Bank Owned Properties

8 Replies

I am in the Long Island, NY area and there are tons of boarded up homes, When I look into who owns them I am finding it's the bank and then ROAD BLOCK! I am not sure where to go next. No one at the bank will talk to you or give you any information. I am not sure who to contact next. eventually these homes go up for sale and they never make it to the MLS because so many people want them. How can I get a step further from where I have been?

hi katelyn. boy, i wish i had an answer for you on this one. i have the same issue here in buffalo, ny. there is a house on the next street from me that has been vacant since 2010, and still no foreclosure on it. the bank, as you said, will not even talk to you. why does it take so long to foreclose on a house in new york???? i'll tell you why.......... lawyers. they need to get ever last detail correct or the previous owners can come back on them for the smallest of details. my opinion, if you stopped paying on your house, you loose it. is that so damn hard to understand????? the only advice i can give you is to keep checking with the county clerks office. anytime the bank takes the next step in foreclosure, there has to be a hearing and paperwork to go with it. this paperwork has to be filed with the clerks office and is free to the public to look at. sometimes, and this is a little known secret, banks just give up on a house. they weigh the cost of maintaining it for an extended period of time and legal fees along with it, verses the price they may get out of it in the end. the government puts a limit on how many foreclosures the bank can put back on the market in a year, so the banks are more likely to put the high dollar ones out there as opposed to the cheaper houses. who wouldn't? if you were the banker, you would do the same thing. so, the lesser houses, the banks sometimes just drop the whole deal. they file a release of lien or release of mortgage with the county clerk and they throw out any claim they have to that house. they send a letter to the last known owner that virtually says " here, have your house back". all you have to do then is find that owner. i have personally bought 2 houses that way and i am waiting on a couple more houses that i think that will happen to. do some research on these houses. you might find one hell of a deal. good luck to you

Katelyn, if it is a small bank that owns the property and not to far away I would go visit the Real Estate department. If it BOA you most likely are wasting your time because they will eventually list through a Realtor to get top dollar.

Paul 

I read a great idea in a different post but I don't remember who said it.  Anyway if the foreclosure process is not complete try to contact the Owen (not the bank, the prior owner/ residents.) they may still be able to "redeem" the property by paying off the loan in total as well as all fees. (Assuming the numbers make sense.)  When you speak to them try to get them to redeem the property with your money and offer them $1-2,000 to do it. Obviously you also need them to sign a sales contract getting them to deed the property to you.  Check your state laws; here in PA the owner can redeem the property up to one hour before the auction takes place.

Good luck!

@Mark Elliott Congratulations on finding some low value properties where the bank just released them.  But, "the government puts a limit on how many foreclosures a bank can put on the market in a year"...not at all.

The banks hands are tied until the foreclosure process has run its course. New York this means anywhere from 2 to 3 years in most cases but have see some take over 5 years. So what to do? You actually need to deal with the owner in default, that's where the deal needs to be made. So go to the town and obtain this information and try contacting these owners... Otherwise chances are they become REO's if they aren't sold at auction...

wayne, you are wrong. check with the obama adminstrations ruling in 2009. they put a limit on the number of houses a bank can release to market in 2009 because the flood of foreclosures hitting the market was killing the housing market. and micheal has an excellent idea with contacting the owner, but here is another idea. the last step in foreclosure for a bank is to have a foreclosure/ trustee auction. usually held right at the county court house. sometimes called a sheriffs sale. you can go to this auction and bid against the bank on any house. in most cases the bank wins, but not always. you could get a decent house for a decent price if you want to outbid the bank. they are only going to bid just so high. 

@ Mark. Telling Wayne he's wrong, doesn't make him wrong. I've often found that if you refute the validity of someone's assertion, it's best to do it with fact and evidence versus, "No...your wrong". That said, there was a 3 month moratorium in 2009 only on a state level and nothing by Obama, and only for the purpose of verifying the validity of the foreclosure documents before proceeding with a foreclosure. This was in response to the robo-signing scandal of 2009. That was six years ago Mark, and lasted for 90 days, and had nothing to do with Obama or the Federal Government. It WAS one of Obama's campaign promises but he didn't do anything and again, no, there was no "Obama Moratorium".

...and your idea about bidding at a foreclosure sale? Ummm...that's what the foreclosure sale is supposed to be. A public bid. How is that some genious idea when that is the very nature of the foreclosure itself?

Originally posted by @Katelyn Montrony :

I am in the Long Island, NY area and there are tons of boarded up homes, When I look into who owns them I am finding it's the bank and then ROAD BLOCK! I am not sure where to go next. No one at the bank will talk to you or give you any information. I am not sure who to contact next. eventually these homes go up for sale and they never make it to the MLS because so many people want them. How can I get a step further from where I have been?

 What are some of the banks and who/where exactly are you calling?

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