Abandoned REO, how do I proceed?

6 Replies

Hi BP!

I have noticed this property that has been vacant for at least two years now. There are notices in the window stating that it is vacant/abandoned. It also has a city notice on it in regards to the out of control grass. Another notice says "Mortgage Contracting Services" with address and phone number, but also states the MCS does not have sale/rental info.

I pulled some information on it the property to find that Chase Home Finance owns it and it was foreclosed back 2010 ( from what I can tell). On the county website it states:

2 - INVALID SALE-3-Foreclosure Related/ShortSale (in the sale description section) in Nov. 2010

Does anyone know what could be going on here? Its been empty for years and needs work.... how can I reach the person responsible for this property and ultimately buy it. Deal with the bank? or find the previous owner? or wasting time?

Any advice please! thanks

I pursued a few of these but got absolutely nowhere. Very likely you'll waste your time if you try to find out what is going on.  Eventually the bank or some government agency will put it on the market.  Remember there are tens of thousands (probably more) of these houses still owned by the banks.  I'm sure Chase has many thousands.  

This would suggest that Chase attempted to complete a foreclosure that was thwarted so some (unknown to us) reason. 

This would mean its a zombie house (title still in mortgagor' name or record owner). Chase probably has several of these houses (as in several hundred thousand) that they have put on the back burner, pending some other resolution. It also means that the mortgage is still intact and the property is unlikely to have much equity.

Remember, banks got TARP money, made profits up the yen-yang (ironically with lots of Chinese money) and these properties are just a pain to remediate on a large scale basis. 

Likely a fool's errand, as Cal mentioned.  The bank owns it, and hasn't done anything with it yet.  Might be worth it to pursue it, that way you won't be wondering what if next time, after you find out it's a fruitless venture.  The Invalid Sale doesn't refer to the actual sale/deed transfer....it refers to the indicated price for the transfer, not being valid foe comparable taxable value computations by the tax appraiser's office.

Thanks @Cal C. @Rick H. and @Wayne Brooks  

 I appreciate your feedback! Seems that this property could be a waste of my time...I drive by it often, so I'll just keep an eye on it. I also read on another forum to see if there is an agent/agency that typically works with Chase (in this case) and try to gather info that way. Maybe I'll reach out just to find that it is in-deed a fruitless venture!

Rick- I plan to check out your website as well as follow you as I see that you are the probate guy....I am VERY interested in this niche and probate properties as a whole (one of the reasons I became interested in REI). My family and I are currently dealing with my grandparents property in which we would ideally buy out the other siblings ownership....easier said then done! I would love to soak up some of your wisdom!

Thanks again!

Originally posted by @Allison Ezzi:

Thanks @Cal C. @Rick H. and @Wayne Brooks  

 I appreciate your feedback! Seems that this property could be a waste of my time...I drive by it often, so I'll just keep an eye on it. I also read on another forum to see if there is an agent/agency that typically works with Chase (in this case) and try to gather info that way. Maybe I'll reach out just to find that it is in-deed a fruitless venture!

Rick- I plan to check out your website as well as follow you as I see that you are the probate guy....I am VERY interested in this niche and probate properties as a whole (one of the reasons I became interested in REI). My family and I are currently dealing with my grandparents property in which we would ideally buy out the other siblings ownership....easier said then done! I would love to soak up some of your wisdom!

Thanks again!

 When you view Rick's website make sure you read the testimonials. He's the go to guy not only in So Cal but CA as well...

Mark Pedroza, Real Estate Agent in CA (#01858403)
1-415-786-6700
Originally posted by @Wayne Brooks :

  The Invalid Sale doesn't refer to the actual sale/deed transfer....it refers to the indicated price for the transfer, not being valid foe comparable taxable value computations by the tax appraiser's office.

Wayne, Does this mean a ridiculously low price was paid for the house? I ask because next week I'll be working with a widow to relieve her of a real estate burden which I will be paying a seemingly unrealistic price for.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.