Posted by Charles Steed on February 01, 2001 at 11:02:04:
The attorney/trustee can point you to the bank rep handling the sale. Since the bank doesn’t want to deal with marketing the property, the rep can sometimes be very flexible in setting up new financing. From here, providing there’s sufficient equity, you can attract a partner/investor or take the deal yourself. If you impress them as an individual who can make things happen, they will sometimes grant you the time to put it together. Also, attorneys acting as trustees usually handle foreclosures for many lenders and sometimes will be willing to notify you when something good comes along.
Lisa Might I add check the local paper,make notes on what attorney is in charge of the forclosed prop and is handling the sale.Keep a list of banks and att. this will tell you who does what for whom.Banks use the same ones over and over,call them or go to a sale and speak in person with them at the sale they will point you to the right Bank,note owner,ect.
Re: Purchasing foreclosure listings - Posted by Potash
Posted by Potash on February 01, 2001 at 08:43:53:
Those forecloure lists are so 1999. These days the smart, time straped, investor just hires a local company to do all the work for him/her. These companies will do the research, send letters, make phone calls, and then send you a check every week. No thought or effort involved.
Forget those lists, they are OLD, even before they are published and the “Investors” beat you to them.
Buy the Legal News publication, or whatever it’s called in your area. Call the courthouse, they know who gathers the Legal info and the name of their publication. I used to pay One Dollar per day ($240.00 per year) for the paper. I can’t even drive back and forth to the courthouse for that.
Connect with a Realtor who has the Tax Assessor’s Data base Online, so you can find the address, mailing and situs, how much the owner paid, when they bought it, what size it is, assessed value and neighborhood comps etc.
Psst, Hea… Mabe, they wouldn’t mind if you came by and saw them on the weekends, when they are “On Duty” (read… use their Assessors D-Base and the MLS computer).
Realtors are (can be) your best friend or someone you wished you’d never met. Cull 80% of them, concider the rest. Have your s*it together. Do NOT waist their time, show them they will make money working with you. Don’t BS"em. They will throw you deals if you throw them deals (list with them).
Their is MUCH more to know (read) learn.
eg. Repair cost are twice as much as you expect them to be. LeGrand says “How do you think I know that” LOL.
Re: Purchasing foreclosure listings - Posted by Lisa Jones
Posted by Lisa Jones on February 01, 2001 at 11:27:10:
Potash
I am not sure I understand what these companies do. How do they send you a check? Do you have a url to the company you are referencing so I can research further?
Lee, Very Resourceful Suggestions - Posted by Charles Steed
Posted by Charles Steed on February 01, 2001 at 09:25:07:
I might add, when approaching realtors, don’t mention No Money Down, Carleton Sheets, or any of the other gurus. Tell them you’re in the market for an investment property. If they ask how much you have to work with, say “whatever it takes,” or “I’ve got some money coming.” Be organized. Don’t waste their time.
Another excellent “in” to foreclosures is to contact the trustee named in the legal notice. This is usually an attorney handling the sale for the bank. Ask the trustee who the contact person is at the bank in charge of the proceeding. When you find out who it is, make an appointment to talk with them and ask what kind of financing arrangements might be made should you be the high bidder at the auction. You might be very pleasantly surprised what they say.
This method gets you in the back door. If you simply call the bank and ask who handles the foreclosures, they will flat out deny they have any (bad public relations), but when you ask for the right person saying that Mr./Ms. X (trustee) referred you, you have much more credibility. This has worked well for me over the years. There is usually a creative way to solve your prospecting problems without throwing a ton of money at them. Best wishes.
Posted by TRandle on February 01, 2001 at 12:38:02:
Charles,
Could you elaborate on the types of financing arrangements you’ve been able to work with the lender in regards to being the high bidder? For example, have you had success with 100% NOO financing with the purchase price being the principal balance? Or perhaps the principal balance plus fees, etc? Even at FMV, this could possibly work. I’m curious. Thanks…
Re: Lee, Very Resourceful Suggestions - Posted by Stacy (AZ)
Posted by Stacy (AZ) on February 01, 2001 at 10:31:11:
Charles, can you go more into detail about this statement?
“When you find out who it is, make an appointment to talk with them and ask what kind of financing arrangements might be made should you be the high bidder at the auction. You might be very pleasantly surprised what they say.”
Are you saying the attorney will have insight into special financing? Can you explain?
Re: More Details, Please - Posted by Charles Steed
Posted by Charles Steed on February 01, 2001 at 13:02:23:
The lender looks at this as an opportunity to turn lemons into lemonade. With the exception of recently refinancing my own home, I haven’t been to a bank for a loan in more than 10 years. My parameters for buying RE are simple. I have to be able to purchase for at least a 30% discount of the appraised value. Rarely do I deviate from this. When you buy this way, it’s almost impossible to screw up. For anyone doubting this can be done on a consistent basis, I suggest you refer to some of the success stories on this site.
Once I’ve located a property with sufficient equity, I have several funding sources - contacts I’ve developed over the years. In fact, a guy I’ve done a lot of business with (he’s a private lender) called me on Tues. and asked why I haven’t submitted anything lately. He’s kind of a pain to deal with, so he’s usually the last person I call.
Getting back to your question. Every time I’ve spoken with the bank rep, they’ve been very friendly. They actually trip over themselves trying to get you to finance the property with them. Pretty much, they’re looking for a standard deal - 3 to 10 percent down, credit check, qualifying etc. BUT, just because that has been MY experience, it doesn’t mean it will be yours. Remember, in this case the bank is the motivated seller. If you’re looking at a home with decent equity, they know the property is sufficient collateral, so they can sometimes relax normal standards.
The point is, you’ll never know unless you ask. This board is a great resource, but the real deals are out in the marketplace, so get out there and make something happen!
