Folsom, CA · Member since 2013 · 10 posts · 0 votes
I'd like to start by saying how impressed I am with biggerpockets, just the truth there, it's a great site and laid out well.
I know of a commercial property that is approaching foreclosure, the bank has possession, the tenants are scared, it's 95% occupied.
What would a good list of things-to-do from the start be? Where can I go for the right information at this point and in the future? How can I get the jump on this one? What should I watch out for?
I have some information on the property, I would love to own this, it's not huge but a good location; well maintained; professional complex; California location.
Much appreciated. This would be my first project of this nature. Even
Phoenix, AZ · Member since 2013 · 76 posts · 35 votes
13y
Troy:
Excuse the assumptions; but, I would suggest that if the bank has possession, there may be a receiver in place, or the parties have agreed to the bank taking "control.". Court documents, or a call to the bank's REO department might get you to the person/persons to speak with concerning your interest in purchasing the asset.
You may be able to purchase the note prior to foreclosure, or purchase directly from the bank post foreclosure.
I worked for a California bank back in the RTC days and handled their REO portfolio in AZ. Back then, properties going through the foreclosure process were on a "watch list." Many things can happen prior to the trustee's sale, including a work-out, refinance, note sale, shortsale, white knight, deed in lieu, bankruptcy, etc..; so, I'd make some quick calls to see if the bank is interested in speaking with you about the asset. I'm not an expert on lender liability; but, would hazard a guess that the bank will not take any action that could be construed as detrimental to the mortgagor without foreclosing first.
As to the tenants, I'm sorry to hear that no one has explained what's going on to them. As a receiver, this is the first thing that I would take care of. 95% can easily go to 50% if the tenants do not know what's going on.