Get ‘em before they’re gone!

CNBC Real Estate Reporter Diana Olick today reports that bank-owned foreclosures (also known as REOs) and short sales — both of which fall under the distressed real estate umbrella — accounted for nearly 50 percent of all home sales in Dec. 2010.

The 47 percent share is up from 44.5 percent in Nov. 2010.

Low interest rates, as well as delayed sales agreements that were finally pushed through after “robo-signing scandal” concerns were alleviated, are the primary reasons behind the major spike.

Thomas Popik of Campbell/Inside Mortgage Finance explains:

“There were signed purchase and sale agreements, and those closings were delayed until the paperwork was reviewed. The major servicers pulled from the market houses that had been listed, and buyers were found. Once those transactions went back on, then they closed, and that’s what bumped up these December statistics so much.”

Keep in mind that home sales are typically down during the holidays, which makes this news even more remarkable because real estate business was actually up 12.3 percent (seasonally adjusted) to close 2010.

To search foreclosed homes and short sale listings for sale in your area click here.

Be sure to hurry … the distressed real estate market is fast and furious. The best deals don’t last long!

Check out the graphic below, entitled “Expectations for Average House Prices:”

Consumer confidence and attitudes are often telling indicators for if, and when, markets will rebound, correct and/or continue on their current trajectories.

This is “good” news for potential buyers and investors — great real estate deals could possibly get better in the months ahead. Historically-low interest rates and other buyer-friendly conditions, however, could start retreating to so-called “normal” levels sooner rather than later.

For buyers looking to push their chips into the middle of the table at the right time, this is turning out to be like a game of chicken. When do you flinch and go “all in” on the house of your dreams?

Each case is different, so there probably isn’t s silver-bullet answer to the age-old question of when to buy. Keep in mind though, that the line is getting finer by the month. And when the correction comes, it will likely come hard and fast.

Don’t be the one on the outside, hanging onto your bag of chips and kicking yourself for not acting sooner. Watch your local market, sign up for our free property email alerts and stay on top of things as best you can.

It will likely payoff in the end … literally.

Stubborn distressed homeowners. Possible legal wrangling. Skeptical secondary post-flip buyers.

These are now all major concerns for cash-laden real estate investors who were snatching up foreclosed homes from banks, renovating and then re-selling them for profits several weeks later, according to CNN.com.

What happened?

Several major banks recently put the “freeze” on foreclosure sales to investigate improper “robo-signed” paperwork. There were legitimate concerns that homeowners were evicted carelessly and perhaps even fraudulently in assembly line-like fashion.

The good news is that the banks have began correcting their mistakes, which were overall relatively minor. The bad news is that it has freaked out investors, which were propping up an unstable housing market, and in the process, rehabbing community eyesores.

This about sums up the situation:

“Investors had been doing brisk business, buying distressed properties on the cheap, sprucing them up and flipping them. But now they are being far more cautious…. Whether the hype [of the foreclosure freeze] is to blame or not, the last thing the weak housing market needed was to shake the confidence of already nervous consumers.”

Ain’t that the truth.

The fact of the matter is that foreclosed homes for sale still represent tremendous short- and long-term savings. And there are countless bank-owned properties for sale — all with clean titles — available for 30 to 50 percent less than market value currently listed on Foreclosure.com right now.

But be warned: They sell fast — you need to hurry! Click here.

Buying Fannie Mae-owned homes just got easier.

The largest mortgage buyer/backer in the nation recently rolled out HomePath Online Offers, which gives real estate agents the power to submit bids on behalf of clients who are interested in buying foreclosed — also known as Real Estate-Owned (REO) — homes.

Buyers/investors in Orlando, Fla., San Diego, Calif., and Detroit, Mich., will be the first to test out the new program.

Jim Tiegen, Vice President of Fannie Mae’s REO regional offices, had this to say to DSNews.com about the innovation:

“HomePath Online Offers provides increased transparency and efficiency in the submission process for our real estate partners and prospective buyers. This online pilot is a critical step toward ensuring that all buyers have the same experience making offers and purchasing homes.”

To view foreclosed homes for sale from Fannie Mae you need to visit HomePath.com. For more information about how to submit offers online for properties you can watch an informational webinar about the process right here.

… because without sales of homes in distressed areas the “recovery in the housing market stops. It’s frozen,” according to White House Press Secretary Robert Gibbs.

He elaborates (via CNNMoney.com):

“That obviously can have — we believe and others believe — a very negative and detrimental impact to our economic recovery efforts and the housing markets in states that have been hardest hit.”

Of course, foreclosures are a last resort — loan modifications, short sales and all other rescue options should be exhausted before sending properties to the auction block. Additionally, the documentation process needs to be as accurate as possible, which is an issue that several major lenders are addressing right now during the “foreclosure freeze.”

Despite the “freeze” from some lenders, foreclosures are still for sale throughout the nation. And most of them are available to purchase for significantly less than market value.

The fact of the matter is that foreclosures need to happen “for there to be a full housing recovery” and because they are “an important part of ensuring longer-term stability in the market is to enable properties to be resold to families who can afford to purchase them.”

To search foreclosed homes for sale in your area right now click here.

Buyer beware!

It’s perhaps the most important nugget of advice as it relates to investing in and/or buying foreclosed homes.

What you see isn’t always what you get, especially when distressed properties hit the auction block. Whether it’s a structural problem that costs thousands to fix or an encumbrance on the title that is virtually not fixable, foreclosures are inherently risky investments.

The Strand family, which purchased a deed at a foreclosure auction earlier this year for $96,000 cash, found out the hard way.

