I’m new to the Foreclosue REI. I’m working with a agent to find foreclosed homes in MLS. We found several homes (bankowned) in areas I want to invest in. My question is, Is there a way I can find out what the outstanding balance of the mortgage was before the bank foreclosed and repurchased it thru the auction? Alot of these homes are as-is or needs TLC, but the asking prices don’t reflect this.
I’m thinking about calling the listing agent, telling him I have an offer, faxing it to him and see what happens.
I also found homes that state “bank must approve offer”, would these propertied be good candidates for sub2. I was thinking square up the owner with the bank and take over the mortgage? How about "need short sale approval? (sub2)
Gene,
You may beable to find out what the remaining balance is on the loan before the bank bought it is almost next to impossible because that info has to come from the bank it self by permission of the original mortgagor, and once the bank takes over they are the new owners.
Usually you won’t find out what the bank bought the home for through the MLS because the bank bought it through a private sale such as a sherrif sale.
If you are in a disclosure state then you may beable to find out when all the records come out what was paid through Public records.
If you are in a non-disclosure state you may never know because they do not have to tell or record anything.
Usually Agents don’t list the homes refecting the bottom line they reflex what they think the home is worth a retail value through the BPO that they do and they always try to make the most for the bank they are representing them.
When it state “bank must approve offer” they are doing a possible short sale or short payoff sale and agian they want to get most of what they can get out of the deal.
" need short sale approval" Is about the same thing and they are jsust going through the process of the sellers getting aproved by the bank to be able to offer a short sale. So what the bank is doing is going through the sellers financial and making sure that they really are in financial trouble and that they are someway not able to pay back this loan.
I agree with the previous poster. The list price that the bank uses is usually a reflection of what they believe the property is worth (will seel for) based on the BPO(s) they had done. Listings that say “subject to bank approval” are most likely short sales.
How about pre-foreclosures, are the original owners still in control of the situation, so I could contact them ang get all the info or is the bank now involved and I would need to deal with them. I’m thinking if the numbers are good, I could square up the owner with the bank and do a Sub2 deal. What do you think about that??
Oh yes! ;D
This is a very common technique and it works well.