Due Diligence

5 Replies

I have found a few properties that are coming up foreclosed on Redfin and not finding them on the MLS. What are my next steps to contact the banks and start the process?

P.S. They are vacant.

I dont know of any banks that will deal directly with individuals. All homes usually get listed with an REO agent.

I was told the same thing. So, why are these diferent?

Just because you can see them as being in the process of foreclosure on a web site does not mean the bank holding the defaulted loan is offering them for sale.  Eventually, the banks will use a real estate broker/agent who specializes (or has extensive experience) in selling foreclosed properties to handle the sale of the property.  At that point, you will see that property listed on RE websites as "for sale", and not just "foreclosed".

What you're seeing now is the website alerting you that the property is in foreclosure.  It is not necessarily currently for sale.  If it was for sale, it would say so.

Is it possible to go inside and inspect these properties before they go up for sale? If yes do you just call the bank and ask for permission?

If you like the home in foreclosure – you can also contact the lender to see if they will entertain an offer from you for you to buy the note – and you continue with the foreclosure. I have seen this work effectively on many properties – as long as the lender was not a huge monster lender. With the monster lendrrs you just cannot penetrate the grist mills of procedures to find anyone who can make a decision.

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