(Scroll down as the links are in red.)
Real estate investing is a great way to create a good amount of wealth. You will be able to create an income, no matter what the economy.You do not need a lot of money to be a successful real estate investor. There are a lot of deals that you can do with other people’s money. Private lenders will lend you their money if they think you are a good investment.
Housing expert Barbara Corcoran who sold her real estate company for $66 million in 2001 says with both real-estate prices and interest rates low she’s never seen a better time to purchase a home. She encourages buyers to snatch up a bargain or up-grade as real estate, while slow to unwind is fast to recover which can mean within the next 18 months we’ll make up most of the loss of the last four years.
Do all you can to learn in order to prove to gain knowledge. Use that knowledge of real estate investing, short sales, bulk reo sales and virtual real estate to become successful as a real estate investor. That knowledge will help convince lenders to lend to you. You can save yourself from financial difficulty by learning all you can about these deals.
With more foreclosures now than ever before this challenge has given rise to a huge new opportunity for alert real estate investors.
Foreclosures are at the heart of the Bulk REO business.
‘Pre-foreclosure’ period is between the formal beginning of the foreclosure process and the public auction.
Foreclosure is completed when the property is put up for auction. Ownership of the property is returned to the lender if the property is not sold at auction, and the property
is called ‘Real Estate Owned’ (REO).
REO properties are usually listed for sale with local real estate agents. Yet with increasing frequency, REO properties are being sold for pennies or dimes on the dollar. However, the purchase of a ‘package’ (or group) or REO properties is the trade-off for receiving such great prices.
REO investments have provided many successful investors a way to profitably capitalize on the U.S. recession.
Foreclosures, Pre-foreclosures in Oklahoma (Sheriff’s sales and Sheriff auctions)
Remember with free foreclosure sites you get what you pay for. Information found on most free websites is so old as to be useless. There are numerous companies that charge you for what they have collected from public records. Below will help you do a little research of the public information yourself.
NOD Notice of Default Ask recorder of deeds (Clerk/Registrar of Deeds Earline Wilson 918-596-5801 8:30-4:30) how you can find out about a list of notice of default when they first come in. You want to get the information BEFORE it gets to the sheriff’s list and try to work out a fair deal for both the homeowner and yourself. (The homeowner can ask their lender if they can do a short sale.)
PRE-FORECLOSURES (Prior to foreclosure.) This is the best time to buy as you can still use a Realtor.
Listings on the sheriff’s auction report include the lender’s contact information. Get in touch with the contact and arrange to see the property. Go to the sheriff’s office website or call the sheriff’s office you are interested in.
People used to think that this was the best time to buy as you could:
- Go in with a realtor -See if it is listed on the MLS: http://www.tulsarealtors.com/Default.aspx
- get a warranty
- have more time to get your money together
- have time to check out any liens, etc. Before bidding, you should check for any UCC and Mechanics liens along with the tax liens and encumbrances on the property as the county doesn’t do this automatically. It is your responsibility as a bidder or certificate holder. Check with both the County Treasurer 918-596-5071 and County Assessor Tulsa Assessor 918-596-5166 (Assessor may charge to check for lien.) to see if the property has a lien against it. You may wish to take this into consideration before bidding.
A title search on the property can tell you about the house such as if the owner still owes money on it from a second mortgage on the home or any outstanding lein on the house involving the current homeowner. (Failure to pay property or income taxes, the government could have a lien or claim against property…..which means the title will not be free and clear until all liens are paid — and if you buy it, you will be the one who owes it.)
Buying a pre-foreclosure can help the distressed homeowner as it will keep foreclosure off of their record but many times they will not sell it, foolishly thinking if they hold out it will bring more. Then they lose it and ruin their credit. It is while it is still in pre-foreclosure that the homeowner CAN ask their bank if they are willing to do a short sale. (In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank’s loss mitigation or workout department.)
TO SEE PRE-FORECLOSURES GO HERE
REMEMBER: The County Sheriff’s Department does not have access to any of the listed properties for viewing prior to the sale, nor are they aware if the property is currently occupied. For further information, contact the attorney listed.
Search Foreclosures and look at all of the listings. Put in your zip code.
Look at the number at the bottom that shows how many there are that are for sale.
