Investing in foreclosures

[SD Realtor]

In reference to a posting about trustee sales (auctions) made less then two weeks ago:

Submitted by urbanrealtor on July 31, 2008 – 11:20pm.

Not to be a tool but why would anyone want to?

I have not been to one but really, it has been my understanding that generally the bidding starts at the price of the defaulted loan.

Unless a place is truly right side up (which seems rare these days), most auctions seem like a bad idea. There is no title insurance that I am aware of or any inspection regarding liens or condition.

Let me know if I am wrong. This is just my understanding.

************

Apparently you have changed your mind about things in the last 11 days.

************

zk – regarding trustee sales. Most of the people involved with them are professionals. Market value is an easy determination. Obviously lenders are starting initial bids below default amounts because of depreciating market values. Trickier aspects to the trustee sales involve issues with title. Here is where you need to do most of your homework and it pays for you to work with a title officer to dig up all the information you can with regards to title. Other risks may be mitigated with alot of legwork. Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence. Never be afraid to go to the home you are interested and knock on the door to try to make contact with the owner. If they are still there you may want to offer them a small fee in order to procure some time to set up some inspections. Maybe it happens, maybe it does not. If they are not there, then trying to have your title officer help you get in touch with the lender or contact who can get you in is something to try as well. Again, no rush here, you have a few years to polish your skills. Alot of diligence and legwork can score you a good deal.

[urbanrealtor]

Yes, Yoda, you are correct (thats why I call you that).

I have been hearing different things of late.

What are some of things you have been hearing?

Or anybody.

Are buyers or investors having better luck these days?

Its still all anecdotal but I would like to hear some actual first-hand accounts.
Right now I am getting it all 3rd hand.

Sound off.

[urbanrealtor]

Yes, Yoda, you are correct (thats why I call you that).

I have been hearing different things of late.

What are some of things you have been hearing?

Or anybody.

Are buyers or investors having better luck these days?

Its still all anecdotal but I would like to hear some actual first-hand accounts.
Right now I am getting it all 3rd hand.

Sound off.

[urbanrealtor]

Yes, Yoda, you are correct (thats why I call you that).

I have been hearing different things of late.

What are some of things you have been hearing?

Or anybody.

Are buyers or investors having better luck these days?

Its still all anecdotal but I would like to hear some actual first-hand accounts.
Right now I am getting it all 3rd hand.

Sound off.

[urbanrealtor]

Yes, Yoda, you are correct (thats why I call you that).

I have been hearing different things of late.

What are some of things you have been hearing?

Or anybody.

Are buyers or investors having better luck these days?

Its still all anecdotal but I would like to hear some actual first-hand accounts.
Right now I am getting it all 3rd hand.

Sound off.

[urbanrealtor]

Yes, Yoda, you are correct (thats why I call you that).

I have been hearing different things of late.

What are some of things you have been hearing?

Or anybody.

Are buyers or investors having better luck these days?

Its still all anecdotal but I would like to hear some actual first-hand accounts.
Right now I am getting it all 3rd hand.

Sound off.

[zk]

[quote=SD Realtor]
zk – regarding trustee sales. Most of the people involved with them are professionals. Market value is an easy determination. Obviously lenders are starting initial bids below default amounts because of depreciating market values. Trickier aspects to the trustee sales involve issues with title. Here is where you need to do most of your homework and it pays for you to work with a title officer to dig up all the information you can with regards to title. Other risks may be mitigated with alot of legwork. Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence. Never be afraid to go to the home you are interested and knock on the door to try to make contact with the owner. If they are still there you may want to offer them a small fee in order to procure some time to set up some inspections. Maybe it happens, maybe it does not. If they are not there, then trying to have your title officer help you get in touch with the lender or contact who can get you in is something to try as well. Again, no rush here, you have a few years to polish your skills. Alot of diligence and legwork can score you a good deal. [/quote]

SDR and ur, I appreciate the suggestions regarding trustee sales. I like the suggestion about contacting the owner. A couple questions regarding title issues:

So, trustees have the option of selling at the trustee sale for less than the amount of the first? Is that right? I thought the opening bid had to be “a penny over” the amount of the debt (on the first). Is it just the opening bid that must be exceeded? Do they set an opening bid amount of their choosing based on their desire to get rid of the property?

Second question: I can’t imagine plunking down six figures for something without some assurance that I’m aware of all liens and title issues. One would obviously hate to get an expensive surprise in that situation. I’m sure I’ll learn all about checking for any liens or title issues that might exist. I guess my question is, why am I working with a title officer? Do they have access to something I don’t, or just the experience to catch something I might miss? I have two issues with this, either or both of which I could be completely amiss about. First, I’m having a hard time seeing that it might be so complicated that it’s something I won’t be able to do myself. I’m fairly not unbright (and modest) and I work very hard. Of course, at the beginning, I’ll have no experience, so there is that. Second, if I can’t get title insurance, I might have a hard time trusting somebody else to ensure that I’m not going to get a very large surprise at a very bad time. I don’t know if I’d be able to sleep unless I did it myself.

