Bank Owned Properties, how to proceed?

Question

Recently I made a contact with someone who has access to Bank Owned properties. However, I am not sure how to approach the subject without making some stupid mistake. I don't want to burn a bridge.

So before I start a conversation, I am trying to learn as much as I can on the subject. Is there a rule of thumb of how to present an offer to the bank and how much? Some of the houses are over $400k marker value but only $2000 owed to the bank... What should I do?  Is there a form to use to submit the offer? WHo do I talk to at the bank?

Sam Shueh · Answer

What you saw is a notice of default showing those who are behind with loan payments etc,

These are pre-foreclosures meaning they are behind with a couple payments. Some may be liens or even delinquent garbage payments. A payment check will get these properties off the status.

You deal with actual auction and be ready when they are auctioning off these properties, Court houses, auction.com, MLS are the legit.  Often they expect cash or preapproval letters from the lenders of their choice.

If you contact the lender even if they have a default department they sell these high risk loans to other lenders. These secondary lenders can decide how to make money sell all or retail to make money.

Wayne Brooks · Answer

Typically a bank will put their inventory on the open market.  How much “is owed” is a misnomer.....there is no longer any debt on the property and they “owes/owed $2k on a $400k peoperty” is likely bogus.

If this person Truly does have access and can submit offers, the bank will be looking for proof that you as the buyer can actually buy.  Keep in mind, banks are not ignorant or desperate, they’ll be looking to get as close to market value as possible, to limit their losses.