Can you wholesale foreclosed homes?

5 Replies

@Shamere Pittman   Any offer I've ever made on a foreclosed (bank owned) home)specifically stated the contract was not assignable.  It also was the banks contract and any changes to that contract were prohibited.

- Tom

@Shamere Pittman No, you cannot wholesale them. You would need to contact the decision maker at the bank or investor to even get the property under contract and that won't happen.

Most banks use internal or 3rd party asset management companies to liquidate REOs. Once the foreclosure happens, the property is assigned to an asset manager who goes through a set process with tasks. Once they get through with their onboarding tasks, the property gets assigned to a real estate agent who will get bids from contractors, oversee the rehab, and list it for sale.  This process can take a long time, which is why you'll see these vacant homes sit for months or even years. Sometimes, it takes that long for a bank to clear a title issue for instance. They won't bother going to the next step if they can't sell it with clear title. Typically, the contracts that the bank uses will not allow the assignment of the purchase agreement.

If a note investor foreclosed, more than likely they'll want to sell for top dollar so they'll sell it themselves or use their own procedure. You might get lucky and find the one that will let you wholesale their REO but there's an extremely slim chance of that happening.

(I don't mean to be negative but this is reality)