Investor · Colorado Springs CO · Member since 2014 · 535 posts · 253 votes
We own a few rentals already (we've only bought from the MLS), and have been looking to branch out more. We found a property that had been listed for sale and then pulled off the MLS repeatedly for years, with gradually lowering prices. We were going to have a real estate agent contact the owner to see if they're still looking to sell, get all their property info, etc., but it just recently got foreclosed!
We'd still be interested in the property, but I don't know anything about trying to buy a foreclosed property. Would we have our agent find out who the lender is who foreclosed on it, then contact them to see about buying it? Would it be better to contact the lender directly ourselves rather than our agent (I wouldn't know what to say)? How would this process work?
I'm sure there are lots of smart people here who have been through this before, looking for some great advice. Thanks!
When you say "it got foreclosed", I assume that it already went through the auction process at the court-house steps (or sheriff's sale). If so, the bank now owns it. Unless the bank is a small, local bank you will most likely have to wait until they list it with a Realtor. If it's a small, local bank you may have some success going directly to the bank.
When you say "it got foreclosed", I assume that it already went through the auction process at the court-house steps (or sheriff's sale). If so, the bank now owns it. Unless the bank is a small, local bank you will most likely have to wait until they list it with a Realtor. If it's a small, local bank you may have some success going directly to the bank.
Thanks Bryan. Yes, I'm assuming it already went through that. I just looked it up on zillow, and zillow lists it as having been foreclosed a couple weeks ago. I admittedly don't know that much about the foreclosure process, or how to find out who the bank is. I'm used to more traditional sales, so this is new to me.
Don't rely on Zillow, or any other general site. Look it up yourself on the county records. If you don't have an idea of the outstanding mtg balance, and junior liens, you're just spinning your wheels pre auction. Then of course, you need a willing seller/owner.
There are many options before the foreclosure sale, and some options after the sale (depending on judicial vs. non-judicial) that involve working with the owner directly. Once the redemption period has expired (judicial), then the primary option is working with the agent that the bank has listed with.
Thanks guys. I found something on the county site that seems consistent with the record shown on zillow (the county shows same sale price and date as the foreclosure listed on zillow). Like I said, this whole foreclosure thing is new to me. Would it be prudent to have our agent look into the status of the property, and see what's going on with it? Don't know if real estate agents would know how to do that.
Btw, the county record I found has some code for the deed type (the code is ST), but I don't know what that means. I'm assuming I can't just call the county and ask them what the status is, who the bank is, etc. Don't know if our agent would know about that, though.
@Kimberly T. Another thing - don't get too caught up in this specific property. It may take them 2 or 3 years to get this thing listed. Keep an eye on it, but also keep on looking for other properties to buy and be making offers on other properties too.