Forclosure under assignment

[Steven Hiscock]

I am interested in a bank owned foreclosure which is currently listed on the MLS and under assignment. The MLS listing is almost a year old. I am wondering if there are different strategies to try to get an offer to the bank without the third party involved. Are contracts with a bank typically for a year or other time period? I've never transacted with a wholesaler before, how much does that complicate the process?

[Will Fraser]

Oh boy, buckle up for a wild (yet painfully slow) ride here! REO properties (bank-owned) are notoriously slow moving and wholesale deals are notoriously poorly-disclosing. What you'll get when crossing the two is anyone's guess.

It is not uncommon for the bank to "need" anywhere between 4 months at 2 years to transact, and if there is a wholesaler involved it will create an even fuzzier picture unless you can cut to the source.

I would recommend emphasizing that the wholesaler's fee is protected (IF the price you've discussed with them is workable) and that you will do protect that vigorously, BUT request (or require) that the wholesaler connect you with the agent representing the bank.  

To assuage the wholesaler's understandable fear of being cut out of the deal (or exposed) you can intentionally include them on all communication.  This is a happy middle that should allow you to fully understand what is happening with the bank AND the wholesaler to get their $ and go on to the next deal.