Prospect of a foreclosure - Quicken loans and Five Star bank

2 Replies

I am eyeing a good-looking property that the family moved out of for almost a year.

I've emailed back and forth with law office representing bank during the foreclosure (taking forever due to court delays).  The bank involved is Quicken and Five-Star bank.  I am wondering about trying the short sale approach to the former owner (remember they moved out) as she was worried about being removed from the home during the foreclosure proceedings and wanted to move on with her life.  

What does Quicken & Five Star (which one owns it? quicken is just a servicer right?) typically do with their nonperforming assets?  courthouse sale?   Would I be better off having a real estate attorney approach homeowner about a short sale?  

This would be my fourth purchase, the other three were from courthouse sales.

@Edward R. Contact the home owner and ask if they would prefer to take control of this situation or keep wallowing. They already moved out, and they are still liable. They need title to transfer to bank or someone else to clear them from potential liability. All kinds of bad stull happens in abandoned houses. Put it under contract.

@Edward R. First.... You have to make a deal with the owner, they still own it, the bank only has a mtg.  Second, you have to convince the bank to 1) delay the foreclosure 2) agree to the short sale.  There’s more to it than that (the seller has fill out all the docs, cooperate, the property will likely have to be listed in the mls for at least a week, etc., you need someone that will actually do the day to day communication/negotiation with the bank).

If there is any equity, which would eliminate a short sale, the bank has no incentive to delay the foreclosure as they will likely collect the full debt.