Foreclosure in Los Angeles>Question Details

Kurling, Home Buyer in Los Angeles, CA

The short sale home I tracked for 6 months fell through escrow. The seller decided to let the home go into foreclosure. Now i'm going to the

Asked by Kurling, Los Angeles, CA Fri Jul 9, 2010

auction next week to see if it sells. If it doesn't sell, how can I be the first to buy this home before it hits the mls?

14009 Lemoli Ave

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Matthew Goulden’s answer
Hi Kurling,

If it does not sell at auction (as stated below usually at or near the loan amount owed as a minimum), the bank will take it back and get around to assigning it to and agent and putting it on the MLS. In the end they want as much money back on the debt as possible and this means advertising it in the traditional ways.

No quick trick here, and be aware if someone offers an inside deal, they will probably want you to register and pay to be on a site and you will get nothing.

My advice, go and find a great property thats on the market, and use a buyers agent to represent you.
1 vote Thank Flag Link Tue Sep 7, 2010
Hi Kurling,

See who buys it at auction. If it's bought by a private party, you're probably out of luck. If the bank buys it back, then just be on top of it and see when it comes back on the market. REO agents are usually asked to market proeprties for 7 days before taking offers--but they usually start presenting offers after a day or two if many offers come in.

Good luck! If you have more questions, feel free to contact me at (323) 219-4480

Lynn LeGlaire
1 vote Thank Flag Link Sat Jul 10, 2010
Here's what I would do...ask your agent to have an automated email alert set for just this one address. At least the moment it comes on the market, you will both be notified, and hopefully, an early notice might give you an edge in presenting your offer. Otherwise, good luck at the auction, they are mighty interesting.
1 vote Thank Flag Link Fri Jul 9, 2010
Kurling,

When you go to the auction, you can bid on the property. You will be bidding against other people who want it as well as against the bank who holds the 1st mortgage on it. If you have the ability to do so, bring Cashiers Checks with you to the auction in increments (10; $50,000 checks or 20 $25,000 checks, etc.) so you can bid on it.

If the proeprty is not "sold" at the auction, the bank will become the owner and eventually will list the property with an REO Broker in the area.

Banks do NOT sell REO properties directly to individuals. Once an agent has it (it is probably already assigned to an agent pre-foreclosure) they will eventually list it when the bank instructs them to do so.

Best of luck,

Thom Colby
Broker / Owner
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
WE NEVER DOUBLE-END A TRANSACTION IN OUR BROKERAGE.
888-391-5245 Direct Cell
1 vote Thank Flag Link Fri Jul 9, 2010
Kurling,

A townhome just went on the market at this address, it may be the one you are looking for. Feel free to contact me at my info below if you would like more information or like to set up a showing.

Richard Schulman
Keller Williams Realty
(310) 482-0173
schulmanrd@yahoo.com
0 votes Thank Flag Link Tue Sep 7, 2010
Kurling,

As many have said on this post an others, there are NO secret ways to get foreclosed homes without following the traditional methods. If someone is telling you they "have a way to do it" or they "have someone on the inside" - RUN - they are likely doing something illegal.

There are thousands of properties available for sale and I am sure you can find one that is exactly what you want. Keep looking and use a REALTOR.

Best of luck,

Thom Colby
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END a Transaction in our Brokerage. There is NO benefit to the Seller or Buyer but only benefits the Agent. Also, NEVER use your RE Agent / Broker as your Lender!
888-391-5245 Direct Cell
THOM@THOMCOLBY.COM
DRE# 01398570
0 votes Thank Flag Link Sat Sep 4, 2010
If you go to the auction, the 1st thing you are going to realize is that the opening bid is going to be for EXACTLY what the old owner was in debt for on the property. In the rarest of occ., the owner owed less than what the property was valued at, but thats like winning the lotto...so once the bank puts up its own 1st bid for the property, then no one bids, house goes to foreclosure and is sent to an agent to list for sale. Till that point, the bank that owns the house will not deal with any private indiv. There is no secret, no gimick, its done day after day the same old way.

Hope this helps...
Good luck and happy bidding :)
0 votes Thank Flag Link Thu Sep 2, 2010
Kurling,

you need access to a great title insurance rep, who can delve deep to follow the path of the owners/banks/trustees of this house.....

plus, i have other secret ways that you can find out....but i won't display my secrets here publicly.....

call or email me.....

