Buying a foreclosed property

[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.

[nccoastalseller]

nccoastalseller

San Diego based website for forclosure info

http://www.foreclosureforum.com/

[nccoastalseller]

nccoastalseller

San Diego based website for forclosure info

http://www.foreclosureforum.com/

[nccoastalseller]

nccoastalseller

San Diego based website for forclosure info

http://www.foreclosureforum.com/

[nccoastalseller]

nccoastalseller

San Diego based website for forclosure info

http://www.foreclosureforum.com/

[nccoastalseller]

nccoastalseller

San Diego based website for forclosure info

http://www.foreclosureforum.com/

[NotCranky]

“Yes, it has now gone to the bank, or is in the process of going to the bank.”

There is a huge amount of variability in the strategies that you might take based on the exact situation. Basically you need to interject yourself and cure the owners problems before it goes to the trustee sale and have the owner deed the property to you before the sale occurs. As SDR has said you might assume the loan. If they are defaulting the loan probably isn’t something you want. Anyway, rates are really good you would probably just want to open an escrow, which you can do yourself and get the transaction done. You might ask your agent to do it for you on some kind of a flat fee basis if this property was not something she was in the process for procuring for you. People should always think about getting an office to do these things on a flat fee. This is task is potentiall much more more complicated than I am describing.Each situation is differnt.These are the kind of situations the “I buyforeclosure.com” people are often looking for in case the property actually has some equity.

If it goes to the trustee sale this is where you could bid cash. I am not sure if there are individuals or institutions that will front that cash or the terms by which they do it. In this world I would think there is.

Your realtor would probably be out of the picture at this point. I would be shocked if your buyer’s broker agreement said you had to compensate an agent for a purchase like this. You should probably take some classes on buying foreclosures to do this or hire a consultant. On the consultant idea take that with a grain of salt because the odds you get the property are so low you wouldn’t want to pay much for services. Google SDCIA and go to that site. Generally speaking the bloggers there are more versed on this topic. Google trustee’s sale and there is a ton of information. The most important thing is to understand is the encumbrances against the property and which ones will be wiped out by the foreclosure sale. There is a lot of leg work involved in understanding the issues with acquiring properties like this. It is risky. There may be evictions to do and vandalism to repair. The property could have hidden defects. I have not done it yet. Most segments of the market are probably not distressed enough that the benificiary, lender, is going to let an outside bidder steal a property. Before this is all over a few lucky gamblers will still some of the best deals at trustee’s sales. I think I have a handle on it enough to buy a rental or two but I probably wouldn’t stretch to a high priced property until I had some practice. We couldn’t get that much cash anyway. I think trying to get one identified property like this has very low odds. A person likely to have success with it needs to scope out 20 or so properties to bid on. I really is like a part time job.

So that leaves us with waiting for the property to go to an REO auction or the MLS which is where most average people, with regards to buying real estate, will buy distressed property. Nothing wrong with this. It is more realistic for you because the property matters as much as the deal. You need selection and probably some of the guarantees that “what you see is what you get”. I would suggest staying in this area and as always taking your time. I almost implore you to wait six months. If things have improved for you wait another six months. Anything can happen now. Big declines can happen now. Look at those big chunks down on Richs’ graphs. WOW!

One more idea. What about buying a nice house that is cheap for you, which apparently most of them are, getting back to San Diego and working on the “big score” from here. Not trying to push you to buy and you could still be thrifty for such a deal. I bet you would save enough on the purchase price of the second house to pay for the first more modest one.

I am more or less a believer that it is better to let the market do the work. You can get a better deal with less stress than trying to push too hard.It never hurts to give something a reasonable try like SDR did either.Poeple in trouble just usually aren’t in a position to give you a good deal with the houses because they are in trouble due to being over leveraged. The forclosure process wipes out junior leans and the banks are then ready to negotiate, often times below the amount of the remainder.

[NotCranky]

“Yes, it has now gone to the bank, or is in the process of going to the bank.”

