BiggerPockets

foreclosure step by step-part 2

Friday, September 18

After a 12 hour travel day flying from Ft Myers to Cinci, to Seattle, to Spokane, I'm here! I inspected the house, 2 story with basement late last night.

The paperwork and investigation has all been done. The home is in saleable condition with only general cleaning needed. It has been listed at 225K but has not sold. It is located in a nice mid area of homes. The house next door has a real estate sign and also a sold rider on it. A home 5 doors down has a rent sign. Asking rent is $1400, a little high in my book.

I'll do a little more scouting on comps this morning. I expect to find this house easily saleable for 180-190 with just a fsbo sign in yard. I have a maximum target price of 120K. I expect this to sell quickly and will know whwther I have any chance when the second bid is made.

There is a first with US Bank. It is in the amount of 106K. There are additional fees owed of 6K, bringing the total to 112K. The problem or the good part(still tbd) is that Wells has a home equity loan in 2nd position for just under 90K. I know that Wells , like most banks, is so screwed up at present, that they may not be paying attention to this . That is my hope. If they bid to protect their second position, then this will be a short auction and wasted trip for me.

You never know how these deals are going to go. Even though I've been through a lot of these and have purchased, the day of the auction is exciting and nerve wracking. Will you get any deals? Any surprises? It always gives me an uneasiness in the pit of my stomach. I'm attempting to benefit from someone elses' misfortune and that is contrary to my inner core. Even though I had nothing to do with their failure, it is still rough when they are there watching.

I'll post results later in Part 3. I also expect to gain a perspective on values. activity etc in this area by attending this auction. Be back later. Rich in Spokane.

Comments

1. 

   Ted Harris Reply
   over 2 years ago

   good luck Rich - hope you get it!

2. 

   Will Barnard Reply
   over 2 years ago

   Looking forward to hearing how it went today Rich. Great speaking with you today as well.

   Will B - In sunny CA

3. Susan Reply
   over 2 years ago

   Rich,
   Try Drew Miles, google him, he can save or near eliminate your taxes! Now, my Q:, I have 4 houses in foreclosure as a lady called me yesterday, how do I know I have a deal? NEWBIE, yes, but want to do a wholesale-any suggestions, as some folks say assignments can no longer be done? Advice? Thanks in advance.

4. 

   Dennis Treacy Reply
   over 1 year ago

   Rich,

   Wells Fargo out bid me at auction, they bid $58k, later they sold me the same property through and REO agent for $50K.

   I like Wells Fargo, mainly for their timely incompetence.

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