Anatomy Of A Foreclosure – Part 1 – How to Evaluate a Home Prior to Auction

Jason — Mon, 09 Dec 2019 00:22:01 +0000

The Business of Foreclosure - A Starter Guide

The analysis and brokerage of distressed properties and homes in foreclosure has become a regular and significant part of our business. We are regularly asked to describe the process of identifying and acquiring luxury real estate via foreclosure auction and from bank and non-bank financial institution portfolios.

As discussed in our previous post, Foreclosed Homes and Luxury Real Estate, the availability of distressed assets (homes, condos, multi-family, vacant land, commercial property) exists in the luxury real estate category across virtually all high income neighborhoods in Los Angeles, including Beverly Hills, Bel Air, West Hollywood, and Malibu.

Distressed Opportunities in Luxury Real Estate

Home buyers and investors alike are often surprised that high-end and specialty homes frequently fall into the distressed category. Yet, upon reflection, it makes sense. The high-end category includes speculators, investors and traditional home owners.

With speculation and investment, there are wins and loses; with homeownership, families are subject to the business cycle. Thus, some percentage of overall inventory will inevitably fall into the distressed category.

With proper preparation and the assistance of a skilled agent, value can be realized through the purchase of these luxury properties at foreclosure auction or from financial institutions and lenders as ‘REO’s or Real Estate Owned”.

How is this accomplished and the preparatory work required is the subject of the balance of this article. We welcome your questions and confidential inquiries.

Pre-Auction Foreclosure Preparation - Hire A Realtor?

A rather significant amount of time is necessary to locate, analyze, bid, and hopefully acquire a distressed property. With sufficient time allocated to investigation, a focused and diligent individual can acquire the knowledge base and complete the work themselves. Yet, one should not underestimate the time commitment required nor ignore the existence of unknown unknowns.

It is our hope that upon reading this article and after reviewing the scope of work involved, you will choose to engage your consulting services to help you identify, analyze, and purchase distressed and foreclosed real estate assets.

In fact, even industry professionals with significant category experience and resources choose to hire us. They have found it a better use of their time to rely on our focused work to supplement their already substantial knowledge base. There is a lot of leg work involved and they are willing to pay for it. We hope you will too.

In the next section, we will briefly outline our method of foreclosure analysis:

Foreclosure Work Flow Checklist

Foreclosure and Bank Owned Advice and Guidance - Work With Us

Tom Levine, Realtor and real estate agent, is Managing Partner at Native Angelino Real Estate. He provides analytics, advice and referrals to legal and tax professionals. He utilizes publicly available information, as well as, private data sources to evaluate distressed real estate assets. If you would like to discuss purchase of an encumbered asset for primary residence or investment purposes, please do not hesitate to phone or email. For further information, please contact us here.

Tom Levine has earned the Short Sales and Foreclosure Resource Certification From the National Association of Realtors. He has an MBA-Finance from USC Marshall School of Business and decades of experience in capital markets.