Foreclosure process help URGENT

14 Replies

Hello everybody I'm attending a foreclosure auction tmrw morning and pulled a few of the properties. I visited 2 of them and 1 of them was very wanting to sell by the end of our discussion, doesn't trust her current real estate agent, and has an "investment broker" who will be offering 900K tmrw. She owes 375K to the bank. Basic comps in the area show properties for 1M+ My question is: is there anything I can do as a real estate investor this late in her foreclosure process? Shes such a sweet old lady and I genuinely want to help her. Any and all suggestions will be appreciated. Debt- 375K, auction tmrw 9AM. I dont even see the property listed for sale on sites? ? Any possibility of wholesaling this property out the night before? I've heard owners can delay the sale? Thank you!
@Alex Shin she just doesn't know what to do. I wish I had been more prepared and be able to offer a solution on the spot. Any help or guidance will be appeeciated

It doesn’t really matter....she will get the surplus above the $375k.....if someone buys it at the auction for $900k, is the same thing as her selling it herself, and maybe with less fees.

@Andy Mirza @Wayne Brooks I reached out to a few people and I was referred to a REO specialist agent. We met with the owner the day after it was supposed to be auctioned off (got postponed) and we're going to be listing on the market. Hes going to get a leasing agreement signed on Monday and will list the property at 1.5M$ as of now. Some issues I see moving forward is if the owner signed off the power of attorney to her son and was not aware that she did so. She claims she didnt sign anything besides something for her leathcare. This might go to civil court if she was taken advantage of? As an investor, are you allowed to get someone under contract who's already signed a leasing agreement with an agent? Or are sellers allowed to find buyers besides what the agent brings to the table. How would seller financaing work in this scenario?

An REO agent would certainly be the wrong type of agent to bring into this.

If a power of attorney floating around is truly a concern, the owner can execute and record a blanket revocation of any POAs she has executed.

@Alex Shin I assume you had an autocorrect error and you meant listing agreement. Are you trying to buy this? If so what was your offer and Can you buy it?

Agree that an REO agent is not generally the best agent for a regular listing. I have no idea what the value is, but she she needs to ask something reasonable to get it done quick. Also, as @Tom Gimer if there is any question about a POA floating around she needs to revoke it and record it.

If this property gets listed with a broker, regardless of how it sells (unless foreclosed) then ~$50k+ will more than likely be going to that broker. So if you have some creative solution... allowing it to be listed certainly doesn't help your cause.

There are lots of options here now that the auction sale has been postponed. I would partner up with somebody and figure it out.

@Tom Gimer @Wayne Brooks What would've been the best way to approach this situation? I got involved the day before auction and now its been pushed back 2 months. The REO agent says list at 1.5M when the original agent wanted to sell for 850K. Wasnt listed on the MLS
@Tom Gimer for this situation, im collecting a fee for this referral to the agent. Are you suggesting I should've brought this deal to another investor and split the profits that way?
Originally posted by @Alex Shin :
@Tom Gimer for this situation, im collecting a fee for this referral to the agent. Are you suggesting I should've brought this deal to another investor and split the profits that way?

There is so much more potential $ in this deal than a referral fee... which unless you are licensed is likely illegal anyway... so yes, that is exactly what I am saying. 

@Tom Gimer or more specifically should carry around contracts in my car for the off chance of this happening again and get the owner to sign my contract. Then take that signed contract to another investor who can take on this kind of project. They finance 100% as well? And THEN we split 50/50?? If I'm just bringing the deal to the table am I not wholesaling it out essentially? Basically for an assignment fee?

@Alex Shin A few things that confuse me about the situation:

1. Why did the sale get postponed?

2. How is the son and the POA involved? Is this woman you've been talking to the owner of record? Is it a trust? If it's a trust, is she the only trustee who can bind this property with a sales contract?

3. Is the REO agent your friend or colleague that you're partnering up with? A referral fee is a not a bad way to go since you have a lot lower risk and it sounds like you might need to learn more before taking on a project of this size, no offense intended.

4. As Wayne mentioned, time is of the essence since this is a distressed sale with an upcoming sale date. I wonder why the REO agent wants to list for $1.5 M when the other one said $850k. That's a huge difference and these higher priced properties take more time to sell under ordinary circumstances

@Andy Mirza Basic comps in this part of town of silverlake go for mid millions. It seems like the first agent has an off market buyer such as another investor who put in an offer at 850K or is an investor herself. The property wasnt listed on the MLS and the agent didnt have the owners interests in mind. I had to flip it over to a person who could've handled the situation better than I since this was my first 'kinda deal'. I dont know if the owner did sign over a POA and that's why I'm concerned as this may turn into a bigger mess than it already is. And a majority of auctions get postponed. I actually went to the one that it was supposed to auctioned off at and a good 80% were pushed back for a multitude of reasons