As some folks may recall, I went after a foreclosure in RSF. I tried to get an offer in during the period where title was transferring to the bank. First, I went through the original listing agent. Then I tried the bank directly and, after much searching, found the guy at the bank who was responsible for the house and put in an offer through my agent. But then the bank signed a contract with a listing agent for the REO. That agent found out about my offer and then threatened a law suit against the original listing agent and the bank itself if it processed my offer. He insisted I go through him. So I had to wait a few weeks and then put in an offer through him and after a lot of waiting, my offer was rejected. I don’t really know if the bank ever saw it. This new listing agent was a real &#*#. Two months later this REO is still on the market and I am going nowhere near it. REO’s are huge bargains on paper, but too risky for my novice taste.
I note that I saw a foreclosure here that sold, fell out of escrow, and resold, only to see the buyer find out that the bank was happy to release its own lien on the property, but any other liens on a REO, like HOA leans, for example, are the buyer’s problem. This could add up to thousands, if not tens of thousands of dollars. I speculate that a second mortgage from another bank would also mean you have to negotiate with the second lender as well, even if it is a subordinated lien holder.