From the San Francisco Chronicle:

“Apparently, unbeknownst to us, Wachovia sold us a worthless second mortgage that was part of a piggyback loan made to the” previous owners. Both loans were originated, signed and recorded on the same date. Rather than foreclose on both loans at the same time, Wachovia chose to foreclose, market and sell the worthless junior lien, purporting it to be the real property, which is what we purchased.”

That’s right, $96,000 on essentially, a worthless note. The first mortgage, which was worth about $298,000, was later reclaimed by the lender after it failed to sell at a separate auction.

The good news is that the Strand family and the lender “negotiated a confidential settlement.”

Nonetheless, the lesson is clear: Do your homework! Sure, there are loads of great deals hitting the auction block every day, but there are also a fair share of land mines that have the power to blow up your bank account.

To be safe rather than sorry, the report offers up these helpful tips for bargain hunters:

• Engage a real estate attorney and/or a professional investor.
• Hire a title company to make sure there are no liens.
• Observe some auctions before bidding.
• Research the property history at the county recorder’s office or subscription websites like RealtyTrac and ForeclosureRadar.
• Be prepared to pay cash.
• Understand that the property has no guarantees on title or condition.
• Consider buying a bank-owned property instead.

For more detailed information about buying foreclosed homes at auction we recommend that you also check out “Outsmart Experts at Foreclosure Auctions and Win!”

Good luck!

Real estate auction sales have climbed 10 percent year-over-year since 2000, according to CNNMoney.com report, and the numbers continue to rise (14 percent in the first quarter of 2010) as the housing inventory keeps piling up.

It’s a billion dollar business … $17 billion in 2007 alone, to be precise. And that figure, too, will likely rise soon if it hasn’t already.

That’s because auctioneers are holding two or more auctions per day throughout the nation to keep pace. REDC, which is among the biggest companies in the real estate auction space, is on pace to exceed 520 such sales in 2010 — a 50 percent increase compared to just last year.

What’s the reason for the staggering across-the-board increases?

Les Christie explains:

“The biggest auction advantage is speed, of course: From first marketing to closing can be less than 10 weeks … There is such a huge volume of REOs on the market — 92,000 homes were seized in April alone — that banks are anxious to turn the properties over quickly. Rather than waiting for the local housing market, they turn to auctioneers.”

To check out the homes for sale at upcoming foreclosure auctions near you click here (REDC) and here (RealtyBid).

One of the most daunting aspects of getting involved in distressed real estate is the misconception that you have to go it alone.

On the contrary, enlisting help from local professionals who have experience and “on the ground” knowledge can make your house hunt as profitable and painless as possible.

It just makes perfect sense … and cents.

Fortunately, there is a lot of help out there to see you through your distressed property purchases from start to finish.

And Foreclosure.com is the place to start.

In addition to free access to the best, as well as the most current and accurate distressed property listings in the United States, we also provide you with all the education and resources you need to get going.

These resources include community experts to help you pinpoint the best houses in your area. They also include reliable agents who can handle all aspects of your distressed property purchase.

To find a qualified agent in your area today, and to search our nationwide broker network, click here.

In addition, the May 2010 edition of Foreclosure.com’s free educational newsletter, “Investment Exchange,” is now available. Dubbed “Find an agent,” it’s all about helping you find the right agent so that you can snatch up that perfect property … before someone else does.

All you have to do is find some properties you think you might like and then pick up the phone or fire off an email to your local community expert.

It’s that simple. Just check out “Find an agent” today to learn more.

To find a qualified agent in your area today, and to search our nationwide broker network, click here.

So says Colorado Springs, Colo., real estate agent Shawn Jardine in a recent article from the Christian Science Monitor:

“It’s a feeding frenzy right now. On one property listed for $65,000, I had 15 offers. The best offer won at $20,000 over asking price.”

Wholesalers, which are basically investors with lots of money who can buy in bulk, are “snapping up” a healthy chunk of the best distressed property deals currently available on the market.

It’s common these days for wholesalers to swoop in and make all-cash offers, making it difficult for first-time homebuyers and other “small-time” investors to land their deals.

With the nationwide housing market riddled with bargains, and a volatile stock market, wholesalers are literally banking on the notion that the market will eventually rebound. Perhaps not to pre-collapse levels anytime soon, but nonetheless, it’s bound to happen.

When and where is still a huge question mark. In the meantime, opportunistic wholesalers have the ability to buy low now, renovate their homes (if necessary) and then hang onto them for however long it takes to rent or re-sell at later time for huge profits.

To beat wholeslaers, investors and other buyers to the punch, we always recommend that you consider our FREE email alerts. We send you the hottest deals in your area the moment they hit the market.

Timing is everything … now more than ever!

Another city, more happy homeowners.

REDC — one of the nation’s most reputable and successful real estate auction companies — unloaded more than three dozen homes this weekend at a foreclosure auction in Golden, Colo., according to CBS4Denver.com.

All in a day’s work for the auctioneer, which is among the best at getting distressed homes off the market and occupied at a remarkable rate, selling more than 13,000 properties so far this year worth about $675 million.

Impressive to say the least … and we’re not even at the half-way point of 2010.

It’s an efficient process that gets families into homes, eliminates vacancies and takes a financial burden off banks.

So it’s not surprising that all parties — and communities — embrace REDC wherever and whenever it rolls into a new town, says company spokesperson Brad Fields:

“It’s taking a process that is traditionally a little slower and being able to very quickly get buyers into the property and revitalize those neighborhoods and create homes. It’s a little bit different of a process, but one that buyers shouldn’t be afraid of.”

REDC allows buyers and/or their representatives to place bids in-person or online. The process is safe, easy, and compliant with all legal regulations.

To check out the homes for sale at the upcoming foreclosure auctions, as well as to see when REDC will be coming to a city near you, click here.