requests on a case by case basis.
Q. Why are there just few crummy photos, or just one?
Good question. Here at FDotD we find ourselves asking that question nearly every day as we ponder another craptastic photo job, and marketing description. So here's a bank, or some other institution, GIVING you a house to sell, for pete's sake, and this is the best you can do?
If we were skeptical, we might deduce that the listing agents don't really want it to sell from the MLS at all. They would prefer to Double End it, representing both buyer and seller. And so they market it low key, and in-house, and more or less clandestinely. Doing the minimum to satisfy the requirement that they actually try to get other cooperating agents to bring buyers. Shh, don't tell.
If we were cynical, we might surmise that some listing agents are lazy and greedy, and since banks are stupid, it doesn't matter that they don't try very hard or expend much effort. We do know banks can be stupid from direct experience. Witness their required massive federal bailout. Despite the evidence, it may be that all banks are actually run by geniuses. But at the foreclosure level, it's run by overworked clerks in cubicles, their desks piled high with unfinished paperwork. They don't seem to care that their million dollar asset is being marketed with one lousy photo and a sentence denying any knowledge of the property. Surely you have noticed that in this world, there is no shortage of laziness, greed, or stupidity.
This is a frequently asked question, but unfortunately we have no good answer.