Tampa, FL · Member since 2014 · 169 posts · 164 votes
#1 If a property is scheduled for auction on the Hillsborough county, FL foreclosure site, is it possible to approach the bank directly and make an offer on the property before the auction date? Can you do a deal with the homeowner?
#2 I've noticed that some of the most interesting properties transitioned from the auction calendar to the "Closed or Cancelled" category a few days or weeks before the auction. What are some common reasons for this? Are they being picked-off or resolved with the homeowner?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
11y
Before the sale you would have to do a deal with the owner. The bank is simply a secured creditor until the sale. They can't sell it. If its a short sale, the lender may get involved, but even then you have to start with the owner.
Any number of reasons a sale could be withdrawn. The owner sold it. Or worked out something with the bank. Or there's some issue and the bank needs to delay the auction to sort those out.
Rental Property Investor · Kansas City, KS · Member since 2014 · 604 posts · 222 votes
11y
LOL! @Wayne Brooks . What I'm actually wondering about is if it's kosher to approach the foreclosure attorney with an offer? Is that something that just isn't done? Would it get me anywhere? Or am I just stuck waiting for the bank to put the property on the market?
LOL! @Wayne Brooks . What I'm actually wondering about is if it's kosher to approach the foreclosure attorney with an offer? Is that something that just isn't done? Would it get me anywhere? Or am I just stuck waiting for the bank to put the property on the market?
The bank doesn't own the property, you're going to annoy anyone you ask about it. Even if they wanted to sell you the property they couldn't but they probably don't want to. The bank is going to take it back, get a BPO (or 2) and then list it with an agent. The foreclosure attorney has nothing to do with the sale of the property. It's possible that firm will handle the title work and closing for the REOs but they have nothing to do with offers. Some banks have very specific listing requirements where the property has to be on the market for X number of days before reviewing offers, some have an owner occupant period, etc.
Rental Property Investor · Kansas City, KS · Member since 2014 · 604 posts · 222 votes
11y
Thanks for the input @Patrick L. I've dealt with some aspects of the foreclosure process before when I worked in the title industry be not this particular aspect nor from the perspective of an investor. Since the sale is scheduled for the 17th and the property is vacant I'll probably just have to wait for it to come on the market as a REO. I've been getting a lot of practice lately at being patient. :)
Investor · Chattanooga, TN · Member since 2012 · 227 posts · 114 votes
11y
I recently purchased the NOTE from a banks trustee's attorney and then foreclosed using the same attorney on the homeowner. There was still enough meat on the bone for a good investment.- Because I am still foreclosing- there is still a chance someone can bid up the price or that the original owner can repurchase it. I add fees to make it worth my while.
Flipper/Rehabber · Irvine, CA · Member since 2015 · 49 posts · 4 votes
11y
In order to buy a foreclosure prior to the auction, I realize that I have to deal with the owner. What recommendations do you all have for getting in touch with the owners (letter campaign to the owner, calling if number is available, etc.)?
I am considering offering the equity and/or a percentage of the sale price back to the current owner if the home is sold. For a buy/hold, I am not to keen on renting it back to the current owner because their payment history is not so good. However, I assume they don't want to leave with no room over their head(s). Any suggestions on how to entice current owners in default to deed over their property to me in exchange for something?
Corte Madera, CA · Member since 2011 · 59 posts · 38 votes
11y
Don't ever exclude door knocking. Very, very few investors door knock. Most people in foreclosure almost universally do not want to sell their house. They are not motivated sellers. So you have to convince them why selling to you is a better idea than doing nothing. Human nature is to procrastinate. I've found that people in foreclosure have received many letters that all say basically the same thing. Most that I've seen are unopened. If the owner flat refuses to sell, consider buying the note at a discounted offer from the lender if it is a small or regional bank or private lender and then foreclosing yourself. As to renting back, if the owner can't, or won't, pay his note, why would he pay you? He knows he is getting a free house.
Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
11y
So you would offer to buy the note at what price? The amount left on principle? Can a bank profit from foreclosing and selling for more than what was owed plus fees, et.?