Buying Foreclosures in Metro, Denver Colorado

So you want to get a good deal, maybe even a steal on a property in the Denver Metro area?
A Foreclosure can be a good way to go. However there are many different types and stages of
Foreclosures.
 

Stage 1, Short Sale: The home owner is upside down in their property and/or behind in payments
and needs to get out, this is not a Foreclosure but commonly known as a "Short Sale".
The home owner and their Realtor try to negotiate with the lender to take a loss so they can sell.
 Generally the bank will not even negotiate until the seller has a legitimate offer. Then it's a waiting
game,  1 -3 weeks before you hear back. The bank could say yes or no or not that low. The
Realtor nor the Seller have control over the deal whatsoever.

RECOMMENDATION: Stay away from Short Sales unless you absolutely have to have that home.

Stage 2, Pre-Foreclosure: Home owner receives notice they are in default and the clock starts ticking
for 110-125 days before it goes to "Sale" or is actually Foreclosed on. The notice is also public
information so many investment groups, Realtors, lenders and scam artists start contact these people.
Each person is trying to strike a deal. Realtors want to list it, Lenders want to do a bail out loan, investors
want to buy it for cheap and either sell or rent it back to the owner. This is a stage only an experienced
investor with money should attempt. Not to mention they have just passed new laws to keep owners from
being taken advantage of, especially by those who pretend to want to "help" the home owner while
"helping " themselves.

RECOMMENDATION: Stay away from Pre-Foreclosure unless you are very experienced.

Stage 3, Foreclosure: If the owner has not been able to sell their home or refinance since the notice of
default, they will eventually lose it at the public trustee sale. On that day generally the bank shows up
and buys the home for how much they're owed (the loan balance). Others may also try and buy out the
bank. If a home has equity it would be odd that it they haven't been able to sell or refinance it already.
However some good deals slip though. The catch is that you have to have 100% cash to buy it! You
cannot get a loan, you must have certified funds the day of the sale. Since the bank is not taking any
losses this day it could be better to wait.

RECOMMENDATION: Foreclosure sales are great if you're rich.

Stage 4, REO: All of the Foreclosures end up listed on the MLS or Realtor listing service. However
they first filter through the Bank's REO department. Real Estate Owned. Generally they are trying
to sort things out to get them listed. Generally they do not sell to the public unless you are a major
player. It could take a long time to even get in with them before they'll actually give you the time of day.

RECOMMENDATION: REO's great if your last name is Trump.

Stage 4, Bank Owned: The Bank lists their properties for sale with a Realtor. The listing generally states,
Lender or Bank Owned. At least you know you can negotiate with the bank and get an answer. It can take
some time. They are not in a hurry. The hard part is lots of investors and Realtors are constantly combing
the MLS for new bank owned properties.  When there is a good deal it goes fast and gets many offers. Study
your market and you'll know when a good deal hits. By watching all the bank owned properties that come
up for sale, you'll get a good feeling when to jump. The reality is no one knows the banks bottom line until
you make an offer.

RECOMMENDATION: Bank Owned Listings great for most buyers and investors.
 

What now? First you should always get pre-approved whether a personal home buyer or an investor.
Banks want to see a strong pre-approval letter. Click here for our instant online approval letter.

Next start searching and studying the market. I've made it easy to start searching foreclosures.
Below is a link for Metro Denver Currently Listed Foreclosures searches. However you should log
in and create you own account so you can customize the search for your Colorado. This way you can
get daily email alerts with all the new foreclosure listings!