Thanks for your expertise.

[zk]

[quote=SD Realtor]
zk – regarding trustee sales. Most of the people involved with them are professionals. Market value is an easy determination. Obviously lenders are starting initial bids below default amounts because of depreciating market values. Trickier aspects to the trustee sales involve issues with title. Here is where you need to do most of your homework and it pays for you to work with a title officer to dig up all the information you can with regards to title. Other risks may be mitigated with alot of legwork. Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence. Never be afraid to go to the home you are interested and knock on the door to try to make contact with the owner. If they are still there you may want to offer them a small fee in order to procure some time to set up some inspections. Maybe it happens, maybe it does not. If they are not there, then trying to have your title officer help you get in touch with the lender or contact who can get you in is something to try as well. Again, no rush here, you have a few years to polish your skills. Alot of diligence and legwork can score you a good deal. [/quote]

SDR and ur, I appreciate the suggestions regarding trustee sales. I like the suggestion about contacting the owner. A couple questions regarding title issues:

So, trustees have the option of selling at the trustee sale for less than the amount of the first? Is that right? I thought the opening bid had to be “a penny over” the amount of the debt (on the first). Is it just the opening bid that must be exceeded? Do they set an opening bid amount of their choosing based on their desire to get rid of the property?

Second question: I can’t imagine plunking down six figures for something without some assurance that I’m aware of all liens and title issues. One would obviously hate to get an expensive surprise in that situation. I’m sure I’ll learn all about checking for any liens or title issues that might exist. I guess my question is, why am I working with a title officer? Do they have access to something I don’t, or just the experience to catch something I might miss? I have two issues with this, either or both of which I could be completely amiss about. First, I’m having a hard time seeing that it might be so complicated that it’s something I won’t be able to do myself. I’m fairly not unbright (and modest) and I work very hard. Of course, at the beginning, I’ll have no experience, so there is that. Second, if I can’t get title insurance, I might have a hard time trusting somebody else to ensure that I’m not going to get a very large surprise at a very bad time. I don’t know if I’d be able to sleep unless I did it myself.

Thanks for your expertise.

[zk]

[quote=SD Realtor]
zk – regarding trustee sales. Most of the people involved with them are professionals. Market value is an easy determination. Obviously lenders are starting initial bids below default amounts because of depreciating market values. Trickier aspects to the trustee sales involve issues with title. Here is where you need to do most of your homework and it pays for you to work with a title officer to dig up all the information you can with regards to title. Other risks may be mitigated with alot of legwork. Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence. Never be afraid to go to the home you are interested and knock on the door to try to make contact with the owner. If they are still there you may want to offer them a small fee in order to procure some time to set up some inspections. Maybe it happens, maybe it does not. If they are not there, then trying to have your title officer help you get in touch with the lender or contact who can get you in is something to try as well. Again, no rush here, you have a few years to polish your skills. Alot of diligence and legwork can score you a good deal. [/quote]

SDR and ur, I appreciate the suggestions regarding trustee sales. I like the suggestion about contacting the owner. A couple questions regarding title issues:

So, trustees have the option of selling at the trustee sale for less than the amount of the first? Is that right? I thought the opening bid had to be “a penny over” the amount of the debt (on the first). Is it just the opening bid that must be exceeded? Do they set an opening bid amount of their choosing based on their desire to get rid of the property?

Second question: I can’t imagine plunking down six figures for something without some assurance that I’m aware of all liens and title issues. One would obviously hate to get an expensive surprise in that situation. I’m sure I’ll learn all about checking for any liens or title issues that might exist. I guess my question is, why am I working with a title officer? Do they have access to something I don’t, or just the experience to catch something I might miss? I have two issues with this, either or both of which I could be completely amiss about. First, I’m having a hard time seeing that it might be so complicated that it’s something I won’t be able to do myself. I’m fairly not unbright (and modest) and I work very hard. Of course, at the beginning, I’ll have no experience, so there is that. Second, if I can’t get title insurance, I might have a hard time trusting somebody else to ensure that I’m not going to get a very large surprise at a very bad time. I don’t know if I’d be able to sleep unless I did it myself.

Thanks for your expertise.

[zk]

[quote=SD Realtor]
zk – regarding trustee sales. Most of the people involved with them are professionals. Market value is an easy determination. Obviously lenders are starting initial bids below default amounts because of depreciating market values. Trickier aspects to the trustee sales involve issues with title. Here is where you need to do most of your homework and it pays for you to work with a title officer to dig up all the information you can with regards to title. Other risks may be mitigated with alot of legwork. Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence. Never be afraid to go to the home you are interested and knock on the door to try to make contact with the owner. If they are still there you may want to offer them a small fee in order to procure some time to set up some inspections. Maybe it happens, maybe it does not. If they are not there, then trying to have your title officer help you get in touch with the lender or contact who can get you in is something to try as well. Again, no rush here, you have a few years to polish your skills. Alot of diligence and legwork can score you a good deal. [/quote]

SDR and ur, I appreciate the suggestions regarding trustee sales. I like the suggestion about contacting the owner. A couple questions regarding title issues:

So, trustees have the option of selling at the trustee sale for less than the amount of the first? Is that right? I thought the opening bid had to be “a penny over” the amount of the debt (on the first). Is it just the opening bid that must be exceeded? Do they set an opening bid amount of their choosing based on their desire to get rid of the property?

