Got a call from a motivated seller today. He claims he got a notice that the Bank has started foreclosure on his vacant property, but never a final notice from the bank or a court hearing, etc. When I asked to see the property he stated that the bank (or someone) had changed the locks on the property and he no longer has access.
Has the bank already taken this property back? I am going to search county records to try and track it down but thought I would get some input on my next steps from the forum.
Maybe, maybe not. If the owner abandons the property banks will sometime secure the property to protect their collateral.
Jon Holdman, Flying Phoenix LLC
Ok, thanks @Jon Holdman that makes sense. I am trying to get the owner to contact the bank, but sometimes easy things are a struggle...
It will be a good short sale opportunity if I can get it to work out - if not another learning experience.
When we go out on a pre foreclosure we are generally instructed to change only 1 lock if property has been abandoned. Only after the bank has fully foreclosed is the property secured against any unwanted entry. If the contractor hired to do the job is not aware of this they might unknowingly change all locks. There should have been a posting put on a window or door for Notice of vacancy and what company is maintaining the property. Those are usually a 8 x 11" A vacancy notice could be a lot smaller piece of paper, 4"x 8". Those allow time for the owner to report to the bank that the property is still occupied. A lot depends on the state and it's laws as to the timing for notices.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!