Making an offer on a foreclosure (South Carolina)

8 Replies

So, I found a SFH listed on Auction.com, it's not listed on the MLS...I drove by the house and it appears to be vacant. There was a judgement foreclosure notice (Lis Pendens) taped to the door that showed the owners name and the name of the bank. Can I make an offer directly to the bank and can I make an offer contingent upon my inspection of the home? I'd just like to understand the process...thanks BP Family

First of all is this a REO, or one of those places where auction.com acts as the foreclosure trustee, for the actual foreclosure sale? Either way, you can't offer directly to the bank, they chose to use auction.com.

From my understanding and I could be wrong, auction and others make fake bids to artificially increase the price of properties. Its worth looking into but that along with some sight unseen shenanigans has always kept me hesitant. Then again you might find a great deal and I could be wrong.

@Tom Brooks People need to just get over the whole "fake bid" issue.  The auction sites bid on behalf of the bank/owner, just like the bank bids at the initial bank foreclosure auction.  You think they just roll the dice if only a couple of people show up that day, and let it go for half of value?

@Jason Griffin

If there is a listing agent on the property, I would call him/her and ask if you can make a direct offer through the listing.   The worst he/she can say is "no".  Then you must go through the auction website process, which is a shot in the dark in my experience.

IMHO, it is alway beneficial to speak with a human being and let him/her know that I am a real person who buys local real estate on a regular basis. If we can't make a deal on this property, perhaps he or she will call me when the next good REO comes along. Good Luck. Persistence pays!

@Wayne Brooks  I agree.  I attended our local live auction at the courthouse this week and sat right next to the attorney who represents the banks.  I was able to look over his shoulder and see his notes "Minimum bid" and "Maximum Bid".  When a property hit the maximum bid, he let them go.  It is a fair process in my opinion, whether online or live.

@wayne brooks

I understand your frustration. I just believe it is a misleading marketing tactic and that companies should operate with greater transparency as a matter of ethics. If the lowest the bank will take is 50k, then the starting bid should be 50k. What they are doing is inapproperiate market manipulation and I will avoid doing business with them because of this. 

Thanks everyone for the input...The house was auctioned last week and ended at 45K...Reserve not met...ARV is 130K..If Wells Fargo is the lender, then, could there be any back taxes or a second lien on the home, or does the lender , Wells Fargo, handle that? Thx