There is a huge amount of variability in the strategies that you might take based on the exact situation. Basically you need to interject yourself and cure the owners problems before it goes to the trustee sale and have the owner deed the property to you before the sale occurs. As SDR has said you might assume the loan. If they are defaulting the loan probably isn’t something you want. Anyway, rates are really good you would probably just want to open an escrow, which you can do yourself and get the transaction done. You might ask your agent to do it for you on some kind of a flat fee basis if this property was not something she was in the process for procuring for you. People should always think about getting an office to do these things on a flat fee. This is task is potentiall much more more complicated than I am describing.Each situation is differnt.These are the kind of situations the “I buyforeclosure.com” people are often looking for in case the property actually has some equity.

If it goes to the trustee sale this is where you could bid cash. I am not sure if there are individuals or institutions that will front that cash or the terms by which they do it. In this world I would think there is.

Your realtor would probably be out of the picture at this point. I would be shocked if your buyer’s broker agreement said you had to compensate an agent for a purchase like this. You should probably take some classes on buying foreclosures to do this or hire a consultant. On the consultant idea take that with a grain of salt because the odds you get the property are so low you wouldn’t want to pay much for services. Google SDCIA and go to that site. Generally speaking the bloggers there are more versed on this topic. Google trustee’s sale and there is a ton of information. The most important thing is to understand is the encumbrances against the property and which ones will be wiped out by the foreclosure sale. There is a lot of leg work involved in understanding the issues with acquiring properties like this. It is risky. There may be evictions to do and vandalism to repair. The property could have hidden defects. I have not done it yet. Most segments of the market are probably not distressed enough that the benificiary, lender, is going to let an outside bidder steal a property. Before this is all over a few lucky gamblers will still some of the best deals at trustee’s sales. I think I have a handle on it enough to buy a rental or two but I probably wouldn’t stretch to a high priced property until I had some practice. We couldn’t get that much cash anyway. I think trying to get one identified property like this has very low odds. A person likely to have success with it needs to scope out 20 or so properties to bid on. I really is like a part time job.

So that leaves us with waiting for the property to go to an REO auction or the MLS which is where most average people, with regards to buying real estate, will buy distressed property. Nothing wrong with this. It is more realistic for you because the property matters as much as the deal. You need selection and probably some of the guarantees that “what you see is what you get”. I would suggest staying in this area and as always taking your time. I almost implore you to wait six months. If things have improved for you wait another six months. Anything can happen now. Big declines can happen now. Look at those big chunks down on Richs’ graphs. WOW!

One more idea. What about buying a nice house that is cheap for you, which apparently most of them are, getting back to San Diego and working on the “big score” from here. Not trying to push you to buy and you could still be thrifty for such a deal. I bet you would save enough on the purchase price of the second house to pay for the first more modest one.

I am more or less a believer that it is better to let the market do the work. You can get a better deal with less stress than trying to push too hard.It never hurts to give something a reasonable try like SDR did either.Poeple in trouble just usually aren’t in a position to give you a good deal with the houses because they are in trouble due to being over leveraged. The forclosure process wipes out junior leans and the banks are then ready to negotiate, often times below the amount of the remainder.

[NotCranky]

“Yes, it has now gone to the bank, or is in the process of going to the bank.”

There is a huge amount of variability in the strategies that you might take based on the exact situation. Basically you need to interject yourself and cure the owners problems before it goes to the trustee sale and have the owner deed the property to you before the sale occurs. As SDR has said you might assume the loan. If they are defaulting the loan probably isn’t something you want. Anyway, rates are really good you would probably just want to open an escrow, which you can do yourself and get the transaction done. You might ask your agent to do it for you on some kind of a flat fee basis if this property was not something she was in the process for procuring for you. People should always think about getting an office to do these things on a flat fee. This is task is potentiall much more more complicated than I am describing.Each situation is differnt.These are the kind of situations the “I buyforeclosure.com” people are often looking for in case the property actually has some equity.

If it goes to the trustee sale this is where you could bid cash. I am not sure if there are individuals or institutions that will front that cash or the terms by which they do it. In this world I would think there is.

