winning bidder on Hudson Marshall home owned by Chase

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winning bidder on Hudson Marshall home owned by Chase

Edward R.
Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes

So I've been eyeballing this house in our area and Saw it on Zillow then Hudson Marshall Auction.  bid on it in the last 15 minutes and was the winning bidder.  The home was sold 8 years ago for $124K. nice ranch, good neighborhood, and schools.  The guy who bought it was someone my wife knew of from work.  a Physical Therapist who has his own practice.  HE finished off the basement and remodeled kitchen, put in all new windows and doors and roof and siding.  Who knows why it went to auction, we haven't been able to figure out what went with the guy or what not.

So we got the winning bid, took me 5-6 $1k bids till the other bidder stopped.  was $85K.   it was advertised as owner occupied but I've stopped and driven by many times and I believe it's empty.  Chase took possession in May.  Hudson Marshall states agent said it was occupied and owner expected to be out by Sept. but w/ 2 dogs may be longer. (again though I believe he's out)

Questions:

Could I discuss lowering the Purchase offer with Hudson to $81k; would they say no and go to the next bidder (which could have been them)  Nothing has been signed yet and is a cash sale.

House looks great outside and for $85K range there should be cushion as comps in the neighborhood put it at $125-$135K 

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    9y

    My wife is pushing for it but I'm smelling something fishy and seems to hastily handled by H&M Plus they relisted on Zillow (not their own sight) and Zillow is showing $6k lower than their price a month ago. but our final bid is lower than that asking auction price

    I've read where people got burned because they started work too soon. I wouldn't touch anything physically until it was final (at least where it costs money) We have an attorney looking through the purchase offer and I'm getting a bad vibe on it. Hudson Marshall sent an email this am that Chase Bank accepted the offer, please send deposit and to allow 10 days for the finalized contract then 30 days to closing. a lot of scenarios put down in this contract and wording about title (they only had a quitclaim deed)

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  • Account Closed
    Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    9y

    I just purchased a chase Hudson and Marshall home and that was the same email I received. No contracts changes can be made and you must send in your escrow payment in the allotted time . I actually received the  signed Chase contract less then a week after the verbal acceptance.

    My contract used  same language using a quit claim deed or other means to convey title so it the standard legal verbiage. According to the title companies I spoke to Chase sells an clean title and you will be able to get title insurance. My property was billed as occupied but the listing agent confirmed that the owners already moved out   .If you have a good deal stick with the process .Good Luck @Edward R.

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    9y

    looks like a good deal on paper and the outside of home and area is a good middle working class neighborhood and surrounding area plus good schools.  Just wish I could see the inside of the house. 7 year old siding,roof,windows,doors (we saw the work being done)

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    9y

    I'm going over now to jump the fence (1/2 acre lot with wooden fence around it) maybe I can see through the windows from the back deck and such.  thanks for the input that you just went through it.  just seems odd how chase took "possession" in May and it's already been up for sale.  

    I'm 99% convinced owner is out.  The owner we know of because they worked with my wife years ago before he opened his own small Physical therapy practice which is still in operation today. reached out to him with a message left at office (general message not the reason) but no call back

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  • Account Closed
    Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    9y

    I contacted the listing agent,on my property, and received a lot of information since she was the one who sold the home to the foreclosed owners  There is no reason you can not knock on the door and see if their are occupants and maybe get a peek inside The fact that you know the home and the work that has been done mitigates your risk somewhat.  

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    9y

    multiple times we have driven by, knocked on doors.  no dogs, no lights, no cars, weeds around doors ways and garage are undisturbed.  lawn hasn't been mowed in about 2 months. water bill is quarterly and there are two charges unpaid ($77 currently $50.  which is the normal amount for our area.  house was put on zillow at first for 2 months with a foreclosure realtor who does these homes, but then went to straight H&M auction. that realtor agent only had notes saying "well-maintained home, newer finished basement.  Unable to show house due to being oiccupied"  I asked H&M for more info and they said agents notes were  that occupant stated they plan on being out by Septemeber but with 2 dogs was having difficulty finding a rental"  I'm of the belief they did find a rental.

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    9y

    Well I jumped the fence and checked out the house (it's a ranch) and the garage back door was unlocked and I opened it.  There was stuff in the garage (some kids stuff, deck furniture snowblower with for sale sign on it.  Didn't expect stuff to be in there.  I didn't enter though.  I walked on deck and looked in windows.  again there was a kitchen table, nice looking couch, and everything looked in great condition.  We had heard he updated everything in there and apparently so.  Light fixtures, ceiling fans, kitchen countertops.  Although there was some furniture in there  it still looked somewhat bare.

    Just seems bizzare.  

