Is it true you can buy from the bank at the court house?

[Shari Posey]

Forbes magazine had an article about an investor who attends court house auctions and approaches the bank AFTER nobody bids and the property reverts to the bank, he is able to strike a deal right there on the spot. I've never heard of this.

[Jon Holdman]

Interesting approach. I wonder how many of the bank's reps that attend these auctions are in a position to make that bargain? If they are, or even if they are able to make quick contact with the person in authority, it might be a good way to at least make a quick deal. Seems like they go into the processing black hole and don't get listed for months, most of the time.

[Shari Posey]

Forbes (the recent issue) profiles a guy who claims to have done this twice and then flipped the properties for more than $400,000 profit after cost of selling.

[Donte Mazyck]

i need to google that issue, is there online access to this article to save me time?

[Mitch Freed]

This would certainly streamline the REO process if more banks had their reps show up...i've never seen one come to an auction in Portland though.

Did the article mention what city this investor is working in?

I imagine it is a specific bank he is working with...probably a local one that has less loans out there than the slow moving giants. They will have more time and resources to do due dilligence, especially if they are a local bank.

[Lee Common]

He probably knows or has built a repour with the bank rep. and simply purchases for the min. bid the bank will accept on the cool. Either way he still must have the cash on hand.

[Kathleen Couch]

Yes, it is true. Two different investors working in different counties in the Atlanta area have reported. These are cases where they have already been in contact with the loss mitigation dept. and can call that person direct. There are no reps. at the auction. Let's say they would not short sale the property, or the second would not cooperate. Right after the auction, and the property has gone back to the bank, the file is still on the loss mitigators desk. This means immediately, not the next day. The loss mitigator will sometimes agree to sell at the short sale price, before it goes to another department, and in "limbo". Also, the second is wiped out.

Yes, you do still have to have cash for the offer. And, it is a relationship that does not start then, but over time with working on a short sale, or with a certain loss mitigator.

I have not done this myself, but when some of my cash isn't tied up in other properties, I would like to try it.

[Shari Posey]

Along the same lines, does anyone have experience when an HOA forecloses on delinquent dues and the property goes to auction?? My title company told me that the minimum bid is to cover the HOA lien and that any first or second-lien holders are lost. Of course, you also have to bring taxes current. Is this true?? Usually the min. bid is pretty low and easily covered with cash.

[Jon Holdman]

Don't know about there, but its true, at least to some extent, here in CO. Some portion of the HOA dues can be filed in a position senior to even a first mortgage. However, that doesn't eliminate the redemption period for the other lienholders. If someone what holding a $200K mortgage, they would certainly redeem a $2000 HOA lien to protect their interest. No idea exactly how the law works in CA.

[Jason F]

Here in Florida it is usually some para-legal attending the auction for the attorney handling the foreclosure. If it's a institutional lender foreclosuring I would be willing to bet the person holding the file at the courthouse does not have permission to sell the property.

Now if the foreclosing party is a private lender, that might be the case.