anitautami, Home Buyer in Los Angeles, CA

I am interested in purchasing a property that is recently in Notice of Default status. Can you please walk me through the process that I need to do?

Asked by anitautami, Los Angeles, CA Tue Apr 17, 2012

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Neal Grusky’s answer
HI,
You cannot buy this NOD this property yet. But you may offer the current owner a deal, and relieve them of their financial hardship. Being an investor myself, I understand buying distress properties. This actually one of the best times to get a deal. It can be a win-win for you and the seller. Give me a call and Ill help you put an offer together that should get a deal rolling if the owner is looking for a way out of their financial situation.
Good Luck!

Neal Grusky
DRE# 01890580
Hpremiere Properties
Real Estate and Financing
10940 Wilshire Blvd. Suite 1600,
LA 90024 | Office:
(800) 652-1768
| Fax: (800) 652-7604
http://www.hpremiereproperties.com
1 vote Thank Flag Link Tue Apr 17, 2012
Hi Anitautami:

Unfortunately, if a property has a Notice of Default filed against it, it does not mean that the property is up for sale. This is considered to be in a pre-forclosure status.

In the event that the current owner is attempting to complete a short sale on the property, then the property most likely will be listed for sale.

Do you have the property address you are interested in purchasing? Then I would be able to help you out more and find out if it is currently listed or if the current owner is interested in selling at this time.

Please let me know.

All the best,

Kat Becker, Realtor
Prudential California Realty
katbecker@prula.com
1 vote Thank Flag Link Tue Apr 17, 2012
Notice of Default means that the current owner is "late" on their mortgage payments. It does not mean the house will end up going to foreclosure because the owner has time to "cure the default" and keep their home. Most owners will do just that. If you are interested in distressed property, the first step would be to sit down with a licensed and qualified Realtor to discuss your options.
0 votes Thank Flag Link Wed Jan 22, 2014
... just missed to type other options for the owner:
6. Deed in lieu, where owner transfers title to lender upon agreement,
7. listed with a real estate agent for sale.

Anyhow, I could help you find out this situation.

Douglas Perez
(213) 375-8741
doug@cashrealty.net

http://theforeclosureprocess.info
0 votes Thank Flag Link Tue Apr 17, 2012
All I would need is for you to send me an email or call me so I have your information, then get the property address you're interested in & then let you know how I will proceed to make contact, if they're interested in doing the short sale, we can analyze the sales comps (what the bank will be looking at) and go from there to put in an offer.

See my 1st comment as well.
0 votes Thank Flag Link Tue Apr 17, 2012
A Notice Of Default means that lender has publicly filed / recorded this notice for non-pyaments.

At this point, the property owner is in some kind of financial hardship and has several options:
1. make the loan current by paying the arrears and late fees,
2. work out a payment plan or loan modification with lender,
3. HARP program - refinance if owner qualifies,
4. file bankruptcy
5. Short Sale the property if there's no equity to sell it.

If you are interested in purchasing this property, either you or your agent approach the owner and make an offer to buy it through short sale.

Let me know if I can be of assistance.

Douglas Perez
(213) 375-8741
doug@cashrealty.net

http://theforeclosureprocess.info
0 votes Thank Flag Link Tue Apr 17, 2012
I don't agree with John at all.

I have successfully closed 100% of the short sale / NOD listings I have taken since Jan. 1st 2006 & have closed over 3 dozen, my partner has closed over 700. We have a great system & I have done "dual agency" or have worked with the buyer & seller to bring the home to a successful close for all parties including the pesky banks.

I would be happy to show you my Short Sale Resume & you can feel free to grill me with your questions, I think you'll find that with my answers, I know what I'm doing. I know how to approach defaulting homeowners, talk to them about their loan mod efforts (or failures of the banks), put them at ease & let them grill me too with their questions about the short sale process.

In my opinion for John to be making a statement like that about dual agency & short sales, I'm going to guess that he's probably not closed many & lacks the experience / success to make such a comment.


Shoot me an email directly if you'd like to talk to me some more. I don't look back on this same Trulia thread for answers posted after mine.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors
0 votes Thank Flag Link Tue Apr 17, 2012
Step 1 - Get an agent to represent you that is familiar with the process. They can determine the true status of the property. Step 2 - rely on that agents advice. These transactions can be very tricky, but they can be very rewarding. Have patience, ask lots of questions, and by all means, know what is going on at all times. And Oh Yeah, don't get your heart set on the house until you have title in hand and you are living in the house happily.
0 votes Thank Flag Link Tue Apr 17, 2012
A home that has received a Notice Of Default is not yet for sale and the lender has no ownership of it until the property goes through foreclosure. I've chased dozens of homes that received an NOD, only to have the homeowner catch up with payments before I could snag it. I recommend you try this:
1. Find a local agent who can help you determine the market value of the property
2. Have the agent contact the homeowner to ask if they will look at unsolicited offers (many agents just send an offer to the owner, trying to be first in line, but I find the owner appreciates the soft sell and will cooperate more if you take it easy with them).
3.a. If the seller is in a short sale situation, work with the seller's agent to put the short sale package together for the lender and be patient
3.b. If the seller is willing to sell and is not in a short sale situation, have your agent begin negotiating and working towards opening escrow. You'll want to do a lot of inspections as soon as possible, since most homes that have mortgage lates also have lots of maintenance needed.
3.c. If the seller doesn't want to sell, make sure he has your contact information so he can call you if he needs help in the future.
4. Never, under any circumstances, get hood-winked into your agent representing you and the seller. If your agent suggests this to "make the transaction easier" or "to reduce costs" - I strongly, urgently recommend you consider another agent. The seller is in a distressed position and your potential liability increases greatly because of it. Bringing dual agency into the deal just adds to the possibility of you ending up in court and/or losing the property. In the end it will not make things easier and it probably won't save you very much money.
Lastly, listen to your local agent to find out if there are any better ways about going after NOD's in your area. I'm a northern California agent, I can't help you with your deal, but the advice I provided applies in any market. Just add to it any localisms your good agent suggests.
Best of luck!
0 votes Thank Flag Link Tue Apr 17, 2012
At the NOD stage an agent would do a title search on your behalf to see what is going on with title and if it is free and clear of any complications. The process of putting in an offer if the home is already on the market would be same proces as a standard sale with the lender giving you details of the lien(s) that exist on the home.
If you are approaching the owner without an agent representing you it can get pretty dicey and a legal tangle can ensue so I would discourage you from proceeding unrepresented.
If you need anything else please don't hesitate to contact me directly and I can assist.

Best regards,
Tammy Hunt
Nelson Shelton & Associates
355 N. Canon Dr.
Beverly Hills CA 90210
310-990-9005
tammyagnt@aol.com
http://www.tammyhunt.com
Lic# 01275416
0 votes Thank Flag Link Tue Apr 17, 2012
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