Newspaper article THE JOURNAL RECORD

Sifting through the Risk: Experts Offer Tips for Buying Foreclosed Property

Newspaper article THE JOURNAL RECORD

Sifting through the Risk: Experts Offer Tips for Buying Foreclosed Property

Article excerpt

Purchasing foreclosed property, whether as an investment or personal use, could come with some risks in order to reap the rewards. For people considering purchasing foreclosed commercial property, some market insiders offered tips to help complete the property transaction smoothly.

1. Be patient

Mike Marrara, vice president and multifamily specialist at Tulsa- based First Commercial Real Estate Services Corp., has worked on several sales involving foreclosed multifamily housing.

"The thing we see most often is they're not necessarily foreclosed yet," he said. "They're in receivership."

He said sometimes banks do not know what they will do with the property, so it might not be foreclosed. Even if a bank figures out that it wants to sell the property, it will likely hold out for the best offer.

"Be prepared for frustration," he said. "It's all about being in the right place at the right time."

2. Make relationships with local bankers

To help avoid some frustration, Marrara said creating personal relationships with bankers can be helpful. He said some local bankers will even contact a broker or real estate agent in order to get their opinion on the property.

"The guys that get single-family homes usually have good relationships with local banks," he said. "Relationships with local banks are a good way to find those properties that you'll be able to make a deal on."

3. Don't underestimate the value of a broker or attorney

Randy Stafford, senior vice president of commercial property at Prosperity Bank, said a broker can help a possible buyer understand the property's challenges, and whether it may be worth the investment. He said brokers constantly study the market and can see when a property may be heading toward foreclosure. Attorney Jeff Tate, member at Mulinix, Ogden, Hall, and Ludlam PLLC, said an attorney will be able to see legal requirements a buyer may miss in the deal process. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.