If you want to buy foreclosed homes, JPMorgan Chase & Co. may have a deal for you. The bank has trillions of dollars in assets.
JPMorgan Chase & Co. is (as of this writing) the nation’s largest bank. It has assets surpassing $2.5 trillion. Given its size and scope relative to the nation’s financial sector, it's not surprising that among its many assets are inventories of foreclosed homes. If you want to buy foreclosed homes, JPMorgan Chase & Co. may actually have a have a deal for you. Because foreclosure purchases are different than other real estate transactions, it is essential that you understand the requirements and processes involved before embarking on the endeavor.
Special considerations for foreclosed home purchases
Shopping for foreclosed homes involves a different set of circumstances and considerations from traditional home shopping. Many foreclosed homes may be in a state of disrepair due to being vacant for extended periods of time or because individuals in financial situations that force foreclosure don't always have the resources (or incentives) to keep the property properly maintained. You probably won't be able to negotiate for repairs to a foreclosed home as a condition of purchase as you would with a traditional home purchase. Nearly all foreclosed homes are sold in as-is condition. Your offer should reflect the cost of any needed or anticipated repairs and any substantial replacements that may be required.
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Most banks aren't going to negotiate with you or accept an offer much below asking price for a foreclosed home. While larger banks may present unique, bureaucratic challenges in the process of finding and making offers on foreclosed properties, you may actually have your best chances of negotiating a better price with a larger bank (like JPMorgan Chase & Co.) since they have so many foreclosed assets on the books weighing down financial performance. Smaller banks, local banks or even credit unions may be less inclined to negotiate for fear of taking a loss. Smaller banks may also be under less pressure to move foreclosed assets from the books. In all cases, most foreclosed homes are already priced to move, so you should be able to find a good deal.
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Preparing to Buy a Foreclosed Property
According to most experts, the first step in any real estate purchase is obtaining pre-approval from a lender. Most lenders selling foreclosed or real estate owned (REO) properties require you to have a pre-approval letter when you submit an offer. If you’re purchasing foreclosed properties in an auction setting, you will almost always have to have cash available to make a purchase (or be able to show to can access the cash in a very limited period of time.).
An experienced broker can identify the best lenders and loans for your situation. Dealing with a broker with numerous contacts in the industry saves you the time of applying with multiple loan companies or banks. Brokers may also have inside information regarding foreclosed properties, especially if the broker specializes in that market. To learn more about selecting a mortgage broker, read this article.
For your next step, locate a real estate agent who specializes in foreclosed properties. When you buy foreclosed homes, JPMorgan Chase & Co. and other large banks will often rely on local agents to represent the interests they have in the foreclosed properties you may be pursuing. Even if the bank doesn't have a contracted representative, it may have relationships with agents and those agents will more in-depth knowledge of the available homes in your area. In some cases, these agents may be privy to homes that aren't yet publicly listed. Reply! can help you find an agent in your area.
You can take additional steps toward ensuring that you get a good deal by hiring a professional appraiser and/or a home inspector to provide a true market value of the home of interest and a report on its condition. Since nearly all foreclosed properties are sold on an as-is basis, an inspection can be critical to understanding just what you’re getting yourself into before you start the buying process.
Having a real estate attorney review closing paperwork is also a good idea. (In some cases, you may also be able to get some valuable information by having the appropriate title company issue you an in-depth report on the status of the property and its history. The County Assessor may also have information you can use to assess whether the foreclosed properties you are considering are even worth the effort.)
Some JPMorgan Chase & Co. specifics
Like most big banks, JPMorgan Chase & Co. has an easy-to-navigate site where you can find current foreclosed property listings, nationally and in your area. You can also plug-in the address of a property you may be interested in to see if indeed the bank has an interest in it.
If a property at a specific address does not appear when you plug it in, it means that the property is not currently available for sale through the bank. (If the property's foreclosure sale was held recently, the property address may show up in the list of "soon to be available" properties you can find at the bank’s website.)
Due to privacy issues, JPMorgan Chase & Co. does not provide lists of properties that are currently in the foreclosure process. The foreclosure process can move quickly (depending on your community) so if you’re truly interested in finding foreclosed properties available for sale, you will want to check this and other sites on a regular basis.
Not exclusive listings
One thing to be aware of when you are reviewing foreclosed properties on the JPMorgan Chase & Co. website. Those properties may also be listed as available on other websites and are certainly available on the sites and listings of numerous real estate agents in the area. The bank lists its foreclosed and REO properties with local real estate agents who then, typically, register them on their state or local Multiple Listing Service (MLS).
Any and all information about JPMorgan Chase & Co.’s foreclosed and a REO property is available to all real estate agents and websites that display properties from the MLS. As with nearly all property prospects, a local real estate agent is your best source for information about any property you may be interested in. (This can be especially true of foreclosed properties as finding the original or even last owner may be a daunting challenge.)
A few more details
While it may be difficult to find properties in pre or mid-foreclosure, if you do, you should understand that JPMorgan Chase & Co. (like all major banks) cannot accept an offer on such a property until the foreclosure has been completed and the title has been transferred. You can, however, present pre-foreclosure offers to the owner of the property. If the offer is for less than the amount owed, this is referred to as a "short-sale" and will require the bank’s approval. Your real estate agent should be able to work with you and help you present an offer to the owner.
You can schedule inspections on the property once your offer is accepted. The inspections will be at your expense and should be scheduled through the listing agent.
JPMorgan Chase & Co. may conduct Bulk Sales from time to time. If you are an investor and are interested in being added to a list of potential Bulk Sale Purchasers, please send an email with your contact information to GM.BULK.PURCHASES@CHASE.COM
JPMorgan Chase & Co. may offer special financing for certain properties it has listed in its foreclosed or REO properties. Be sure you ask the mortgage-lending representative at your local bank branch for further details about financing options.
Be patient!
The amount of paperwork involved in a foreclosed home purchase can extend the process. Don't get impatient. Take time to understand every step. When you buy foreclosed homes, JPMorgan Chase & Co. can offer numerous options, but don't limit yourself to purchasing from a single bank. Being flexible is the best way to get a great deal. To get foreclosure listings from other banks and government agencies, click here for an article with the website links.
If you want to buy a foreclosed home owned by the government, check out our guide on buying HUD homes. The U.S. Department of Housing and Urban Development (HUD) has hundreds of thousands of REO properties listed online.