Buying a foreclosed property

[SD Realtor]

Sorry Raptor I am freeking swamped right now. I have no clue why….

If it has not gone to the bank yet then ask your agent to contact the owner and basically send them a letter of intent. Is the home on the MLS (or was it on the MLS?) or is it just a home that is in distress and you have been hawking it. The situation may present an opportunity for you to assume the loan or something of that nature. I guess my answer would depend a little bit more on the details of the situation.

Regardless, contacting the owner is the first thing to do IF THE OWNER IS NOT REPRESENTED. Otherwise contact the agent.

A few months back Asianautica spied a NOD and knew it was one that may interest me. I ended up going to the guys home… left him notes… tried to call him… finally I found out where he worked and went to the store he owned and met him. I know that all sounds kind of stalking like but most people in distress are reclusive because of bill collectors and such. So I wanted him to know I wasn’t anything like that. Well he was actually pretty good about all that but ended up curing his default. Anyways that was my short story.

As far as your agent goes. It is a sticky one. Depends on what sort of nomenclature you have used in your representation agreement with him/her.

Where in the default process are they? As long as the owner is still on title you deal with the owner first. Then you may be able to work with someone in the loan workout group if things move forward.

SD Realtor

[raptorduck]

Thanks. It was on MLS and then dissappared some time back so I stopped thinking about it. I had been asking my agent to dig to find out why and after all this time it looks like it is now going into foreclosure. We did contact the selling agent and they are contacting the bank, but I wanted to know how to go about all this.

If the foreclosure process is not done yet, then it is a short sale offer and I know the pains related to that. If it is in foreclosure, that is where I am more at a loss as to what I can do and how I should do it.

I don’t want to cut my agent out of any possible commission even with a foreclosure, but don’t know how that works. If the bank won’t pay her commission from the proceeds, then I would have to write her a six figure check myself?

[raptorduck]

Thanks. It was on MLS and then dissappared some time back so I stopped thinking about it. I had been asking my agent to dig to find out why and after all this time it looks like it is now going into foreclosure. We did contact the selling agent and they are contacting the bank, but I wanted to know how to go about all this.

If the foreclosure process is not done yet, then it is a short sale offer and I know the pains related to that. If it is in foreclosure, that is where I am more at a loss as to what I can do and how I should do it.

I don’t want to cut my agent out of any possible commission even with a foreclosure, but don’t know how that works. If the bank won’t pay her commission from the proceeds, then I would have to write her a six figure check myself?

[raptorduck]

Thanks. It was on MLS and then dissappared some time back so I stopped thinking about it. I had been asking my agent to dig to find out why and after all this time it looks like it is now going into foreclosure. We did contact the selling agent and they are contacting the bank, but I wanted to know how to go about all this.

If the foreclosure process is not done yet, then it is a short sale offer and I know the pains related to that. If it is in foreclosure, that is where I am more at a loss as to what I can do and how I should do it.

I don’t want to cut my agent out of any possible commission even with a foreclosure, but don’t know how that works. If the bank won’t pay her commission from the proceeds, then I would have to write her a six figure check myself?

[raptorduck]

Thanks. It was on MLS and then dissappared some time back so I stopped thinking about it. I had been asking my agent to dig to find out why and after all this time it looks like it is now going into foreclosure. We did contact the selling agent and they are contacting the bank, but I wanted to know how to go about all this.

If the foreclosure process is not done yet, then it is a short sale offer and I know the pains related to that. If it is in foreclosure, that is where I am more at a loss as to what I can do and how I should do it.

I don’t want to cut my agent out of any possible commission even with a foreclosure, but don’t know how that works. If the bank won’t pay her commission from the proceeds, then I would have to write her a six figure check myself?

[raptorduck]

Thanks. It was on MLS and then dissappared some time back so I stopped thinking about it. I had been asking my agent to dig to find out why and after all this time it looks like it is now going into foreclosure. We did contact the selling agent and they are contacting the bank, but I wanted to know how to go about all this.

If the foreclosure process is not done yet, then it is a short sale offer and I know the pains related to that. If it is in foreclosure, that is where I am more at a loss as to what I can do and how I should do it.

I don’t want to cut my agent out of any possible commission even with a foreclosure, but don’t know how that works. If the bank won’t pay her commission from the proceeds, then I would have to write her a six figure check myself?

[SD Realtor]

If it is in the foreclosure process then yeah it would be a short sale. Yes this is a chore of a process but note that once the trustee sale occurs and the lender becomes the owner, the lender will need to get the owner out of there, then get it BPO’d and back on the market. It will be listed with a different broker.

