June 23, 2012 – A variety of media reports point to a huge and long-lasting wave of REO (real-estate-owned) properties that have been foreclosed on coming on the market soon.

If you’re interested in seeking that diamond-in-the-rough opportunity, as some of my clients are, there are several things to watch out for. What follow are just a few. Best to have me standing at your side guiding you each step of the way.

1. Ask yourself: is the property likely to be part of a large collection of foreclosures that will make the neighborhood an attractive place to live?

2. How much in the home has been stripped by the vacating owner? What will it take to replace and or repair it?

4. Can you at least meet the lender’s minimum bid? If that price is a lot more than two-thirds the local government’s appraisal, try to find out why. (I can help you with that.) If it’s a lot less than two-thirds, ask yourself why. That could signal a reason to walk away.

5. Check the paperwork on your bid.

- Are  you providing all the necessary documentation?

- Have you initial everywhere you’re supposed to?

- Have you provided proof of funds?

If the property you’re bidding on is an attractive one and you think there will be competing bids, the slightest snafu could kick you bid out of consideration.

Read more from the Friday, June 22, 2012 editions of The Wall Street Journal. If you’re not a subscriber, call me and I’ll clue you in to the rest of the story.

IMAGE CREDIT: Wikimedia Commons