Cincinnati, OH · Member since 2013 · 9 posts · 0 votes
Help me out Bigger Pockets, recently I came across a property that foreclosed an was put up for auction nobody bidded or purchased the home. I had seen were a financial loan company held a final judgement against the property. I tried to contact the company, which is in California, the property is in Ohio, they kept sending me back an forth from the customer service department to the real estate department like a broken record. I kept explaining to them I wanted to purchase the property out right with cash an they just kept giving me the runaround. Help me out BP, is there any other way to pursue this property? Thank you Aaron
Involved In Real Estate · Pickerington, OH · Member since 2013 · 45 posts · 3 votes
13y
Aaron, get a Realtor to help you contact them and see if a purchase is possible. I would be glad to help you or refer you to another of our agents if you are not in the Columbus area.
Real Estate Investor · Greenback, TN · Member since 2012 · 268 posts · 115 votes
13y
@Aaron Beatty , I don't think the major lenders have a mechanism for doing this kind of thing. My understanding of it is that they have a long line of people in the foreclosure process that do their small part and send it on to the next person. None of them are capable (or authorized) to negotiate a direct sale. The person at the very end of the paper trail will contact a local realtor and make arrangements to sell it. I would imagine that they have rules to prevent any short cuts to the process. No one wants to stir up a stink that would attract government regulators.
Maybe you could try your local (small) banks. I don't mean the Bank of America's with a local branch but a locally owned and operated bank. If you can track down the decision-maker, they might be willing to talk about properties they have in the foreclosure pipeline. Good luck!
Cincinnati, OH · Member since 2013 · 9 posts · 0 votes
13y
Thanks Mike I appreciate that, Hey Brenda I am an Real Estate Agent as well, an that was what I was trying to tell them but if you or any of your fellow realtors have knowledge on this subject I would appreciate the information.
Send a letter to the president of the company who is the holder of the note using very professional letterhead. 24 lb. or greater would be recommended. Depending upon what you state in the letter and your perceived seriousness and ability, the letter may be passed on to a person who is in charge of disposing this asset.
Have a professionally created Internet presence. Perception is critical.
Keep in mind, they are continually receiving hundreds, if not thousands, of similar letters. They already have a list of big, liquid investors who can pay cash and close quickly. It is similar to applying for a job. You must stand out and be perceived as the best candidate to buy this instant with no contingencies - not even an inspection contingency. I recommend being an All Cash As-Is buyer with an interest in closing in a matter of weeks.
This is possible. I know it for a fact. Phone calls will almost never be successful.
Miami, FL · Member since 2012 · 612 posts · 189 votes
13y
Sorry to say but 24lb letterhead is not going to buy the house. The vast majority of REO properties are listed or will be listed with a real estate agency. Most lenders will not sell them before they go through the listing process.
Depending on the requirements in your state, the bank may have to respect the redemption period which allows the homeowner to buy back the property. The bank, or anyone who buys at an auction, cannot resell the property until the redemption period is over.
If your state has a redemption period, you best bet is to work with the original homeowner to buy back the property and then deed it over to you (usually there is some additional financial reward for the process). If that is not an option, then you may just have to keep your eye peeled for when the listing come up on the MLS.
I agree, as an REO broker the major banks do not sell REO inventory to individuals before it is listed. Most have policies that the homes must be listed on MLS for a certain amount of time before they will even look at offers. They get an appraisal and multiple BPOS to determine value and then list with an agent.
Some local banks may sell their properties before they are listed, but it is very rare.