Ronald Brittan
0 votes Thank Flag Link Wed Sep 1, 2010
Usually, after the home is foreclosed it gets assigned to a Realtor for the bank the day after the trustee sale (this is assuming a private party does not purchase it at the court). Some people send purchase agreements (offers) directly to the bank which will get re-routed to the assigned agent. You could try to find out who the agent is after the trustee sale but it may not be so easy. Some bank properties are sent to asset management companies so it may not be handled directly by the bank. Most of the time, they will need access to the property for the appraisal (this is for the bank- not for your loan) and the bank's agent will need access as well. If the property is vacant, then it will be easier. However, if the property is occupied it may not work out. If the former owner is still living there and does not want to cooperate then there's no way of getting in. If there is a tenant living there and they do not want to cooperate then it will not work. The only time that you can potentially purchase an occupied property before it hits the MLS is if you purchase the home with the occupants and it would have to be a cash offer. Then you will be responsible for dealing with the occupants after the purchase has been completed. The bank's agent should also be willing to try and work a bit to be able to sell the property before it's on the MLS because of everything I have just mentioned.

Sara Mehrpouyan
Rodeo Realty
Dre#01712757
Direct: 818-903-2040
Specializing in Foreclosures and Short Sales
0 votes Thank Flag Link Wed Jul 14, 2010
Let me know if you would like to stay updated on this property. I can put you on an alert that lets you know immediately if and when it hits the MLS so that you can be among the first to know about it and get an offer in right away. Feel free to contact me directly if you would like me to set this up for you.

Richard Schulman
Keller Williams Realty
#1 Agent KW Westside Realty 2007, 2008, 2009
schulmanrd@yahoo.com
(310) 482-0173
0 votes Thank Flag Link Wed Jul 14, 2010
I agree with Deborah Bremner below that banks will send the property to an assigned agent to be listed on the MLS. They do not sell directly to a private individual. I think attending the auction is a good idea for educational reasons. I have gone to several and it still amazes me when banks start the bidding close to, at, or even above fair market value. It's interesting to watch the bidders and how the process is handled. You also can network at the event. As one agent below said, if it is sold, perhaps you can approach the successful bidder to ultimately become the final buyer. Many of the auction buyers do intend to fix and flip, and believe me, they want to do it quickly. I you can be identified as their buyer now, they may be willing to sell to you at a better price they will have a shorter holding time.
0 votes Thank Flag Link Mon Jul 12, 2010
There would still exist a tiny window of opportunity for you to put through an offer to the bank (depends on bank policy.) It has been done before! You'll never know if you don't try. Attend the auction, and as soon as you find out it did not sell, (no bidders) get to know about the bank through the Trustee, and call the same day! It takes a little while before the property gets assigned to an asset manager and later to an agent. -Good luck!
0 votes Thank Flag Link Sat Jul 10, 2010
The good thing about a short sale if you are a purchaser you can control the situation with regards to other buyers. When the property goes to auction, there can be many or no buyers dependng on the property and other liens assoicated with the property. Once the bank gets the property you need to find out who their agent is and either get hold of them or a buyers agent to bird dog the home. But certain types of loans will be listed faster than others and it could be come a waiting game and a game of luck.

Good Luck

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee


http://www.milwaukeebailout.com
0 votes Thank Flag Link Sat Jul 10, 2010
Beyond what has been said below, I would ask why you did not offer on the short sale. This is a better route for the seller, for you, and for the bank.
For the seller, because they take less of a credit hit with a short sale as opposed to a foreclosure.
For the lender, because they don't have to carry the property, they get their money sooner, and usually a property in better condition overall.
For you, because in a short sale you have the benefit of inspections before purchase, and you can finance the property.
As for your question about buying before it hits the market, you can't. If the property goes back to the bank, they will not sell to an individual in a private sale; the property will be marketed via the Multiple Listing Service.
Best,
Deborah Bremner
REALTOR, 00588885
(D) 818.564.6591
TheBremnerGroup@gmail.com
Blogging at: http://TheBremnerGroup.com/blog
0 votes Thank Flag Link Fri Jul 9, 2010
Kurling

I am curious to know what you mean by "tracking the short sale" perhaps you could explain. Also unless you are going to bid on a property there is no need to attend an auction. All of the results are typically available the same day on web sites such as Foreclosureradar and many more. The lowest cost and most predictable way to buy foreclosure properties is buying cash at the trustee auctions.

The reason these are the best deals is simple. All Cash. If you have cash you get the best deal. I think I've heard that before.

If you don't have it find someone that does and partner with them.

PS Hate to be the reality guy but once the bank gets it there is pretty much no way to get to it before it is listed in the MLS. Try finding a REO if you are persistent and you move quick there are some occasional deals.
0 votes Thank Flag Link Fri Jul 9, 2010
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