Can You still buy foreclosures in the Inland Empire Ca =Riverside & San Bernardino counties , or are reos better? or have the banks and international investors , monopoly or pushed out the smaller investors i was told they are selling over asking price , my friends says focus on foreclosure instead or reos? , yellow letters ? any thoughts …i want to start wholesaling again been out since 2007 pre bubble
We often focus on Pre-Foreclosures but, we also go directly to the REO Manager at LOCAL banks. We pickup REO’s off MLS maybe once or twice a year. Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower. That’s helpful information when dealing with a Homeowner facing foreclosure.
A deficiency judgement is where the bank gets a judgement against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale. The idea obviously is to sell before the foreclosure takes place.
To find them: We often go straight to local banks (not the big national ones). The article below has a great resource that lists the state by state deficiency judgement laws, since every state is different so know it before talking to a prospective seller.
Generally, we will use skiptrace and other resources to find contact info to call up the bank and talk to the REO manager and sometimes use our Attorney to negotiate a price with them. Finding a good foreclosure attorney is very helpful when they can influence the condition of the property using updated photos etc.
If you’re a homeowner in pre-foreclosure, experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe. Then its possible the investor will buy it. Often that’s our role when consulting with a homeowner.
Providing leave some credibility these days is very important.