All Forum Posts by: Ryan D

Hey guys thanks for the great responses. This is my first investment property and I'm not too familiar with REO deals. I noticed that both of you mentioned that some properties don't even make it on the market. I thought that was a rare occurrence b/c from what I have learned, banks don't usually talk with/sell directly to people like me "behind the scenes". That being said, would it be worth it for me (first time investor) to try and contact the bank?

Okay I realize this is probably a hard question to answer... Lets assume everything goes smoothly, how long before a REO property gets listed? It was bought by the bank at auction on april 6. Is there a ballpark estimate anyone can give me? I figured it might show up on the market any time now. It has been almost 3 months since the auction. Maybe a best case and wost case scenario would give me a good idea. Ideally from someone who has experience with this type of situation. Thanks!

Thanks Will that was very helpful! What is a BPO/BPO approval?

Hey Corey thanks for the insight... I talked with an attorney today who gave me some inside info on the property. The house was bought by the bank for 13K at auction. There were no other bidders. If there were any other bidders, the bank would have let it go for 35K. There is 76K of outstanding mortgage debt and the market value is 46K. Any thoughts on what I should offer? The attorney said banks usually sell for market value. However, I'm not sure where they got the market value number b/c the county website has it listed at 70K and I got an appraisal about 6 months ago for 90K. Is there a chance the bank will get an appraisal and realize their "market value" is way off? If not I can get a hell of a deal on this property should I be able to purchase it for 46K. That would be a pretty big loss for the bank though (30K), but I guess maybe they probably have bigger problems to worry about.

I'm interested in purchasing a REO. I live down the street and have been following the foreclosure process closely for the past 6 months. It was just purchased by the bank at a sheriff sale on April 6. The attorney representing the bank asked that I send him a letter expressing my interest in the property. I am hoping that by sending this letter, the bank will realize it would be in their best interest to work with me instead of putting it on the market and letting it sit/depreciate as time progresses. Any input on what I should or shouldn't say? Or how much I should say? I assume at this point I should keep things brief.

Also, at some point, would the bank allow me to do a walk through? The property is bought as is in this situation right? It is my understanding that I cannot ask the bank to fix something if the prior owners trashed it. Is that correct?

Hey guys thanks for the input. My situation is similar to yours Corey. I originally found this house back in August 2008 on craigslist. It was a FSBO so I was working directly with the owner and my attorney. The owner was very dishonest and eventually my attorney flushed everything out. When all was said and done, based on the "deal" she made with me, she needed about $9K (mortage debt/back taxes/etc) extra to close. Obviously she didn't have this extra cash lying around, so the deal fell through. She has since dropped off the face of the earth.

I have been following this property closely over the past 6 months and it was just bought by the bank April 6 at auction. I have already talked to the attorney representing the bank prior to the auction, so I have all his contact info. Should I contact him again to negotiate buying the property or do I need to get my attorney involved? I want to try and get this property ASAP as opposed to letting it sit there for months and deteriorate. It is flying under the radar right now as I imagine most people don't know as much as I do. I think this could be a good opportunity for me to buy. I have already had all my inspections done back when I was first going to buy it.

Any advice on how to proceed from here? I want to be patient but at the same time I want to get moving on this opportunity.

I am interested in purchasing a property that was recently bought at a sheriffs sale by the bank. Any advice on how to approach the bank/start negotiations? Do I need to bring in my attorney this early in the process? Should I purposely make a crazy low-ball offer to start? I have heard stories of banks taking big losses just to get properties like this off their balance sheets. Any input would be appreciates.

According to people at the sheriffs office, there are tax claims of $11,000 on the property. That is something that I would have to payoff if I were to purchase the property directly from the sheriff sale right? Also, they told me it is possible that there could be other lein(s) as well.

I am not sure if I want to call my attorney in now. I am thinking it might be better to wait (and hope) that the bank buys the property and then work with them/my attorney at that point. That way they (the bank) will have to clear all the taxes,leins, etc. Any thoughts?

A property I am interested in will be going up for sheriff sale in a few weeks. It is my understanding that if I decide to bid on the property, it will be me and somebody representing the bank bidding back and forth (and anyone else who may be interested) until the property is sold. There is a lot of outstanding debt that would tag along with this property which has me worried.

I have heard that it is possible to let the bank win the auction (assuming no one else out-bids them) and then personally work with the bank on a deal after the sheriff sale is over. It is my understanding that the bank is forced to buy the property if no one else will.

This is good for me because that way, the bank has to clear up all the outstanding debt, leins, etc. and I can basically get the property without any "baggage". Is that right? Also, it will give me the chance to walk the property, which would not be possible if I bought it directly from the sheriff sale.

Can anyone confirm if this is a viable strategy and/or clear up anything I might have wrong? I have never bought from a sheriff sale and I don't want to get in over my head. This would be a very solid investment for me, so if I can acquire the property, I will. However, I want to be sure I choose the best approach.

I am buying my first property and plan on living in it for a few years and then renting it out. There are some things that need to be done and seeing as it isn't yet a rental property, it is my primary residence, I am assuming any of the work I do is not tax deductible? Are there any specific repairs that are tax deductible? For instance, I heard that any repairs related to energy efficiency are tax deductible, such as new windows, insulation, etc. Just trying to figure out what I should do now as opposed to later in order to maximize my tax benefit.