Find a recently foreclosed home

I've recently been following a home in my area. It was in the short sale process but has now finally been taken off the market and started the foreclosure process. I'd still be interested in the property. Is there anyway to pursue this?

Thanks,

Kristian Peter

Real Estate Consultant · San Diego, California

127 posts
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May 06 '11, 05:39 PM

Until the property goes to trustee/foreclosure sale, you can attempt to purchase it via the owner (short sale), otherwise you will probably have to wait until the property is auctioned at the courthouse, and the trustee either reduces the bid to an amount that you can purchase at and make money, or the property is purchased by the lender, in which case the property will be given to a Realtor to do a BPO, and eventually sell at market value, depending on the condition of the property, and the market conditions for real estate in your area.

CHAMPAK SHAH

· Stone Mountain, Georgia

229 posts
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May 08 '11, 04:59 AM

That was very good explanation Kris. DAN - If you are so much inetrested--you must have seen OR should have seen the property fom inside through a Short Sale listing agent - and should have good idea about the repairs cost and also must have done comps for the area. Now you can go to courthouse - and find lender and have one of your own attorney to call lender's loss mitigation department and offer to BUY the note at Discount -- make sure you do your numbers right. Also from court house search - you can find out the original loan amout, interest rate, tems and calculate current balance plus add six or eight monts payments - missed - check for any tax liens etc - Then you can foreclose and get the house- or do a work out plan with home owner to have better yield-

Aaron Mazzrillo

Wholesaler · Corona, California

330 posts
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May 08 '11, 05:20 AM

No idea what state you are in, but here in California I have been able to stop trustee sales up until the day before they go to auction. You will need the home owner's participation though. From your post, it doesn't sound like you know who owns the house. Only that you have been stalking it and not really making any effort to buy it.

Why this house? What is so special about it and what makes you want to buy it? Do you want to flip it, hold it, move into it? Do you have cash to buy it at the auction?

You need to post more info about the situation so people can have a better understanding of what you are attempting to do.

Dan Baker

Real Estate Investor

9 posts
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Jun 01 '11, 09:44 PM

Originally posted by Aaron Mazzrillo

No idea what state you are in, but here in California I have been able to stop trustee sales up until the day before they go to auction. You will need the home owner's participation though. From your post, it doesn't sound like you know who owns the house. Only that you have been stalking it and not really making any effort to buy it.

Why this house? What is so special about it and what makes you want to buy it? Do you want to flip it, hold it, move into it? Do you have cash to buy it at the auction?

You need to post more info about the situation so people can have a better understanding of what you are attempting to do.

Maryland

Waterfront home that I really like and think I can get a good value for. Don't have enough cash outright (only 25K available)....I'd hold onto it....also FYI it has structural damage (about 60K worth). I tried to buy this home last year but it fell through because of the damage found during the inspection. I kind of wrote it off (at the time it would have strapped me for cash). But I've got a promotion and am in a better spot now and recently found out this was going to foreclosure and wanted to know if there was any way I could pursue it.....

William D.

Homeowner · Connecticut

102 posts
2 awards
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Jun 01 '11, 11:38 PM

To add another layer of analysis, if the property does go REO as referenced above you could attempt to make an offer. Sometimes foreclosure actions are brought in the name of the servicer who will quitclaim the property to the investor for REO purposes. If the investor/servicer is a portfolio lender you may be able to make a direct offer to them or at least find out their intentions. They may say wait and talk to the real estate agent when it is listed but I have seen instances where offers were at least considered post-title vesting and pre-listing.

I would take a walk down to your county/town clerk's office and see if there is a quit-claim deed from servicer to investor.

Steve Babiak

Real Estate Investor · Audubon, Pennsylvania

4,267 posts
14 awards
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Jun 02 '11, 02:10 AM

Originally posted by Dan Baker

... Don't have enough cash outright (only 25K available)....I'd hold onto it....also FYI it has structural damage (about 60K worth). I tried to buy this home last year but it fell through because of the damage found during the inspection. ...

Let's see... If you bought this 100% financed for the purchase price, you still could not complete the needed repairs out of your own funds (based on the numbers that were posted). So you'd need a lender willing to fund both purchase AND repairs - sounds like that would need to be a hard money lender. But most HML want to only do near/short term lending (12 months or less), so you'd still have to figure out how to fund this in the long run (or you'd have to do it as a fix and flip, which the HML is more likely to consider).

Sounds like it could be tough to do without a funding partner. And then with a funding partner, you'd probably not be able to hold it unless that partner also wanted that ...

You have to be able to see the deal through all the way to the exit strategy BEFORE you embark on acquiring it.