how to buy a foreclosure

Question

I have a foreclosure across the street from me (st. louis, MO). I have successfully identified the attorney who handled it and the bank is chase bank. I know this is a huge bank. Where do I go next if I'd like to buy it? Lost cause?

Allan Rosso · Answer

@Andrew Schoenberg, I'm pretty new myself so no worries. My first BRRR deal was a VA owned foreclosure that was listed on the MLS. If I understand it correctly, the bank sends it to auction first, then they'll list it if they aren't able to sell at auction. I would probably start by asking a real estate agent if the home is listed. If not, call the attorney and let them know you're a new Real Estate Investor that's trying to learn the process, and inquire about the property. I'm sure they'll be able to tell you what part of the process the property is in, and may point you in the right direction as far as pursuing this particular deal.

Tom Gimer · Answer

So you believe the foreclosure has already occurred.

If the bank now owns it, it's because they (the lender in first position) conducted a foreclosure sale and they were the high bidder -- they bid in at the existing first mortgage balance and no interested buyers outbid them.

It's now a bank-owned property (REO) and in all likelihood will be listed with a local broker. Keep an eye on listings or get a contact in the REO department at Chase.

Andrew Schoenberg · Answer

@Allan Rosso I'm admittedly a complete amateur on the subject, but I believe the bank now owns it. What do they do to unload the property does it have to go to auction or can they just list it?

Allan Rosso · Answer

@Andrew Schoenberg, definitely not a lost cause. If it's in pre-foreclosure, have you identified the current owner? Is the home scheduled to go to auction? Has it already been foreclosed and failed to sell at auction?

You can always contact the attorney and try to get these answers if you don't already have them.

how to buy a foreclosure

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