Investor · Lyndonville, VT · Member since 2016 · 47 posts · 14 votes
I have been watching this three unit on the MLS. It was going to be in a short sale. The sellers did not want to show people the building until they went through an eviction. I just got notice today that the sellers did not evict the tenants because they paid some of the rent and they are going to foreclose on the building.
Can I call the sellers bank and try to buy it from them? Do I need to wait for the house to be foreclosed? I am not familiar with auctions and would prefer not to buy a house through an auction. Should we submit an offer to the sellers and put some contingencies in there? What can those contingencies be? We still don't know what kind of repairs the building needs because we haven't been able to inspect the property.
I am not as familiar with making offers to banks or sellers in a short sale. Any advice would be appreciated.
Flipper/Rehabber · Tallahassee, FL · Member since 2014 · 462 posts · 237 votes
9y
In my experience the property is not the banks until the property had been foreclosed on. So therefore you'd have to go thru the owners, which are being represented by a realtor, so you'd have to go thru them instead. Why don't you just make an offer thru the realtor? They can talk to the bank and you can get your answer.
Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
9y
You're playing with Fire and could potentially get burned badly.At this point the bank is almost irrelevant because they don't own the property,the seller does.You have to negotiate with the seller and make a written offer to be taken to the bank for approval.Not going to be easy with a short sale situation and the bank is already upset with the seller and now preparing to foreclose soon.The tenants are going to be the hardest part in this mess because they have just restored their tenants rights with the accepted rent whether it was the entire amount or not.I doubt the bank will stop the auction unless you offer much more cash than you should and no contingencies sight unseen.Expect the inside to be trashed and need a full gut job remodel and make your offer accordingly.You'll have to formally evict the tenants after taking possession
Investor · Lyndonville, VT · Member since 2016 · 47 posts · 14 votes
9y
@Brandon Battle if I don't look into this building, I could be missing out on a good deal. I don't necessarily think I am playing with fire if I navigate my way through this with protections.
I will submit and offer through the realtor. One problem that I think could happen if the offer gets accepted is that the bank I am going to get my financing through will want an appraisal and the tenants are not letting anyone into the building.
I can handle evicting tenants and completing gutting a building. The one thing I don't want to do is re wire the buildings electrical.
One thing I was thinking about doing was offering an amount that I could cover in cash with the only condition being a good title search from my lawyer. This would keep my bank out of it which would mean that an appraiser going into the building is not necessary. The offer would be $34,000 less then the asking price.
Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
9y
Cash is king in these situations,go with that.No bank is gonna give money in an unknown situation so if you don't have access to the inside of the property for appraisal and approval,you won't get a penny of financing unless you convince hard money lenders to take the gamble with you.You might want to line up some cash investment partners to help with the gap funding if you can't get your $34,000 less offer accepted.Good luck in your endeavor.