Day After The Sheriff Sale...How Do I Approach Bank Before They Get Too Organized?
Property was just repoed by bank at sale. How do I convince them to sell before they do their homework and realize the value of the property? (Would have bought it at sale but not enough cash!) 
They will not do that. They will wait until they have all the info they want before they commit to an offer. Also, the majority of lenders now list their property exclusively on the MLS thru an agent. So likely they will tell you to call so and so agent at XXX realty company about it.
Roger
It will be tough to do. Generally, there's about a 3 month gap between when the bank forecloses until it's listed with their favorite realty company.
Maybe I missed where the property was located, but if there is a right of redemption, you have the option of purchasing the right of redemption.. still need some liquidity, though.
I thought that the right of redemption expired when it went to sale. Is it only if the bank takes posession at the sale that there is a right of redemption? I'm confused...and by the way this is in Florida.
yup, even if there's no redemption period in your state, you have a small window of time after the sale to beat the bank to finalize the sale. if you get the foreclosed owner to settle that before that happens, you could be fine.
sorry i don't know the technical term for this - i just read up on it and i'm trying to do the same thing. i have someone getting foreclosed on wednesday (11/26) and i won't get there before then but monday, she's all mine if i can get my ducks lined up by then.
Really, the bank is only interested in getting enough money to pay off the mortgage plus their costs of holding and lawyers fees. They are not, and do not want to be in the real estate business. Depending on the bank, you may be able to purchase directly from them. If It is on the secondary market you will have to deal with someone who is perhaps across the country. If it is a small local bank or credit union you will have more luck. Two of the local credit unions in my area would sell to an investor before paying out a commission to a real estate broker. I realize that you are writing this after the forclosure sale but in the future, If you really want to buy forclosures, it may be best to just go to the Sheriff sale yourself and bid over the lender? They normally don't even show up. They simply send a written bid. If you bid higher they will be happy to see that it was taken off of their hands! You should do your homework and find out what is owed and get a bank set up to work with you ahead of time, You may find it easier to contact the commercial lending side of your bank rather than the usual mortgage lending side. Get a good banker on your side in advance and you can go a long way!<IMG SRC="images/forum/smilies/icon_smile.gif"> [ Edited by Sandbahr on Date 11/23/2003 ]
Quote:
On 2003-11-23 17:28, BethE wrote:
Property was just repoed by bank at sale. How do I convince them to sell before they do their homework and realize the value of the property? (Would have bought it at sale but not enough cash!) <IMG SRC="images/forum/smilies/icon_rolleyes.gif">
Beth, you naughty girl.
I am sure that will never happen again. You line all your checks up prior to sale..If you need assistance talk to your banker and set up a credit line that you can draw on for checks, like 90 day loans.
I think you are in Florida, lay out the sale procedure for that state and any redemption periods after sale. I am not sure but I think there has been some changes in codes during last five years.
That information then directs you as to when to approach an REO after sale. Also it depends on the bank. Mostly check with the designated Trustee they can be very helpfull.
Normal formulae these days is to assign a listing to a Broker, mostly captive and he in time when he gets around to it and cannot effect a sale from a pocket listing puts it in Multiple. He then calls his regulars who have swayed him to their cause by future promises of who knows what., Raffle tickets, sponser his membership application to the country club. Change the tire on his car whatever.
Contacts are important, sometimes you have to play the OldBoy or OldGirl game with all its symbols and tokens. Try to stay amused.
Good Luck yes it can be done Lucius
Thanks Everyone,
I did call all of the contacts I could and could only raise $500K in cash which was not enough. I usually set my sights lower in price but was trying to cash in on the big Kahuna first time out. Boy would that have been sweet. I'm not done trying yet - I'll let you know.
Quick FYI: In Florida there is no statutory redemption period in the traditional sense. The borrower is allowed to pay the amount owed up until the time that the certificate of sale is issued. What you do have, however, is a 10 day protest period during which the debtor can raise any procedural irregularities with the sale itself. If no protest is received, the clerk is required to issue a certificate of sale to the successful bidder.
J