OT: Anyone work in banking with foreclosures? Please help

[4forMe]

We are trying to buy a second home that we thought was going to be a short sale. However, we learned that the homeowner lives out of the country and plans to just walk away from the mortgage and that he has no interest in working with us to do a short sale. He has not paid the mortgage in 7 months and the bank still has not started foreclosure proceedings!

DH and I were hoping that we could speak to someone at the bank since we know we want to buy this property; however, we've been told that no one from the bank would speak with us until it's actually in foreclosure and even then there is no guarantee we would be able to talk to someone about purchasing this property.

Does anyone that works in banking or with foreclosures have any advice for us? This is a perfect property for us and we are so disheartened that the owner is not willing to do a short sale.

 

[katied]

You may have a long wait. There is a legal process the bank must follow to formally foreclose, which varies by state, but generally...

1. Formal foreclosure proceedings.
2. Foreclosure auction (a/k/a sheriff's sale). Ability to buy at this may be limited, as at times you cannot have financing. Many times, bank is only buyer at these.
3. Redemption period - based on the state law, there is a certain time period (6 months where I live) during which time the purchaser at auction cannot really take possession of the property, because the owner has the right to redeem out.
4. Now - it can be listed for sale.

We bought a foreclosure. We used RealityTrack to watch it through the process, and had our offer in the first day the listing went live after steps 1 - 3 had been exhausted. Because of the timing, the property was vacant for about 18 months before it was actually sold to us.

So - the short answer is that talking to the bank now won't really do you any good. The bank has a legal process to follow. You can watch for the sheriff's auction (depending on your state law/financing requirements) or wait until the redemption period is up - but until then, you won't really know who has the right to sell the property.

 

[lizerbug]

I work in that very deaprtment. The bank won't speak with you because they do not own the property and cannot sell it to you until they have become the legal owner, and they won't become the legal owner until foreclosure. There is a legal process that they have to follow before they foreclose. All you can really do is wait and keep your eye on the property. At the foreclosure sale, anyone can bid on the property. The bank will go in with their offer but if they are outbid by someone else who wants the property, then someone else could walk away with the property and you would then not be able to negotiate with the bank and someone else would become the legal owner. My suggestion would be to find out when the foreclosre sale is and bid on the property at the foreclosure sale. But for that, you will need cash I'm sure. Good luck and let me know if you have any other questions about the process.

 

[4forMe]

Thanks for the responses.

What is RealityTrack? Is it one of those sites that you have to pay to get foreclosure listings? Are there any ways to get foreclosure listings for free?

 

[katied]

Realty Track (www.realtytrac.com) is something you pay to suscribe to. DH is a real estate broker, and has done a certain amount of work in foreclosures, which is why we have the subscription and understand the process.

Normally, there are posting in local newspapers you can watch out for - which is free - but you can easily miss these unless you know what day the posting will go in.

 

[4forMe]

Realty Track (www.realtytrac.com) is something you pay to suscribe to. DH is a real estate broker, and has done a certain amount of work in foreclosures, which is why we have the subscription and understand the process.

Normally, there are posting in local newspapers you can watch out for - which is free - but you can easily miss these unless you know what day the posting will go in.

Thanks for the information!

 

[applelollipop]

Just be careful of buying from a sheriff's sale the bank has a lot more protection than an individual does regarding 2nd liens, judgements etc. Your safer buying from the bank..Good Luck