Investor · Spring, TX · Member since 2015 · 29 posts · 6 votes
11y
The other house I found shows it was foreclosed by Chase in August of 2010! This is also not listed on their REO page. It's been 5 years, what could possibly account for it not being listed?
Residential Real Estate Agent · San antonio, TX · Member since 2013 · 130 posts · 44 votes
11y
It means it isn't for sale. If it were a small local bank it might be worth pursuing, but I'd bet $20 you won't even get anyone to answer the phone at a national REO department.
Real Estate Investor · Prince Geroge's County, MD · Member since 2012 · 392 posts · 104 votes
11y
Mimi foreclosures that are owned by the big banks go through asset managers and you have to wait for them to be listed to buy them. They don't entertain small investors who want to buy from their inventory. A small bank with fewer branches may be willing to discuss it's inventory with you but not a big one. So yes any chasing of the big bank reos would be a waste of time until they hit the market.
National Banks have procedures that they follow when selling foreclosed homes - It isn't the same as dealing with an owner who can review you proposal and instantly make a decision. They are also not a motivated seller. It is true that banks don't like holding property, however, Its very likely that before this property is sold, they are going to have it appraised (or a BPO at a minimum) and put it on the market with a realtor to obtain as many bids as possible in order to recover as much money as possible. Over the last 2 or 3 years, it seems that most REO deals are 'meh' at best.
Additionally, The banks will sell the property when they are ready to, which isn't necessarily at the first chance they get. The last flip I purchased was a REO and our closing was delayed two months because the bank wouldn't signed the papers. When I asked why, they said they needed to push it to the next quarter for financial reasons.
If you're driving for dollars, your prime target should be homes with absentee owners that are vacant. Dealing directly with an owner that can make a decision is critical, especially if you are wholesaling deals. Since they are absentee and the property is vacant, they are likely motivated as well, which helps you secure a good price.
If your interested you can drive by and see what the disposition of the property is you might find out more if you live near them. What these guys said is mostly true in pre-foreclosure you would be dealing with loss-mitigation. Some of these lenders are careful with their shareholders. You have to remember one thing however non-performing notes are losing money. Be very diplomatic and discreet in your approach. Deal is after the blowout these asset people really started rolling. That complicates things but hey life can be complicated.
Investor · Spring, TX · Member since 2015 · 29 posts · 6 votes
11y
Still doesn't explain how that 2nd house, which Chase foreclosed on in August 2010, STILL does not show up in their listings! Are you telling me Chase is sitting on this house for 5 years and not trying to sell it?
Specialist · St. Petersburg, FL · Member since 2013 · 114 posts · 49 votes
11y
Yes, unfortunately sometimes the banks foreclose then sit on it, sometimes they start foreclosure, then sit and have to back out of foreclosure, and sometimes they do nothing with them vacant and un-foreclosed for 5+/- years. Banks, especially of that magnitude are not prepared or well equipped to handle this. There are a lot of flaws in their process.
Still doesn't explain how that 2nd house, which Chase foreclosed on in August 2010, STILL does not show up in their listings! Are you telling me Chase is sitting on this house for 5 years and not trying to sell it?
This could easily be the case. Large banks have an influx of inventory; many are in a log jamb of sorts. There are also cases of 'zombie homes' that sit in states of disrepair for years. The HOs have long since moved, but the bank delayed the actual foreclosure proceddings. Other factors, like title issues, environmental issues (asbestos, oil tanks, etc) can hinder the process. In fact, I have seen foreclosures lingering for longer then 5 years...