If you can’t get in that way, go in this way:
Who it belongs to Tulsa County Land and Property Records
FORECLOSURE SALE (ACTUAL SALE ON THE COURTHOUSE STEPS IS THE WORST TIME TO BUY– No warranty, no inspection–and you may not have had time to check for liens
County Court House
500 S. Denver Avenue
Tulsa, OK 74103-3838
Phone: (918) 596-5000
As required by law, the opening bid on any property sold at Sheriff’s Sale (foreclosures) will be two-third’s of the appraised value.
Before bidding on any property you must know who is doing the foreclosing. There can be more than one loan on a property. But only one will be doing the foreclosing. Depending on the priority of the loan, it is possible for another loan to still be owed even if you win the bid.
When a property is foreclosed on all that is owed to that particular lender is added up at the time of the auction. This will be the mortgage that wasn’t paid, all the missed payments, all the late fees, the lawyer fees and any other costs in doing the foreclosure. This amount will be the opening bid. Understand that the bank is not really bidding against you (it’s an expression). Merely it is the starting point for the auction. If no one bids higher the bank foreclosing will get the property. They will then turn around and sell it to try and recover what they can.
If someone bids higher then they will get the winning bid. But what you need to watch out for are any other loans against the property. They may still have a claim against the house. You see, not just first mortgages foreclose. A home equity line or second mortgage could be doing the foreclosure. Any loan “higher” then these loans would be still against the property. What you want to make sure is that the loan doing the foreclosing is the first mortgage. This is considered the “primary” or highest loan. (The only exception, and a rare one, is an IRS/tax lien.)
If there is a second mortgage and the first is doing the foreclosing the second mortgage will have to decide if it wants to bid on the house. So you could have not only private parties bidding at an auction but other loan companies that are trying to protect their smaller loans against the property by trying to buy it to resell themselves.
Short answer long, you will want to check the title yourself or pay a professional to do so before bidding to make sure that there are no surprises.
POST FORECLOSURE AFTER THE SHERIFF SALE AND WHEN IT GOES BACK TO THE BANK—-THESE ARE CALLED “REAL ESTATE OWNED” (R.E.O.) aka bank owned. The bank will put it with a Realtor and yes, you can still get a warranty, an inspection, have time to get your money together. Usually all liens have been cleared by the bank.
They’re referred to on Web sites as “distressed property,” “recently reduced,” “short sales” and, finally, “foreclosed” or “foreclosures.
LITTLE KNOWN FACT BANKS DO NOT WANT YOU TO KNOW!! Don’t assume what the bank’s bottom line will be on price.
Many times since the homeowner being foreclosed on has paid thousands in interest already the bank may drop the price of the house just to get it off of their books! Remember they will look at each case individually.
- Don’t expect to get the mortgage financed from the bank doing the foreclosing. The people in the bank REO department are not loan officers — they handle bad-debt.
- Look at recent sales prices of comparable properties in the home’s area before you make a competitive offer. You have to know what the “comps” went for before you can know what to offer. If the comps in the same condition went for $200,000, you can’t assume they will knock off $15,000 off that price for paint, carpet and damage repair.
- Don’t expect to get a discount to compensate you for repairs — that’s not the way “as is” works. Ask if the bank has repaired the home or if it is being sold “as-is”. Most foreclosed houses are sold “as is” — just like used cars….well, abandoned used cars.
Before making an offer on an REO:
- Get a pre-approval letter from a lender showing how much money you’re qualified to borrow, based on the lender’s assessment of your credit score and income. The seller will want a lender’s “pre-approval letter” before taking your offer, and there usually is no room for negotiation. Good deals on bank-owned properties often go quickly and You might not have time to work out financing before someone else grabs it. Look here for mortgage rates in your area .
- Find a real estate broker who works directly for the lender owning the foreclosed home you want. Banks usually hire just one real estate broker to handle their REO properties. Real estate agencies often have long-term relationships with banks and know about properties yet to be listed. Ask about properties you’ve found and also for listings not yet in the database.
- Prove you’re serious about buying, right before or after meeting the agent, by meeting with the lender he or she works for.
- Pay for a title search even though banks usually waive any liens as it is a good way to check the property’s history and condition.
- Repairs are inevitable with foreclosed houses, so find area tradesmen to fix the damage. (Many Realtors have a list of ones their clients have used and with whom they have been satisfied.) Assume the air conditioning system will need fixing. In a fast-bidding, fast-closing situation, “as is” means they won’t let you in there for an EMP — electrical, mechanical and plumbing inspection — so you have to build repair costs into your best offer.
