Lost in the vortex

[JH Bridge]

I am in need of a little guidance. There is a SFR that I'm working on, but can't seem to get anywhere with the powers that be.

An NED was filed with the county and an auction date is set. The owner signed a deed in lieu of foreclosure over to the mortgage servicer ( I believe he thought he was signing it over to the bank). I have called that servicer, but they can't do anything because they only service the loan. I have tried calling the bank that was on the original deed, but they said that they have since sold the loan. There is an attorney listed on the NED, and I called them. They state that they can't do anything without the owners consent (which would be the bank, right)? I am at a loss as to who I need to get in contact with to even submit an offer.

I don't know how to find the person or entity that actually owns & holds title to this property. I am not very experienced and would greatly appreciate any advice on things I may be overlooking or just flat out missing.

Thank you,

JH Bridge

[Aaron Mazzrillo]

You're hunting big foot. I have never heard of an investor doing a deal directly with a bank on a pre-foreclosure. They don't own the house so they can't make any decisions regarding title. They may not even own the loan and are just servicing it. There are typically 4 options when it comes to preforeclosures;

1. short sale with the borrower's participation

2. wait until the trustee sale and bid on it

3. buy the note from the bank

4. buy it subject to the existing debt (if there is equity and good financing) and hold it as a rental or sell it on a wrap. Personally, I wouldn't do the later, but have done the former many times.

There is one final option, but it is post foreclosure and that would be wait until it is listed with a local agent. Some of the above really depends on who is the lender. If it were a small, local bank, you might have some other options like walking in and talking to their person in charge of nonperforming notes or bank owned assets. I think your time is best spent looking for better opportunities.

Any particular reason you chose to pursue this house or is it just because you don't have a lot of experience and think a house in foreclosure is a money making situation?