Does anyone out there purchase houses direct from the lender after they are auctioned at the courthouse steps but before they are turned over to the Realtor? I have just started sending a fax and email offer letter to the lender the morning after the auction. I also fax the foreclosing attorney. I just started so I don't have results to share with the forum. If anyone is presently doing this can you share some advice or experiences with me. I am interested in individual properties that I can pay all cash for and not multiple million dollar bulk packages. Since I don't have multi millions!
Tyler, TX · Member since 2008 · 69 posts · 0 votes
19y
You are trying to displace some big companies that are very embedded in the industry. It took us almost three years before we really started moving using that model...I wouldnt advise that approach. Instead, talk to them and see what they are having problems moving...they have a contract to move the inventory in a certain timeframe. thats the best bet to get a good deal.
Real Estate Investor · AL · Member since 2008 · 131 posts · 1 vote
19y
Originally posted by "troypknutson":
You are trying to displace some big companies that are very embedded in the industry. It took us almost three years before we really started moving using that model...I wouldnt advise that approach. Instead, talk to them and see what they are having problems moving...they have a contract to move the inventory in a certain timeframe. thats the best bet to get a good deal.
Sounds like you're afraid of a bit of competition, lol. Good advice, though.
Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
19y
1. Some of the time a lender will deal direct. Most investors who did such a deal were somehow involved in the auction process and agreed a deal immediately after the auction failed to produce a result.
2. Some lenders have a standard process and they would rather stick to it. They want to avoid having a process that is subject to abuse (playing favorites).
3. I know of one deal where the banker came to the investor with an REO they wanted off their books before the end of the fiscal year. A 1-off deal. The banker already knew the buyer. They were shopping for a solution rather than doing this as a standard process.
Expect it will take some time to see which banks deal before bringing in an agent. Also expect that many banks already had an agent involved before the auction (BPO or other services) so they might not have much interest in doing deals before a full listing. Best price vs. quickest deal.