I am interested in purchasing a specific property which is in foreclosure. The current owner says he went through chapter 13 bankruptcy years ago and was surprised to hear it was still in his name at the court house. I found out which bank had it in foreclosure and contacted that bank. They simply stated to contact the real estate agent once it is listed. But it is not listed yet, so the bank then said that it is not yet for sale. Any advice on who to call next, or do I just need to wait for a real estate sign to pop up?
@Josh Harris It is impossible to know when it will come to market. It could be tomorrow, or it could be in 5 years. While there is a logic to the bank about when it comes to market, you will never be privy to that logic. They may have very good reasons to hold it on their books, or they may have bad reasons. It has a lot to do with what accounting methods the bank uses to account for these properties, and that information will never be in your hands. So my advice is not to wait, and just move onto another deal.
In over two decades of selling bank REO's, i'm not aware of and can't recall any "accounting method" that i've been held to or that applied to determine when I bring a property to market.
What holds me up in bringing a property to market is, do I have a trustee's deed showing I own it after sale? Check? Ok, now, do I have any investor that i'm servcing the loan for that I need instructions from? Check? Ok, now, I have to get an inspector out to tell me what i have. Is it occupied? Do I know for sure it's vacant? Check? Ok, so, do I have to post a notice about me ownning it now and wait the requisite time before I can enter or, am I sure there is no one there so, I instruct the vendor to go and change the locks. Now that the locks are changed, I have another vendor go an check the property out. Is it saleable? Is there deferred maintenance? Any health and safety issues? Check? Ok, now I either fix it or, once my real estate agent goes out and tells me what my quick sale value is or my open market value is, I order an appraisal and then do a valuation to see what is best for the bank/investor from a "yield" standpoint. Do I put money into it or do I sell as is, discounted for a quick sale? Got all that taken care of and now I have to find out if I have to register the property with some local entity to be compliant with their rules. Do I have taxes to pay? Do I turn the utilities on?
So, after all that is done, THEN the property gets listed with an agent. Sadly no, this doesn't happen in five days. That, in my experience has nothing to do with accounting methodologies but instead has everything to do with good assett management.
Just my two cents...
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