- Calculate the home’s market value, less needed repairs and purchase costs, which will give you your maximum offer. But offer a lower figure first, seeking to maximize your profit. Banks usually want to sell REOs quickly, so you can usually buy one at below-market value.
- How quickly are comparable houses selling? A 3,500-square-foot house with a pool in a gated community might sell in a few hours, while a more modest home might sit on the market for weeks or even months, depending on market conditions. If bank-owned property is selling swiftly in your area, instead of losing the house to a higher bidder and being upset when you still had another $5,000 you could go up, just bid the higher price to start.
NOW DO YOU WANT TO SEE SOME REO’S?
REMEMBER: many bank-owned REO homes are subject to periods of “redemption”, during which the original homeowner may buy back the home if they come up with the necessary money. Even though a home is listed as an REO, it may not be for sale until after the redemption period has ended. Check with the lender or local state laws to see how long the period of redemption will last.
More places to check for foreclosed and REO homes in Oklahoma areas
HomEq Servicing REO Properties
BEAL BANK Beal Bank
CITIBANK by county CitiMortgage.com : Citibank-owned Homes
COUNTRYWIDE IS NOW BANK OF AMERICA Properties Owned by Countrywide – REO Homes
HSBC Properties for Sale
National City Mortgage NCMCREO – Search for Properties
Regions Regions | Property For Sale
Wachovia REO Search Wachovia Owned Properties
WaMu (Washington Mutual) WaMu Bank-Owned Properties
This one may or may not have anything Capmark Financial Group
Some real estate agents specialize in foreclosures. A realtor knows what other homes in the area have recently sold for, which can help you have a better sense of the market in that area.
These were the REO realtors in 2008. You may wish to contact them direct:
1. Diana Wells Gotwals 744-4514 firstname.lastname@example.org (McGraw) REO SPECIALIST http://www.mcgrawdavissonstewart.com/photo/agents/423.htm
2. Stan Miller 682-5200 email@example.com (918)869-8686
4. Becky Drake 343-8230 firstname.lastname@example.org
5. Angela Denny 629-2437 Angeladenny@cox.net REO Specialists
6. Kris Fitgerald email@example.com 855-6576
7. Linda Todd Coldwell Banker RaderGroup 8990 S. Sheridan Tulsa, OK 74133 918-630-2165 Ext: (Tel) firstname.lastname@example.org (Linda Todd, Corporate Listing Specialist Five Star Professional Coldwell Banker Select www.tulsametroreo.com www.cbtulsa.com
8. Mary Carter Terry Gartside Realtors 1301 W Taft Sapulpa, OK 74066 918-224-5915 Ext: (Tel) email@example.com
9. Tom Alley Fidelity Realty Group 1612 S. Chestnut Ave. Broken Arrow, OK 74012 918-251-0447 Ext: (Tel) firstname.lastname@example.org
Check out Jean Mitchel, Richard Pier, and Troy Wilstea
CHECK THESE GOVERNMENT AGENCIES THAT HAVE TAKEN BACK HOMES-
1. FDIC Real Estate Owned http://www4.fdic.gov/DRRORE/
4. Sallie Mae Financial Services Properties http://www.grpcapital.com/properties/index.html
6. HUD (Multi family REO list) http://www.hud.gov/offices/hsg/mfh/pd/mfplist.cfm
8. SBA Properties http://app1.sba.gov/pfsales/dsp_search.html
9. Ocwen Financial Corporation http://www.ocwen.com/reo or http://www.ocwen.com/reo/home.cfm http://www.ocwen.com/reo/residential/reoproplist.cfm?statechosen=OK
10. USDA http://www.resales.usda.gov/
11. US Marshalls http://www.usdoj.gov/marshals/assets/nsl.htm
12. Department of Treasury http://www.treas.gov/auctions/treasury/rp/
14. Corp of Engineers http://www.sas.usace.army.mil/hapinv/haphomes.htm
Avoid Internet sites and subscription services that provide foreclosure information for a fee, since many have old information and are just out to take your money.
