BiggerPockets

I have several houses that I want to buy that got foreclosed on Tuesday. I called the banks (Cite, Chase, etc) and they have all told me to go through a realtor once they assign them. Is there any way to buy them straight from the bank without the realtor auctions? I know there are alot of investors now buying in large bulk (10s of millions worth).

Your best shot is to locate and create a relationship with a brokerage/agent who consistantly has a supply of REO listings and have them get you the property details during the BPO approval phase. Once you have these relationships, you can get the property info, the bank approved BPO list price before the property hits the MLS and make your offer (preferably all cash) right then and there. I actually have the offer already written up and submitted to my agent while the bnak is in process of apporving their suggested BPO list price. Once apporved, my offer is subhmitted or adjusted then submitted befor ethe property hits the MLS.

In many areas, once the property hits the MLS (assumes the list price is well below market value) you are dead and can not compete with owner occupant buyers who are willing to pay full market value.

John,

I have been where you are. Unfortunately the answer provided by the other posters are correct - there is nothing to do.

We followed a particular property for over a year. We knew more about the particular property than even the owner. Here's the bullet points of the story: Deal was made with the owner. Then owner went bankrupt and judge froze the deal (before closing). The property ended up being lifted from the freeze for the purpose of foreclosure. After the sheriff's sale, we literally spent hours on the phone trying to buy from bank before it was listed - to no avail. The price ended up being way to high and we walked - a noob eventually bought the place and they are now in foreclosure.

One of the things that hasn't been said yet is to call the lawyer firm, the next day, who represented the bank at the sale and see if they would still be willing to sell it. I've heard from other investors of this working in my area. I don't buy at Sheriff Sales :-)

Nate-WI

Find out who the attorney was handling the foreclosure. Contact that individual directly and ask if they would be willing to get a hold of their contact at the bank and find out if the bank would be willing to do an "assignment" of the property to you and include how much you are willing to pay (this is usually not an negotiation so go in with your best offer). Most won't (especially the big banks). But some will depending on how much LTV is, current market sales, additional fees they are looking at etc. (basically additional time and money before they will have it off their hands)

If you get a yes back, contact a GOOD real estate attorney and have him draw up the assignment (speak with him/her first and get the correct name of the assignment form as this varies slightly in some states....and be SURE he knows EXACTLY which one you are referring to).

It also depends from state to state if there is a redemption period for the Deed of Trust or the Mortgage and which one the lien was. If there is a redemption period, you can have this done the day before the end of the redemption period, it's just a different form.

I will add to this by saying they will 99% of the time tell you their policy is to sell through the chosen agent. Banks are too large, too slow and too rigid to think 'outside the box'.

That said, some small local banks and some private/hard money lenders will sell you properties before and after they go to foreclosure from my experience. If you are calling countrywide to see if they will sell you an asset right after foreclosure you will get nowhere fast.

Be persistent, talk to as many people at the bank and see how far you can get.

I agree with the small lender comment. I've bought right after the sale subject to a holdover tenant which was a standard cash for keys.

but I imagine the only reason i was able to get it was their bpo was low. we only bought 15% below their planned listing price, and we sold it for 25% above their planned listing price.