Residential Real Estate Broker · Birmingham, AL · Member since 2015 · 42 posts · 15 votes
I found a foreclosure in a fantastic area where I live and was actually told about it by a neighbor. I have bought REO and at the Courthouse steps but this one has me stumped. Its empty and appears to have been for a long while. The owner still shows the last buyer on the tax records. I figured out which bank had her only recorded mortgage so I assume they have taken it back. They are a very small local bank so I assume they would have held the mortgage most likely. I would like to scoop it up as is before it hits the REO market. My question is, should I just call the bank and ask to talk to someone about the status of the property? Also in searching. The owner has a massive 6 figure judgement against her that is filed but I don't know how that affects this property if at all. The judgement just says who the plaintiff was and the awarded amount. Any advice would be helpful
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
10y
If the judgement does not attach to the property, see if you can buy the note from the bank. A small bank may sell a non performing portfolio loan at a discount.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
You can surely contact the bank, but it sounds like the bank has Not finished any foreclosure yet, so they could only approve a short sale (assuming it's upside down). If the judgment attaches to the property there, a foreclosure is probably the best option for the bank. You'll need to talk the owner owner of you want to try anything prior to a foreclosure auction.
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
10y
If the judgement does not attach to the property, see if you can buy the note from the bank. A small bank may sell a non performing portfolio loan at a discount.
Margate City, NJ · Member since 2013 · 30 posts · 24 votes
10y
Check with the county first, see if it still on the list or if the bank took it back. If it's a small local bank you could try to talk to someone. I have yet to hear of anyone pulling that off though. The other possibility is the bank may have sold the bad debt but the change in ownership hasn't been recorded yet. Do you know any REO agents in your area? Check with the ones who do the most business. They may have received notification to list the property. When I am contacted about a new listing, sometimes it is 6 or 8 months before it actually gets a sign put on it and is downloaded to the MLS. I currently have 2 properties with title issues. The original notification was sent me me well over a year ago and it still is not technically listed.
Specialist · Dallas, TX · Member since 2014 · 900 posts · 392 votes
10y
Jason, I am not clear if you won the bidding at the court house, or its coming up to foreclosure sale. Can you please clarify this?
Typically the owner of the mortgage sets the opening bid and if no one bids, it's a REO & they have the deed now. If you go and bid higher, its yours and there is no more mortgage/note.
You might be able to contact the bank and get them to sell you the mortgage before bidding, otherwise show up and bid up to the value you think its worth. Good luck!