What is the best investment method for a foreclosed property that has been auctioned with no buyers. Is it still worth going after.
If you have already submitted a short sale offer pre-auction; sometimes they will reconsider the offer when it goes back to the bank.
If not you will have to wait until it is transferred to the REO department. That means they will have assigned a realtor who will then list the property for sale. Most bank work with agents on their REOs
Good luck
It is already with a realtor who specializes in REO. What I am wondering is can you still get a good deal once it hits this point. If a house is listed by the agents company and the bank owns the note, whats the best way to proceed on these type of houses.
I’m curious on this too. There’s one around the corner from me that might be a good deal for what the auction amount was. I contacted the trustee about looking at it and if I could buy it directly.
They said the mortgage company required them to list it on the open market. They told me it wouldn’t be listed for awhile because the family was still living in it. I’m thinking the market is still strong enough in this area that it will sell at too high of price to make it a good investment.
I don’t believe CA has a redemption period after the auction either. Maybe someone can answer that one for me…
:-[ Do the math!
You have to run comps to see what your possible selling price (less closing/commissions) will be so you can calculate approximate profit.
Figure out the most you will pay for the property and the least profit you can accept. Then make an offer but do pay more than that number.
But even before you buy you should also know what your exit strategy(ies) will be.
Are you going to fix and hold? OR fix and flip?
The repair and holding costs should also be calculated. Always estimate holding time longer than the current market to give yourself room.
Yes, you can still make money with REOs as long as you do your homework, run your numbers and figure out your exit strategy.
The other factor is the bank. If a lot of the propertie are coming back after auction you have a better chance at good discounts.
Its all market driven and different in all areas. Bankers attitudes about discounting REOs are affecting by how many he gets back every month.
Live Long and Prosper
If the property is sent back to the bank, contact their REO/Foreclosed properties and make an offer 
It can’t hurt and at the same time, you can develop a rapport too. Leave them your business card and let them know what you can do.
My husband had submitted an offer to the bank on a property that was being foreclosed but the bank was stubborn and wanted full price. However, the house still went back to the bank (perfect condition, nice neighborhood, nice cash flow)…however, after it went back to the bank, the bank contacted my husband and wanted to know if he was still interested. So we got a property that the bank accepted 85,000.00 for a property worth about 110,000.00 after doing some small repairs, mostly cosmetic.
Make them an offer anyway and see what happens