Bank REO before MLS

Not sure if this is the only way, but try forging a relationship with an attorney that handles the various foreclosure procedures for a bank. They are working on these as the whole process progresses. I was able to do make a contact like this, and basically could have offered to buy the bank's note as the foreclosure went along, with this attorney as a liason. This is way before the the property is put on the MLS, or you could wait until they get up to that point.

I didn't wind up going forward with it, but if I did I would have had the same attorney continue with the foreclosure process. Depending on where they are in the process will determine how much of a discount you can get.

Edited: 06/26/2010 at 05:58AM

Lance Jackson

Foreclosure Specialist · Huntington Beach, CA

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Sep 21 '08, 11:33 PM

Another possible way is to go to the Auctions. If the property doesn't sell at auction, it's going back to the bank (here in CA), get on the phone that next morning and work the deal before they have time to list it on the MLS.

Edited: 06/26/2010 at 05:58AM

Kristian Peter

Real Estate Consultant · San Diego, California

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Sep 22 '08, 01:08 AM

I'm asuming that you want to negotiate directly with the lender in order to get a better purchase price, or get your offer accepted prior to anyone else getting a chance to make an offer on the property?

Typically the lender will not look at offers before the property goes into the MLS - most wait a minimum time after the property is marketed before they review any offers. Almost all lenders have their properties marketed through a Realtor, and pay a commission. If you know who the lender is, then you can probably find out who the agent is going to be, either by contacting the lender directly, or looking at other properties in the area that are owned by that lender, and which Realtor is marketing those properties.

It may be the most beneficial to forge a relationship with the top REO agent in the area, as they will know which properties will be on the market, and willhave more insight into properties that are pre-marketed.

Edited: 06/26/2010 at 05:58AM

Mark Brian

Real Estate Agent · Anderson, South Carolina

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Sep 22 '08, 03:49 AM

Nothing banks do regarding REO seems to make sense. Local attorney just told me this story:

Attorney handles many banks foreclosure proceedings. He also has a client trying to buy a property as a short sale. Bank/Asset Mgr will not respond to them, even though this attorney works with this bank on foreclosures. So they give up. 2 months later the home comes up at the foreclosure auction and the attorney client buys it for less than what he offered as a short sale.

I see the banks pay for example $100K at the auction, then it hits the MLS a month or 2 later for $50K. I do not understand this unless it has to do with some legal/tax mumbo jumbo regarding when they can take the loss.

Edited: 06/26/2010 at 05:58AM

Alex Locklear

Real Estate Investor · Raleigh, North Carolina

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Jun 13 '09, 02:53 PM

Does anyone know how to pick up REO's before they hit the MLS?? Is it true that one must wait until it goes to MLS to put in an offer?

Edited: 06/26/2010 at 08:34AM

Anson Young

Real Estate Investor · Denver, Colorado

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Jun 22 '09, 09:18 AM

Originally posted by Alex Locklear

Does anyone know how to pick up REO's before they hit the MLS?? Is it true that one must wait until it goes to MLS to put in an offer?

I have never seen it work. If you do get ahold of the actual Asset manager, and arent told to jump in a lake just getting them on the phone, they will refer you back to the listing agent. They hire us (listing agents) so they dont have to talk to you directly. Some of our banks wont look at offers until they have been listed for 72 hours, none will look at offers before listed (a few exceptions, but overall, no).

Edited: 06/26/2010 at 08:41AM

Scott M.

Real Estate Investor · Rochester Hills, Michigan

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Jun 22 '09, 12:51 PM

You can waste a lot time on this or you can actually do real estate :)

Banks are not going to talk to you unless your a HUGE player and even then you would be buying on QCD - the fact your asking this question tells us your not a huge player - and when I say HUGE player like your one of 10 people in the country who can do this.

Auctions are your best bet or pre-foreclosures lists but your not really going to be chatting with the banks much.

You can try to create a relationship (which means buying from them over and over) with a broker who handles them. I get calls all the time with stuff before it hits the MLS from brokers who I work with but that is after a 10 year track record. Still - no calls from a bank though :)

Edited: 06/26/2010 at 08:42AM

Paul Cordero

· Scottsdale, Arizona

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Jun 24 '09, 08:05 AM

Banks need to do due dillegence on their properties after fcl sale in order to know how to mkt them, especially if they are clear across the country. Agents are our eyes and ears for the local mkts. The bank doesn't know if they are getting a good offer from you until they have done their valuations. If for some reason you find an in to purchase directly, expect to pay more because all the bank will have to go by is the fcl sale bid, or unpaid balance.

Edited: 06/26/2010 at 08:43AM