Foreclosures

[OvertaxedOnLI]

Originally Posted by house-hunter

anyway, in regard to this thread there are many forclosures out there and they can be found by calling the banks that now own them. just my .02

They are found much earlier than that by speculators who know to scour all the local newspapers for Notices of Sale. They then appear at the courthouse steps when the property is being auctioned. They also make sure that they have the requisite 10% down in hand at the time if they intend to bid.

Once the lender has actually taken back the property by way of foreclosure sale, they will ask whatever price they wish for the house they now own. Keep in mind that they will have expenses to recoup other than simply the remaining balance on the mortgage. All these other expenses have been factored into the upset price that their attorney worked from at the sale.

Those who want to pay the least possible amount for a foreclosure are more likely to get it at the foreclosure sale itself, not afterwards when the property has been put into the hands of the lender's realtor (and the realtor's commission is then factored into the price the lender wishes to get). Of course the lender can decide to take x cents on the dollar when selling post-sale, depending on the market. In a hot market like the NY Metro area, unless the house is a total wreck and/or in a bad area, the lender probably won't be inclined to do that and will want to at least break even.

In parts of the country where there are MANY foreclosures, things can be different. However, in general, buying foreclosures is not for the fainthearted or cash-strapped.

[rubytue]

Originally Posted by OvertaxedOnLI

They are found much earlier than that by speculators who know to scour all the local newspapers for Notices of Sale. They then appear at the courthouse steps when the property is being auctioned. They also make sure that they have the requisite 10% down in hand at the time if they intend to bid.

This is kind of theoretcial, since I don't intent to go this route, but something I have been wondering - how exactly does one show up with 10% cash in hand? For example, a house near me was advertised as being up for a forclosure auction last Friday*, and it said the deposit was listed as $32k. Now, say I have $32k in the bank, I'm not going to bring it in cash. And how would one deal with a cashier's check - you don't want it made out to the auction company, b/c how would you deal with it if you didn't win. And my personal check for $32k isn't going to fly. So logistically, how does this work?


* out of curiosity, my husband and I drove buy it. It literally had an AMTRACK line in the back yard and a trailer park across the street, and it was still valued at ~$350k (most recent sale on the street was $384k, but was 8 months ago). I don't think we would have bought it for even $32k LOL

[Sgoldie]

You could have a bank check or a cashier's check made out in your name which could be endorsed over, or you could present a line of credit letter (TWIMC) based on your balance and provided by your bank. They could then call your banker, provided it's during business hours, and put a hold on your accout for the amount of your personal check.

[HuntMan1]

Establish a relationship with a title co. You can get defaults REO's and a list of renters to market your newly renovated property to.

Take Care

[momoffive]

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