I've been looking at this fourplex that has an out of state owner and looks distressed. Looking at the deed I came across a couple of interesting things unpaid taxes etc. I also came across a portion where a bank was recorded as the appointment substitute trustee. Through my research it says that when a bank is assigned as a substitute trustee the property is about to go through foreclosure. If this is true can you contact the bank to possibly workout a purchase agreement with the bank. Are there any possible regulations against this? This is within Washington, D.C. and I understand everywhere is different bust just wanted to know has anyone done something close to this. I have sent a letter to the owner and not sure if they want to sell and of course as of right now it's not listed anywhere. Thanks in advance for your help.
Also I am including a picture of the actual deed if people want to actually see what I am talking about
As far as I understand the legal restrictions, a lender cannot sell a home that is under foreclosure until they have title to the property. Even if they are a trustee, they still need the permission from the owner(s). In addition, they are bound by confidentiality laws. You cannot just call the bank and ask for the balance due on a particular property without the written consent from the owner.
Your best bet is going to be to contact the actual property owner and work from there.
The bank cannot sell the home until they complete the foreclosure process. It is best to try to contact the current owner and work out a deal.
Send a letter a week until he calls to tell you to stop mailing him or until he starts otherwise opens a line of productive conversation. Make sure the letter explains that he is guaranteed to to get equity IF you purchase the property...and he gets nothing if the bank forecloses. You're not telling him how much equity, only that he will get some equity.
That's an awesome strategy @Guy Gimenez I will continue to do that as well persistence is key.
Remember, he probably doesn't recognize he has a problem so you'll have a hard time convincing him you have a solution. He may not give a rip if the bank takes the property...BUT, if you provide him a clear benefit, it could get him off dead center.
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!