Tracking down a foreclosure and making an offer

6 Replies

Okay, here's the scenario. There is an abandoned house in my neighborhood. There are stickers posted on the windows stating that the house is abandoned. These stickers were left by a security company. In doing some research, we found that the original mortgage was with bank A. Bank A was subsequently bought by Bank B, which was later bought by Citibank. We have an address for the Citibank REO department, but no other contact info. The house has been abandoned for several years. Possibly as many as five. The balance on the loan when it went into foreclosure appears to be $175k. How would I go about contacting Citibank to make an offer before this house goes to auction? What would a reasonable offer amount be? What are some other questions I should be asking?

Thanks in advance for your feedback.

Jason K Green , im sure others with chime in here too. To the best of my knowledge, banks do NOT discuss their foreclosures or sell them to people with out listing them. Most likely you will just have to wait until it hits the market. That is, if it is not a ghost foreclosure whereas the banks don't know who owns it, in which case it will be 5 more years.

Was there a trustee's sale and the property went back to the lender (there's a recorded trustee's deed)? Or was there just notices of default/trustee' sale? It's difficult to impossible to work directly with REO lenders until they offer for sale. And if it wasn't foreclosed, you can't work with the lender at all (other than buy their note). But never say never! Likely there is some other issue, like a BK. If you PM me the address, I'll run it through my filters and see what I come up with.

@Jason K Green

I agree with @Stephen Bell , I have had little luck in attempting the same thing.  Others have also said the same. 

The only thing I can think of would be to contact the law firm that handled the sale.  Maybe they would have a bank contact for you.  The law firm can be found on the land records, hence doing a little title search.

As I suspected earlier, there are "other issues" here. The bank has not foreclosed and the property still belongs to the borrowers. The borrower is a CA disbarred attorney serving time in a state prison. There are, like, a bizillion issues. Judgment liens and law suits and lis pendens and HOA issues. All with an attorney with state provided room and board working the system. It's always tempting to think there is an angle, and there may well be. But the players in this one are insane (for my purposes). So I say pass. :)

Questions:

Is it a CA property?

Equity?

NOD recorded?

I'm not aware of any CA statute barring a non-judicial foreclosure from proceeding merely due to fact of trustor (borrower) incarceration.

What are the issues, @Account Closed ?

Funny; I have two different deals right now involving disbarred attorneys. They used to be rare. Both suffering from SFS (Sticky Fingers Syndrome).

Originally posted by @Rick H. :

Questions:

Is it a CA property?

Equity?

NOD recorded?

I'm not aware of any CA statute barring a non-judicial foreclosure from proceeding merely due to fact of trustor (borrower) incarceration.

What are the issues, @K. Marie P.?

Funny; I have two different deals right now involving disbarred attorneys. They used to be rare. Both suffering from SFS (Sticky Fingers Syndrome).

The incarceration isn't the challenge. The challenge is the borrower's legal ability to delay the foreclosure. Also, there appears to be cash coming from somewhere. Lots of liens, IRS, state, HOA getting recorded every year and then getting paid and released.

Like I said, there may be a play, perhaps with one of the debts.  But I wouldn't go near this one.