| p>There are great opportunities for investors in the | | | | or distressed condition. It will be in the MLS again |
| Denver real estate market today. Bank owned homes | | | | shortly. |
| and short sales are often discounted much lower than | | | | 4. Property is not sellable due to a major problem. |
| well-maintained neighboring homes. | | | | These problems include: |
| Some Denver homebuyers want to find the elusive | | | | · Structural problems (settling foundation due to |
| "unlisted REO homes". Should you search for | | | | Bentonite soil in the Denver area) |
| distressed homes that aren't on the market? And how | | | | · Hazmat issues such as evidence of a meth |
| do you find them? | | | | lab |
| There are five primary reasons why a Lender owned | | | | · Clouded title issues |
| property in Denver is not in the MLS. Each of these | | | | 5. Ownership of REO is being transferred in bulk |
| reasons prevents the Lender from proceeding with an | | | | between lenders. Lenders won't pull one property out |
| MLS listing or a private sale: | | | | of a bulk transfer. |
| 1. Lender has not yet obtained Public Trustee Deed to | | | | Asset managers list properties with a Realtor® as |
| the property. The Deed is issued a few weeks after | | | | quickly as possible. Listing in the Denver MLS gives the |
| the Colorado foreclosure auction. In this interim period, | | | | Lender the broadest possible exposure, enabling the |
| a sale cannot take place. | | | | Lender to attract multiple interested parties. Asset |
| 2. Lender is conducting post acquisition inspections, | | | | managers know open market competition results in the |
| which includes securing the property against prior | | | | highest possible price given the property's condition and |
| owners, squatters and vandals. As soon as the lender | | | | location. |
| completes the inspections and obtains a market | | | | A knowledgeable Buyer's Agent will understand the |
| valuation, it will be assigned to a Realtor®. Asset | | | | REO process and will be able to guide you towards |
| managers will not deal directly with buyers, and they | | | | the best purchase of a bank owned property in |
| will not sell a recent acquisition before a market | | | | Denver. Then again, you might save thousands by |
| valuation has been performed. | | | | buying a traditional owner-occupied home that is in |
| 3. Listing has expired and Lender is transferring the | | | | excellent condition. It's always best to weigh the |
| listing to another Realtor®. Typically, there is one | | | | out-of-pocket cost of repairing a distressed property |
| reason for the property's failure to sell during the initial | | | | with the financed cost of purchasing a home in |
| listing period: It was overpriced given it's poor location | | | | premium condition. |