Is there a way to purchase a forclosed home before it goes on the market to the public?

Asked by future homebuyer, Memphis, TN Wed May 12, 2010

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5
Emily Erekuff, Home Owner, Menifee, CA
Thu May 13, 2010
Hi Sharmaine616,

Your question was duplicated on our site. You can thus find a few additional answers to your inquiry via the following links.

http://www.trulia.com/voices/Foreclosure/Is_there_a_way_to_p…

http://www.trulia.com/voices/Foreclosure/Is_there_a_way_to_p…

Best Wishes,

Emily Gibson
Community Moderator
0 votes
Holly Swogger, Other Pro, Cordova, TN
Thu May 13, 2010
As an investor in Memphis I would say your chances are slim but your best bet would be to try to contact an agent whose name you see in front of other foreclosed properties (this means he/she deals in such properties and is known as an REO agent). Contact that agent and see if he/she is willing to help. In Tennessee there is no redemption period on nearly all foreclosed properties since the homeowner waives this right at closing. At the foreclosure sale the lender takes the house back (unless a higher bidder buys it at the courthouse auction) and then the bank goes through the process (sometimes this takes months) of getting the house to market. But during this process the agent is selected very early on and you may be able to get the right agent to help at this point. But don't be surprised if a lot of these agents just blow you off. They have a habit of not wanting to do anything that slows down their pipeline.
0 votes
Jo Shaner, Agent, Memphis, TN
Thu May 13, 2010
Sharmaine,

The answers are right on the money. My partner and I represent several banks on their REO. Many times, we know about houses that are going "into" the foreclosure process. We have to let the bank know when these properties are vacated.

Our banks, will "entertain" and offer, however they require 2 BPO (broker price opinions) to be done and an actual appraisal before they accept the offer. It doesn't matter what the amount of loss is for the bank - they will price/accept an offer based on the current "as is" value.

In many instances, the buyer does have to wait on the foreclosure to be recorded properly so that the title work is correct.

Good luck,

Jo Shaner
0 votes
April Dunn, Agent, Edwardsville, IL
Thu May 13, 2010
Your best bet is to find a local real estate agent who specializes in foreclosures. They will have a relationship with the bank and may have an inside track on properties that have been foreclosed on, or are about to be. Once a house has been foreclosed on, it's public information and you may be able to find it yourself, but a real estate agent who handles foreclosures daily will have access to a wider range of information more readily than someone off the streets.
0 votes
James Gordon…, Agent, Hamilton, OH
Thu May 13, 2010
Sharmain depending on where in the process the forclosure is the property may be available as a short sale. If the property has been sold at sherriff sale but is still in the right of redemtion period you could contact the owner and pay the judgement amount and a little more for them and purchase the property. If the deed has been recorded the property has hit the asset management phase and you could maybe find the right department and right person to talk to at the lender but 99 times out of 100 they will send you to their asset management company. The asset management company will put you in contact with the local Realtor® that they have already contacted about listing the home.
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