It may actually be worth the effort to go for a short sale. The effort is much less on your part then it will be on the sellers part. For you it will be write it up and wait. Whether the seller will want to go through the chores of submitting the short sale package is another issue. Have your agent contact the old listing agent and run the idea by them. It couldn’t hurt. At least you would be the only buyer. Once it goes REO you can always submit another offer then anyways.

SD Realtor

[SD Realtor]

If it is in the foreclosure process then yeah it would be a short sale. Yes this is a chore of a process but note that once the trustee sale occurs and the lender becomes the owner, the lender will need to get the owner out of there, then get it BPO’d and back on the market. It will be listed with a different broker.

It may actually be worth the effort to go for a short sale. The effort is much less on your part then it will be on the sellers part. For you it will be write it up and wait. Whether the seller will want to go through the chores of submitting the short sale package is another issue. Have your agent contact the old listing agent and run the idea by them. It couldn’t hurt. At least you would be the only buyer. Once it goes REO you can always submit another offer then anyways.

SD Realtor

[SD Realtor]

If it is in the foreclosure process then yeah it would be a short sale. Yes this is a chore of a process but note that once the trustee sale occurs and the lender becomes the owner, the lender will need to get the owner out of there, then get it BPO’d and back on the market. It will be listed with a different broker.

It may actually be worth the effort to go for a short sale. The effort is much less on your part then it will be on the sellers part. For you it will be write it up and wait. Whether the seller will want to go through the chores of submitting the short sale package is another issue. Have your agent contact the old listing agent and run the idea by them. It couldn’t hurt. At least you would be the only buyer. Once it goes REO you can always submit another offer then anyways.

SD Realtor

[SD Realtor]

If it is in the foreclosure process then yeah it would be a short sale. Yes this is a chore of a process but note that once the trustee sale occurs and the lender becomes the owner, the lender will need to get the owner out of there, then get it BPO’d and back on the market. It will be listed with a different broker.

It may actually be worth the effort to go for a short sale. The effort is much less on your part then it will be on the sellers part. For you it will be write it up and wait. Whether the seller will want to go through the chores of submitting the short sale package is another issue. Have your agent contact the old listing agent and run the idea by them. It couldn’t hurt. At least you would be the only buyer. Once it goes REO you can always submit another offer then anyways.

SD Realtor

[SD Realtor]

If it is in the foreclosure process then yeah it would be a short sale. Yes this is a chore of a process but note that once the trustee sale occurs and the lender becomes the owner, the lender will need to get the owner out of there, then get it BPO’d and back on the market. It will be listed with a different broker.

It may actually be worth the effort to go for a short sale. The effort is much less on your part then it will be on the sellers part. For you it will be write it up and wait. Whether the seller will want to go through the chores of submitting the short sale package is another issue. Have your agent contact the old listing agent and run the idea by them. It couldn’t hurt. At least you would be the only buyer. Once it goes REO you can always submit another offer then anyways.

SD Realtor

[North County Jim]

Raptor,

This is very similar to our situation. We purchased a distressed property back in the fall.

The house had been in the MLS and was overpriced. The house was then pulled from the market and the owners received their NOD a month or two later. We then made an unsolicited, low ball offer directly to the owners.

To make a very long story short, we closed seven months later for less than our original offer.

My advice is for you and your agent to be extremely aggressive with the owners and noteholders.

[North County Jim]

Raptor,

This is very similar to our situation. We purchased a distressed property back in the fall.

The house had been in the MLS and was overpriced. The house was then pulled from the market and the owners received their NOD a month or two later. We then made an unsolicited, low ball offer directly to the owners.

To make a very long story short, we closed seven months later for less than our original offer.

My advice is for you and your agent to be extremely aggressive with the owners and noteholders.

[North County Jim]

Raptor,

This is very similar to our situation. We purchased a distressed property back in the fall.

The house had been in the MLS and was overpriced. The house was then pulled from the market and the owners received their NOD a month or two later. We then made an unsolicited, low ball offer directly to the owners.

To make a very long story short, we closed seven months later for less than our original offer.

My advice is for you and your agent to be extremely aggressive with the owners and noteholders.

[North County Jim]

Raptor,

This is very similar to our situation. We purchased a distressed property back in the fall.

The house had been in the MLS and was overpriced. The house was then pulled from the market and the owners received their NOD a month or two later. We then made an unsolicited, low ball offer directly to the owners.

To make a very long story short, we closed seven months later for less than our original offer.

My advice is for you and your agent to be extremely aggressive with the owners and noteholders.

[Author]

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