Second question: I can’t imagine plunking down six figures for something without some assurance that I’m aware of all liens and title issues. One would obviously hate to get an expensive surprise in that situation. I’m sure I’ll learn all about checking for any liens or title issues that might exist. I guess my question is, why am I working with a title officer? Do they have access to something I don’t, or just the experience to catch something I might miss? I have two issues with this, either or both of which I could be completely amiss about. First, I’m having a hard time seeing that it might be so complicated that it’s something I won’t be able to do myself. I’m fairly not unbright (and modest) and I work very hard. Of course, at the beginning, I’ll have no experience, so there is that. Second, if I can’t get title insurance, I might have a hard time trusting somebody else to ensure that I’m not going to get a very large surprise at a very bad time. I don’t know if I’d be able to sleep unless I did it myself.

Thanks for your expertise.

[zk]

[quote=SD Realtor]
zk – regarding trustee sales. Most of the people involved with them are professionals. Market value is an easy determination. Obviously lenders are starting initial bids below default amounts because of depreciating market values. Trickier aspects to the trustee sales involve issues with title. Here is where you need to do most of your homework and it pays for you to work with a title officer to dig up all the information you can with regards to title. Other risks may be mitigated with alot of legwork. Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence. Never be afraid to go to the home you are interested and knock on the door to try to make contact with the owner. If they are still there you may want to offer them a small fee in order to procure some time to set up some inspections. Maybe it happens, maybe it does not. If they are not there, then trying to have your title officer help you get in touch with the lender or contact who can get you in is something to try as well. Again, no rush here, you have a few years to polish your skills. Alot of diligence and legwork can score you a good deal. [/quote]

SDR and ur, I appreciate the suggestions regarding trustee sales. I like the suggestion about contacting the owner. A couple questions regarding title issues:

So, trustees have the option of selling at the trustee sale for less than the amount of the first? Is that right? I thought the opening bid had to be “a penny over” the amount of the debt (on the first). Is it just the opening bid that must be exceeded? Do they set an opening bid amount of their choosing based on their desire to get rid of the property?

Second question: I can’t imagine plunking down six figures for something without some assurance that I’m aware of all liens and title issues. One would obviously hate to get an expensive surprise in that situation. I’m sure I’ll learn all about checking for any liens or title issues that might exist. I guess my question is, why am I working with a title officer? Do they have access to something I don’t, or just the experience to catch something I might miss? I have two issues with this, either or both of which I could be completely amiss about. First, I’m having a hard time seeing that it might be so complicated that it’s something I won’t be able to do myself. I’m fairly not unbright (and modest) and I work very hard. Of course, at the beginning, I’ll have no experience, so there is that. Second, if I can’t get title insurance, I might have a hard time trusting somebody else to ensure that I’m not going to get a very large surprise at a very bad time. I don’t know if I’d be able to sleep unless I did it myself.

Thanks for your expertise.

[gn]

[quote=SD Realtor]Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence.[/quote]

One of the risks in buying REO properties is the lack of disclosures, which can mask certain problems:

– Molds (because the previous owners were angry & flood the house by leaving the faucets running).
– Structural issues with the property.

Can one hire an inspector to detect these problems before making an offer ?
Which physical problems cannot be detected or very difficult to detect ?

[gn]

[quote=SD Realtor]Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence.[/quote]

One of the risks in buying REO properties is the lack of disclosures, which can mask certain problems:

– Molds (because the previous owners were angry & flood the house by leaving the faucets running).
– Structural issues with the property.

Can one hire an inspector to detect these problems before making an offer ?
Which physical problems cannot be detected or very difficult to detect ?

[gn]

[quote=SD Realtor]Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence.[/quote]

One of the risks in buying REO properties is the lack of disclosures, which can mask certain problems:

– Molds (because the previous owners were angry & flood the house by leaving the faucets running).
– Structural issues with the property.

Can one hire an inspector to detect these problems before making an offer ?
Which physical problems cannot be detected or very difficult to detect ?

[gn]

[quote=SD Realtor]Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence.[/quote]

One of the risks in buying REO properties is the lack of disclosures, which can mask certain problems:

– Molds (because the previous owners were angry & flood the house by leaving the faucets running).
– Structural issues with the property.

Can one hire an inspector to detect these problems before making an offer ?
Which physical problems cannot be detected or very difficult to detect ?

[Author]

Posts