Your realtor would probably be out of the picture at this point. I would be shocked if your buyer’s broker agreement said you had to compensate an agent for a purchase like this. You should probably take some classes on buying foreclosures to do this or hire a consultant. On the consultant idea take that with a grain of salt because the odds you get the property are so low you wouldn’t want to pay much for services. Google SDCIA and go to that site. Generally speaking the bloggers there are more versed on this topic. Google trustee’s sale and there is a ton of information. The most important thing is to understand is the encumbrances against the property and which ones will be wiped out by the foreclosure sale. There is a lot of leg work involved in understanding the issues with acquiring properties like this. It is risky. There may be evictions to do and vandalism to repair. The property could have hidden defects. I have not done it yet. Most segments of the market are probably not distressed enough that the benificiary, lender, is going to let an outside bidder steal a property. Before this is all over a few lucky gamblers will still some of the best deals at trustee’s sales. I think I have a handle on it enough to buy a rental or two but I probably wouldn’t stretch to a high priced property until I had some practice. We couldn’t get that much cash anyway. I think trying to get one identified property like this has very low odds. A person likely to have success with it needs to scope out 20 or so properties to bid on. I really is like a part time job.

So that leaves us with waiting for the property to go to an REO auction or the MLS which is where most average people, with regards to buying real estate, will buy distressed property. Nothing wrong with this. It is more realistic for you because the property matters as much as the deal. You need selection and probably some of the guarantees that “what you see is what you get”. I would suggest staying in this area and as always taking your time. I almost implore you to wait six months. If things have improved for you wait another six months. Anything can happen now. Big declines can happen now. Look at those big chunks down on Richs’ graphs. WOW!

One more idea. What about buying a nice house that is cheap for you, which apparently most of them are, getting back to San Diego and working on the “big score” from here. Not trying to push you to buy and you could still be thrifty for such a deal. I bet you would save enough on the purchase price of the second house to pay for the first more modest one.

I am more or less a believer that it is better to let the market do the work. You can get a better deal with less stress than trying to push too hard.It never hurts to give something a reasonable try like SDR did either.Poeple in trouble just usually aren’t in a position to give you a good deal with the houses because they are in trouble due to being over leveraged. The forclosure process wipes out junior leans and the banks are then ready to negotiate, often times below the amount of the remainder.

[NotCranky]

“Yes, it has now gone to the bank, or is in the process of going to the bank.”

There is a huge amount of variability in the strategies that you might take based on the exact situation. Basically you need to interject yourself and cure the owners problems before it goes to the trustee sale and have the owner deed the property to you before the sale occurs. As SDR has said you might assume the loan. If they are defaulting the loan probably isn’t something you want. Anyway, rates are really good you would probably just want to open an escrow, which you can do yourself and get the transaction done. You might ask your agent to do it for you on some kind of a flat fee basis if this property was not something she was in the process for procuring for you. People should always think about getting an office to do these things on a flat fee. This is task is potentiall much more more complicated than I am describing.Each situation is differnt.These are the kind of situations the “I buyforeclosure.com” people are often looking for in case the property actually has some equity.

If it goes to the trustee sale this is where you could bid cash. I am not sure if there are individuals or institutions that will front that cash or the terms by which they do it. In this world I would think there is.

Your realtor would probably be out of the picture at this point. I would be shocked if your buyer’s broker agreement said you had to compensate an agent for a purchase like this. You should probably take some classes on buying foreclosures to do this or hire a consultant. On the consultant idea take that with a grain of salt because the odds you get the property are so low you wouldn’t want to pay much for services. Google SDCIA and go to that site. Generally speaking the bloggers there are more versed on this topic. Google trustee’s sale and there is a ton of information. The most important thing is to understand is the encumbrances against the property and which ones will be wiped out by the foreclosure sale. There is a lot of leg work involved in understanding the issues with acquiring properties like this. It is risky. There may be evictions to do and vandalism to repair. The property could have hidden defects. I have not done it yet. Most segments of the market are probably not distressed enough that the benificiary, lender, is going to let an outside bidder steal a property. Before this is all over a few lucky gamblers will still some of the best deals at trustee’s sales. I think I have a handle on it enough to buy a rental or two but I probably wouldn’t stretch to a high priced property until I had some practice. We couldn’t get that much cash anyway. I think trying to get one identified property like this has very low odds. A person likely to have success with it needs to scope out 20 or so properties to bid on. I really is like a part time job.

So that leaves us with waiting for the property to go to an REO auction or the MLS which is where most average people, with regards to buying real estate, will buy distressed property. Nothing wrong with this. It is more realistic for you because the property matters as much as the deal. You need selection and probably some of the guarantees that “what you see is what you get”. I would suggest staying in this area and as always taking your time. I almost implore you to wait six months. If things have improved for you wait another six months. Anything can happen now. Big declines can happen now. Look at those big chunks down on Richs’ graphs. WOW!