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    9y

    Also, We still haven't signed the purchase order - Attorney said the wording is rather odd and contradicts wording in another part of the contract but should be a none issue.  It was something about Chase only having a quitclaim deed and know clear title.  My attorney said it could be a week before we get a clear title (If)  that would mean if we don't and back out we are out the earnest deposit.   

    Do you run into this much?

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    9y

    SOP for REO auctions. Your contract or the bid terms should tell you if the bank is offering title insurance. Even they are, for free, and you have the option of paying for/obtaining your own title insurance, do that as the bank title policies often don't include unrecorded liens (utilities, code violations, etc.). Get your own title search now anyway either way, cheaper to lose your EM verses assume some $20k unforeseen problem. Typically, you won't have any title issues, but make sure.

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    9y

    attorneys office is doing that now; he said it could be 1-2 weeks before we get it. There was a concern in the language of the Contract that we could LOSE EM$ if we back out due to a tainted title. I thought REO's ar emuch easier and less worry on titles. Owner only gave a quitclaim deed.

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    9y

    Signed purchase offer and attorney wants to add a contingency after Chase signs it to the effect of "....must have a marketable title upon title search"   Attorney said they could deny this and continue on or walk away too. but he's using the wording to give us an "out" if there is a title issue and to get our earnest money back.  HE feels though thet the original wording may allow that anyways (just depends how  one deciphers it)    Any thoughts on that?

    From what I've read, people say they usually haven't had problems with titles from Chase REO in these auctions. Hopefully, we'll hear by Friday (in 6 days) from the title search.

    I went to the court house and didn't find anything but a small hospital judgment against the owner but nothing on the property.  Foreclosure file was thick as hell but didn't notice anything strange in it.  Foreclosure started in Spring 2015 and granted for Chase in Nov. 2016.  

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    9y

    UPDA"TE: THings seem to be going well.  Owner/tenant has moved out since then (he was half out anyways)  TITLE seems to be free and clear according to the attorney.  LAwn is looking overgrown in the front/side so I'm going to pay a guy to run over there and mow it up.  just the front/side because thats what people see and I don't want it looking like an empty home and invite trouble.  it's in a good neighborhood but still.

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    9y
    0Reply
  • Daniel Krantz
    Rental Property Investor · New York City, NY · Member since 2015 · 42 posts · 148 votes
    8y

    @Edward R. what was the outcome of this process for you - did everything work out? I'm the high bidder right now on a H&M property and about to receive a PSA. Just curious how this played out for you. Hope it went well!

    0Reply
  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    8y

    My experience with them was very smooth; I'd deal with them again in a heartbeat.  No delays, and questions were answered quickly.  We were happy with the outcome. 

    1Reply
  • Matthew Shay
    Investor · Miami Beach, FL · Member since 2017 · 71 posts · 12 votes
    8y

    Where are you now in the process? Are you rehabbing it, do you have it listed? Would love to hear the scope of work if you have done any @Edward R.

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    8y

    We got done with it first week of January (more or less). Just little touches after that. Listed it to sell in the Spring, had 2 solid offers within 10 days.  But had an opportunity to rent it out and we did that; it was a good situation. Plus more tax advantages and profit.  All in all it worked out great. I loved working on it and came out better than we anticipated. Everyone who goes in it loves it.  I’d buy again through Hudson and currently trying to find our next project.  

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  • Elva Duong
    Investor · Houston · Member since 2016 · 2 posts · 0 votes
    8y

    hi Edward, Did H&M allow you to chose your own Title Company and Attorney for closing? 

    Also, you mentioned that your property was bought as QuitClaim Deed, was you able to obtain title insurance for the property?

    Lastly, did you purchase Preliminary Title Search report prior to signing the purchase contract with them? Did you finance this property through conventional loan? if so, how did bank accept quitclaim deed? thanks.

    Elva

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    8y

    yes I was able to use my own title company.   I did not run a title search beforehand because I did my own due diligence and various methods to determine anything.  As with most Hudson marshal homes, it’s cash sales; thus we paid cash for it.  No problem getting my title insurance.  

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  • Bob Floss II
    Attorney · Northbrook, IL · Member since 2017 · 719 posts · 549 votes
    8y

    @Elva Duong When purchasing a property from a bank or auction house, you almost always have the option of choosing your own title provider. I've done closings with HUD, auction.com, H&M, and a few others and they give you the option to have buyer option title and sometimes even request a special warranty deed if you act fast. The trade off is you will have to pay for title as opposed to seller paying for title insurance, but often the title provided by the seller in these transactions is worthless.

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  • Edward R.
    OP
    Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    8y

    Bob makes a good point.  Always try to get your own; letting others decide for you can leave powerless and a weak title report.  You want what works best for Your interests not theirs. 

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