Posted by Bud Branstetter on November 21, 1999 at 22:13:01:
Steph,
They didn’t get to be big boys not knowing what to do or how to run you up. That old auction fever. You should know how these guys are likely to bid and how much rather that try to learn that day. The last couple years the bids in the major cities have gone so high that I don’t see how they can make any money after fixup. As Joe says the best approach is usually to get it before the auction.
BIG F/C deal- Kaiser? F/C Pros? please Help! kinda long) - Posted by steph in tex
Posted by steph in tex on November 20, 1999 at 21:38:13:
hey gang-
i am working on a big deal that happens to be a pre-foreclosure/ soon to be an “on the steps foreclosure sale”.
i have done quite a few pre-foreclosures, but have yet to actually participate in the on the steps sale. here’s the scoop;
preF/c house is a rental–owner has some metal history per all the neighbors/tenants–won’t respond to any attemps to contact her (i’ve tried them all). has many properties all over town–all in foreclosure. i would normally pass on this deal-but the numbers are HUGE. (potenial profit of greater than 100K)
i have approval from my lender to bid at sale up to X amount. i have to have an appraisal at a minimun and i am willing to risk the $350.00 to have this done since the numbers are so high. i can even get in the property (i have a friend who just happens to know the tenants) if needed.
i am working with my title company now to have a commitment/policy ready for me the day of sale. this is a bit out of the norm for them as the owner is not a part of this transaction–but we are working on it. i have done alot of business with them-so we’ll see.
my question is for you F/C pros–Kaiser, etc…
if i bid at the sale, how long will they ( the bank ) give me to actually fund the deal? i think i need at least 24hrs if i can get it? does this vary greatly from lender to lender? or is this a standard? i know with the tax sales here they only give you 3 hrs to fund. i am trying to located the trustee listed -but so far nothing–must not be local—ideas? i have even contacted the law firm handling the foreclosure.
any advise, pitfalls, stuff i’m missing, etc etc etc. i am eating, sleeping and breathing this one right now. please help me clear my head. i know i must be missing something here. this is a huge deal–every time i do a site drive by–there are other investors there- i guess we’re all trying to do the same thing. i want to be able to play with the big boys and learn something – but i don’t want to look like an ASSet!
thanks in advance
steph in tex
Other option - Posted by ScottE
Posted by ScottE on November 21, 1999 at 15:57:59:
Steph,
Have you considered possibly buying the note from the bank(perhaps at a small discount) and continuing the foreclosure by yourself?
Scott
Forget about it . . . - Posted by Joe Kaiser
Posted by Joe Kaiser on November 20, 1999 at 23:26:21:
You’re looking in the wrong place. Get yourself in front of the owner. It may be tough, but it’s your only real play here.
When the sharks are circling, I get out of the pool and figure out a better plan. If you’re stuck and need a partner, contact me.
Joe
PS. the trustee should be able to tell you when you need the dough. It’s often BEFORE the sale or up to an hour or two after . . . but it’s never “tomorrow.”
Never Say Never - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on November 21, 1999 at 12:48:25:
Joe,
I don’t know if I’m reading your post correctly or not, but in my neck of the woods, Phoenix, AZ, you’ve got until 3 or 5 o’clock the next day to pay for your winning bid.
You only need $1,000 to bid at the auction, and before the auction begins, the trustee will ask to see your cash or certified funds. If you win and can’t fund, you lose your $1,000.
So, if this is the case in Texas, then Steph may have the time she needs to get the funds. Of course, perhaps you were answering the question based on Texas procedures. If so, then…never mind. 
Bill K. (AZ)
Re: Forget about it . . . - Posted by steph in tex
Posted by steph in tex on November 21, 1999 at 08:15:12:
hey Joe,
thanks for the response.
