Need Ideas To Approach
a home i used to rent (and i fell in love with) just got foreclosed on early this spring. i actually tried to buy it from the seller with L/O about 3 years ago when i lived there. she kept denying it and draggin her feet with responses. last time i drove into town, i shot past it and sure enough it was boarded up with the orange sign on the door. i came home and researched it and found that wells fargo purchased it for ... ugh ... $2938!!!!!
it's a historic part of the city and homes are going for $60K. i've tried to contact wells fargo and they keep pushing me off to a realtor who won't listen to my interest. i kno the home, i lived in it and i kno what was wrong - virtually nothing. i want to find a way to approach them so that they'd listen to my offer. i've tried just buying it from them for 5 times what they paid (yeah right), then i tried to be creative with a L/O offer with the money down that they paid for it - so they don't lose a penny and it becomes a performing property for them immediately. both were scoffed at, so now i want to see if any of you can help me devise a plan to attack again. this place is so worth it!
thanks in advance ...
If anyone on the other side of the deal knows you've got to have that property, they will find a way to make you overpay for it!
Keep making offers, but curb your enthusiasm!
yeah i hear u. i don't let them know that i NEED it, but i will have to keep making offers. as long as it's vacant, i'm feeling that they'd at least entertain me by countering something. but i'm getting no response. i wish i could deal with someone other than the realtor they told me to contact about this property - because as we know, a lot of realtors want nothing to do with any terms beyond go-to-the-bank financing!
thanks for the reply flacorps ...
The reason Wells Fargo keeps pushing you to an agent is because they have started their own division to get rid of their REOs. (I have the website at home) They will not work with you just your agent or the one they have the property listed with. You must give a deposit or they will not look at any offers. If you give more than one offer they will not talk until they know you have the cash or if you need finacing you must show an acceptance letter unless you are paying all cash.
They have made it very very hard on the creative investor. Sorry for the bad news...
I hightly doubt that you will get many banks to entertain creative offers. You need to try to just come up with enough cash to buy them out, then put a tenant buyer into the property.
Or, catch it before it becomes REO and then short sale it.
They dont want to carry part of the loan, they want it gone.
OC: thanks, u seem to be too right!
James: this suxxx. u too must be right. they did start another division, which confused me - it was like they directed me to another company. this is why i wanted to contact them directly somehow. i appreciate the news though and will look for financing or let it go. funny u should answer too, b/c the wells fargo that got it is in Minnesota (where ur apparently from). haha. Give me back my property man!
thanks all.
Jackman,
You are so right. They do suxx. I found a great property in a good area but with high number of foreclosure. I made them a fair offer but by the time I got done jumping threw the hoops I had had it and it was not worth the work....
as for your house .....I will sell it back to you for a small profit....hahahaha Wish you luck in you investing....
Dear Jackman,
I am glad you have found a house that you would like to live in again. Too bad that you could not have inserted prior to the foreclosure.
Interesting that the bank is experiencing so much non performing paper that they have set up a captive REO deal. What is fun is to see them trying to handle from out of state. I supose they want all the Brokers that deal with them to list out and qualify onto the Web Page of the REO. Same old stuff. Indicative of bad lending over the last few years.
Ok, lets to cause. First go to the title company or failing that the local Hall of Records and go back on the title at least ten years. Observe carefully the deed transfers, the mortgages, satisfaction of mortgages etc. etc. Get the full history, find the exact amount bid at foreclosure sale and if necessary what the true unpaid balance was at time of default. Now you have some knowledge of the battlefield.
Either you or your tame captive real estate broker noh salesman register with the REO.
After proper examination of the history of the loan and title we will begin a series of offers designed to tempt the fancy of the REO. Slowly like pussy cat, offer by offer, perhaps even two or three different entities of offers, and not straight line. One offer is higher but requires a very low interest. Next offer lower but will take a higher interest rate, play with the commissions, one has over points to compensate and the next has none.
In the process of multiple offers you begin to gain a knowledge of the requirements of the lending bank and the instructions given to REO officers and in time a pattern emerges as to what they can and cannot do. Then you make a decision. Which at that time is weather to move in this week or next.
You can play this game by yourself or you can stop at each phase and query the highly qualified experts on this site of Creative Investors. make sense??
Cheers Lucius
lufos, great ideas. i do know the winning bid (mentioned in my first post) but i don't kno yet, the actual default amount. i have been to sherriff's sales tho all over PA and i really don't kno them to accept a bid under the opening bid (what is in default plus all fees, taxes, etc.) ever. with that i'd assume (but will check anyway) what the actual amount of the default was. i can also do the mortgage search to see what the total loan was for - i kno the last deed of record (1995) was a $1 deed - so that's just a transfer.
exactly what u said "asking the experts for help at every step" is precisely what i was doing. haha. i'm lookin for new approaches. however, i still have to look for financing yet to see what i could stretch out for them. they have to want to deal on it, jeez, it's been vacant since i moved out in 2001 (owner never got another tenant - and STILL didn't entertain my interest) and still been vacant since the sale in april of this year. i kno no bank wants to be paying maintenance for 6 months and running - especiall when there's interest on it and money to be made. uuugggghh!!
thanks folx. now, anyone wanna partner with me and help us snatch this?? hehehe .. j/k, i don't want put in tci jail!