One more idea. What about buying a nice house that is cheap for you, which apparently most of them are, getting back to San Diego and working on the “big score” from here. Not trying to push you to buy and you could still be thrifty for such a deal. I bet you would save enough on the purchase price of the second house to pay for the first more modest one.

I am more or less a believer that it is better to let the market do the work. You can get a better deal with less stress than trying to push too hard.It never hurts to give something a reasonable try like SDR did either.Poeple in trouble just usually aren’t in a position to give you a good deal with the houses because they are in trouble due to being over leveraged. The forclosure process wipes out junior leans and the banks are then ready to negotiate, often times below the amount of the remainder.

[NotCranky]

“Yes, it has now gone to the bank, or is in the process of going to the bank.”

There is a huge amount of variability in the strategies that you might take based on the exact situation. Basically you need to interject yourself and cure the owners problems before it goes to the trustee sale and have the owner deed the property to you before the sale occurs. As SDR has said you might assume the loan. If they are defaulting the loan probably isn’t something you want. Anyway, rates are really good you would probably just want to open an escrow, which you can do yourself and get the transaction done. You might ask your agent to do it for you on some kind of a flat fee basis if this property was not something she was in the process for procuring for you. People should always think about getting an office to do these things on a flat fee. This is task is potentiall much more more complicated than I am describing.Each situation is differnt.These are the kind of situations the “I buyforeclosure.com” people are often looking for in case the property actually has some equity.

If it goes to the trustee sale this is where you could bid cash. I am not sure if there are individuals or institutions that will front that cash or the terms by which they do it. In this world I would think there is.

Your realtor would probably be out of the picture at this point. I would be shocked if your buyer’s broker agreement said you had to compensate an agent for a purchase like this. You should probably take some classes on buying foreclosures to do this or hire a consultant. On the consultant idea take that with a grain of salt because the odds you get the property are so low you wouldn’t want to pay much for services. Google SDCIA and go to that site. Generally speaking the bloggers there are more versed on this topic. Google trustee’s sale and there is a ton of information. The most important thing is to understand is the encumbrances against the property and which ones will be wiped out by the foreclosure sale. There is a lot of leg work involved in understanding the issues with acquiring properties like this. It is risky. There may be evictions to do and vandalism to repair. The property could have hidden defects. I have not done it yet. Most segments of the market are probably not distressed enough that the benificiary, lender, is going to let an outside bidder steal a property. Before this is all over a few lucky gamblers will still some of the best deals at trustee’s sales. I think I have a handle on it enough to buy a rental or two but I probably wouldn’t stretch to a high priced property until I had some practice. We couldn’t get that much cash anyway. I think trying to get one identified property like this has very low odds. A person likely to have success with it needs to scope out 20 or so properties to bid on. I really is like a part time job.

So that leaves us with waiting for the property to go to an REO auction or the MLS which is where most average people, with regards to buying real estate, will buy distressed property. Nothing wrong with this. It is more realistic for you because the property matters as much as the deal. You need selection and probably some of the guarantees that “what you see is what you get”. I would suggest staying in this area and as always taking your time. I almost implore you to wait six months. If things have improved for you wait another six months. Anything can happen now. Big declines can happen now. Look at those big chunks down on Richs’ graphs. WOW!

One more idea. What about buying a nice house that is cheap for you, which apparently most of them are, getting back to San Diego and working on the “big score” from here. Not trying to push you to buy and you could still be thrifty for such a deal. I bet you would save enough on the purchase price of the second house to pay for the first more modest one.

I am more or less a believer that it is better to let the market do the work. You can get a better deal with less stress than trying to push too hard.It never hurts to give something a reasonable try like SDR did either.Poeple in trouble just usually aren’t in a position to give you a good deal with the houses because they are in trouble due to being over leveraged. The forclosure process wipes out junior leans and the banks are then ready to negotiate, often times below the amount of the remainder.

[raptorduck]

Thanks guys for the great advice! I will let you know what happens with this one.

[raptorduck]

Thanks guys for the great advice! I will let you know what happens with this one.

[raptorduck]

Thanks guys for the great advice! I will let you know what happens with this one.

[raptorduck]

Thanks guys for the great advice! I will let you know what happens with this one.

[Author]

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