Buying REO from Citi

[Jason King]

Hi All, 

Newbie investor with a question about an REO in my area that I am hoping someone can assist with. To give some background, I have been searching my area for abandoned/REO properties that have not made their way onto the MLS yet, hoping to score a good deal. In my search, I actually found a home down the street from my primary residence that was foreclosed on last spring. All of the main real estate sites I check (Realtor.com, Zillow, etc.) list the most recent sales transaction as 1999, but performing a more robust search I was able to find a foreclosure deed from last year, with Citi Mortgage listed as the new owner.

Now, as I originally stated, I am a newbie and have no experience dealing directly with a bank, but is there a way to contact the bank to try to buy this house before it hits the MLS? The transfer price on the deed is WELL ABOVE market value, which is most likely why this property didn't sell at auction - is this an indicator that it is going to be tough negotiating a reasonable price?

Also as an added bonus, there is a sticker on the exterior of the property stating that my local town building inspector's office has deemed the property as "unfit for human habitation..."...not sure if this is common practice or a red flag but will have to dig into this one a little further.

Any help you guys can provide would be greatly appreciated.

Thanks!