Ok, there is a property that I was interested in that went up for foreclosure auction today. The starting bid was higher then my maximum (considering that i had to use hard money to finance) so i didn’t bid, and no one else did either.
Assuming the upset period expires with no takers it will be “sold” to the mortgage holder for the opening bid. Can i go to them and offer to purchase for that price or is there a better strategy? If i can get a traditional mortgage on the property it will be worth it (after repairs).
Any advise would be appreciated!
Thanks!
It would go back to the bank as an reo. You can offer less before they put it out to the public if you know the realtor that is going to list it.
I’m going to call the lender and see if i can talk to the department in charge of REO properties and see where i can get with them. It may be worth it to them to take less because they won’t have the traditional Realtor fees associated with the transfer.
Ok, i’ve hit a roadblock. I can’t seem to get anyone on the phone who can talk to me about this. They keep forwarding me to a stupid automated information line.
Anyone know would i should ask for or try and contact at Countrywide?
Most states have a redemtion period of some kind sometimes it is up to 12 months for the Homeowner to redeem the property. If this is the case then that will give you some time to work with the lender to purchase. If possible I would try to work out a short sale with the lender (depends on the numbers) but that would give you more equity.