$41,900 Minnesota REO Bargain
Minnesota Foreclosure and REO properties are showing up more prevalently around the state. While the Hutchinson MN real estate market has not been flooded like many other areas, I estimate we have slightly over ten-percent of our listings either in pre-foreclosure (short sales) or actual foreclosed. Typically, the process begins when a person becomes three to five months behind on the house payment and then the sheriff’s sale occurs. Once that happens, the delinquent borrower usually has six months during the statutory redemption period to make good on the past due loan. At the end of that six month redemption period if the borrowers have not come to terms with the bank, they are expected to move out. Banks contract with local real estate professionals to “watch” the property, that is, keep an eye on when the borrowers move out and then try to prevent frozen plumbing or other problems associated with vacant homes. Once the home is vacant, it will typically be re-keyed, winterized and prepared for sale. Banks hire Realtors to perform Broker Price Opinions on the bank owned property, and sometime additional professional appraisals are completed. Minnesota Real Estate Agents then typically are requested to place public utilities (water, sewer, electricity, gas) into their own names and pay to keep the homes heated during cold months. Once listed on the Minnesota Multiple Listing Service, we are able to have all agents preview and show the listings to clients. Often times banks will reduce their listing prices, or at least analyze them, every thirty to sixty days.
If this is happening with you, or if you’re concerned it may be happening soon, contact us confidentially to talk about options. I’m pleased to share with you that sometimes we are able to assist borrowers in workout programs between homeowners and their banks. Occasionally banks will negotiate loan restructuring, even changing the interest rate or other terms. We will help you and your bank determine if this is an option for you.
If you’re thinking of purchasing a Hutchinson MN forclosure there are numerous considerations to make. Contact us for guidance in some of the issues to watch for, and for other assistance. And by all means consider hiring a professional home inspector on these properties.
If you’d like to be set up on an automatic email for all foreclosed homes in our area, you may contact The HULS Team. Timing is AWESOME for buying an investment property. Interest rates AND home prices are at all-time lows. If you’ve ever considered buying a rental property we can help you find financing and assist in calculating your ROI.
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