HELP! I have tried everything! i have even camped out on her front porch (and i know she was home)ringing the doorbell every 10 mins for am hour. i have called, left notes, left cards, (which are all gone and i suppose taken in the house)put a letter on her car even. tenants and neighbors all say this lady is truly suffering from some form of dementia. i would be afraid that even if i did get it under contract with her, she might forget, or it might be thought that i was trying to take advantage of the lady. i don’t think i could get her to a closing. the nieghbors says she won’t come outside. do you have any other ideas for getting through to her? the sale is in 2 weeks.
you think that i souldn’t even try to bid it at sale? what are some of the risks? i would like the learning experience. i know i would risk the cost of the appraisal.
how do they deliver title at a sale on the steps? are there any issues you can see there? thanks for the input. maybe i should forget it–but i hate it when i can taste the deal like this!! i know i can’t walk just yet!
but the ride is fun, and i am sure to come out with more knowledge than before!
thanks joe
(your site is great by the way!)
steph in tex
i’m keepin’ my fingers crossed! - Posted by steph in tex
Posted by steph in tex on November 21, 1999 at 15:18:54:
Bill-- I was hoping someone would post something like you did :^) !
i’m going to talk to the trustee before going any further–but if i do have until 3 the next day–we’re in business!
thanks!
steph in tex
Don’t Forget about it but get help - Posted by Irwin
Posted by Irwin on November 22, 1999 at 22:35:44:
IMO, no one should bid at a foreclosure sale without knowing all the legal ramifications of their bid. This means contacting a lawyer and finding out everything that’s involved in Texas f/c law as it relates to your acquisition of this property. For instance, I’ve heard that f/c in Texas happens very quickly; however, just how quick, and what redemption rights the mortgagor has post sale, I don’t know. So that’s where I start. What are my rights as the high bidder? Are there any liens that will remain against the property like IRS redempion rights, unpaid state/local real estate taxes/junior liens etc…
At our sheriff sales, you’d be SOL because you have to have your entire bid AT the sale. No time to go close a loan and bring it back the next day. The Trustee probably has some discretion in this regard. Find out what he’ll do. His job is to get the max possible for the lender.
Most important: Don’t expect to walk away from a Trustee (or Sheriff’s) sale with a potential 100k profit. Nobody’s going to let you do that. Even the guys who team up to try to control the sale, won’t let one of their own get away with that much. There will be cross-deals made. Nevertheless, don’t be afraid to go head to head with any of them, SO LONG AS you know EXACTLY you’re buying into. AND remember, don’t get carried away. There will always be other deals coming your way.
Posters of this kind of situation are required by law to report what happens.
Re: Forget about it . . . - Posted by Bud Branstetter
Posted by Bud Branstetter on November 21, 1999 at 10:10:38:
Steph,
You can try getting a letter of credit from the bank and you can try getting approval from the lender and their trustee to accept it. I have just never seen it done. The court house steps is a cash(cashier check) business. Maybe you need a new approach to see her. Fedex, pizza delivery, cab or relative.
Get your banker to set up a line of credit to allow you to bid. Checks made out trustee. Returned if not used.
Re: i’m keepin’ my fingers crossed! - Posted by Joe Kaiser
Posted by Joe Kaiser on November 21, 1999 at 18:05:22:
Steph . . .
You’re missing the point. If it’s a property everyone is targeting, it will likely be bid up to a price that is well beyond what you should be paying. The problem isn’t coming up with the money in time, it’s buying it at a price that makes sense.
Joe
Re: i’m keepin’ my fingers crossed! - Posted by steph in tex
Posted by steph in tex on November 21, 1999 at 20:52:37:
no-no— i get it.
i will have my limits–true-- my lender will only let me bid up to X amount. that’s o.k. i need the experience. if i can use this for a walk through of my first one (bidding with the big boys)–then i’ll be ready to crank these bad boys out! and oh what fun it will be–just to get in there and DO IT!! and who knows??? maybe i’ll just get lucky!? it’s happened before! i’m livin’ right–so you just never know :^)
thanks to all for the input.
joe>> if this does look like i might be in the running–i may need to give you a call to partner. i’ll get more info first from the trustee. thanks again!
steph in tex