Completely free and decent Foreclosure sites:
List of Tulsa Area Banks you can call to check on the REO properties. (We do not know if they have any but you can certainly ask.):
American Bank and Trust 481-3000 American Bank and Trust Home Page
American Heritage (Sapulpa and small towns) www.ahb-ok.com
Arkansas Valley AVSB – More than a Bank – Broken Arrow, OK 259-2520
Arvest 307-1245 6011 S 89th E Ave
Banc of America Investments
BancFirst Welcome to BancFirst Online 664-6660
Bank of America 591-6865 6701 S Memorial
Bank of Commerce 270-2567 588-6010
Bank of Oklahoma http://www.bokproperties.com/realestate/
Bank of the West 664-2640 was Commercial Federal
Bank One 6125 S. Boston 382-5750
Bank South 492-2882 6130 E. 81
Bank South 492-2567
Chase 41 & Garnett or 66th and Sheridan 499-5500 http://mortgage.chase.com/pages/other/co_properties_landing.jsp
Citizen’s Bank 3353 E. 41
Citizen’s Bank of Oklahoma 712-4700
Citizen’s Security 250-7600 114th and Memorial or 71st and 129th
City National 31st and Garnett 624-1080
Commercial Federal (See Bank of the West)
Communication Federal 665-3760
Community Bank and Trust 582-6221
Everbank 743-0050 http://www.everbank.com/
F&M 748-4100 redirect to http://www.fmbanktulsa.com/home.asp
First BankCentre 258-4663
First Community Bank 252-9867
First Fidelity 728-6346 First Fidelity Bank: Home
First National Bank, BA 251-5371 http://www.fnbba.com
First United Bank www.firstunitedbank.com
Fourth National Bank 835-4400
Gold is now M&I
Grand Bank 4200 E. Skelly 491-9700
IBC Woodland Hills Mall 497-2812 http://www.ibc.com (broken link)
International Bank of Commerce
M&I 369-8585 http://www.mibank.com
MidFirst 299-2980 http://www.midfirst.com
NBC 7127 S. Riverside 499-5930
People’s 583-9800 Peoplesbank – English
RCB 5000 W. Kenosha 249-3000 RCB Bank: Welcome
Red Crown 477-3200
Security Bank 10727 E. 51 628-0101
Spirit 9618 S. Memorial (46th and Mem-Mingo?) SpiritBank | Oklahoma’s Bank – Home Page
State Farm 252-0455 Tim Jackson 877-734-2265 Insurance – Auto, Life, Home Owner, Health – State Farm
Stillwater National 523-3600 Stillwater National Bank
Summit Bank 481-8811
Superior 307 1245 6011 S. 89 E Ave
Triad Bank NA 254-1444
Tulsa National Bank 494-4884 Tulsa National Bank Welcomes You!
Tulsa Teacher’s Credit Union http://www.ttcu.com 749-8828
UMB 295-2000 1437 S. Boulder (Basement)
Union 56th and Lewis 712-1795 Union Bank of Chandler
Valley National 495-1700 VALLEY NATIONAL BANK
Wells Fargo 254-9086 https://www.wellsfargo.com/investing/more
Western Sun 362-1400 Western Sun Federal Credit Union
PLACES TO FIND FORECLOSURE AUCTIONS
- Check legal notices in the classified section in the local newspaper.
- The office of the recorder of deeds (in your county) (Clerk/Registrar of Deeds 918-596-5801)
Foreclosure Procedures (Oklahoma)
TYPE OF FORECLOSURE Primarily Judicial
MONTHS TO FORECLOSE MINIMUM/EXPECTED 4/7
DEFICIENCY JUDGMENT Possible and Practical
A deficiency judgment is when the house sells for less at foreclosure than what was owed, creating a deficiency for the difference between what they made on the sale and what was owed. The homeowner who was foreclosed on would still be responsible for paying the difference.
REDEMPTION PERIOD None
There are Workout Documents on that site to help those who are trying to save their home.
Oklahoma is a decent state for tax lien certificate and tax deed sales. Here is a summary of information for tax sales in Oklahoma Interest Rate County information can be hard to find, especially for smaller counties
Oklahoma tax deed sales bidding Process All tax lien auctions are by competitive bid.
About 14 states have a redemption period (a set timeframe when the old owner can buy back the house). (Does Oklahoma?) If not, once a property goes to auction the winner gets immediate ownership.
Most Oklahoma Tax Lien Auctions or sales are in October while Tax deed sales are in June. (This is subject to change.)
Be sure to read Smart Ways To Profit From Foreclosures: http://www.forbes.com/2008/06/17/smart-foreclosures-profit-forbeslife-cx_mw_0617foreclosures_slide.html?thisSpeed=15000
©1999-2010 A Winning Team. This work is protected in its entirety by copyright law, under the Federal Copyright Act of 1976. You may link to this site but no part may be copied without written permission of the author.
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