Silly question: Who to contact to see REO property?

Question

Good Evening-

Please pardon my ignorance on this subject.

Today on Zillow I found a listing for a duplex in my local area.  It is listed as for sale by owner.  I searched realtor.com and every other site I can think of, and the property is not listed anywhere that I can see.

Based on a search of the property records (I am an abstracting attorney here in Iowa), it appears that the property was sold to the bank at sheriff's sale without the right of redemption back in August 2015.  According to Zillow, it was listed with a source of Keller Williams from September 2015 through November 2015.  Now, on Zillow I do not see any listed agent.

I drove by the property today and do not see any signs or other contact information at the property.

The main reason I want to see the property is that the assessor's sight and the zillow listing are off on the number of bedrooms.  If the listing is correct, I am interested in making an offer.  Who do I contact to see the property? Is this something that will be on the MLS that I need an agent to view?  Is there a way to contact the bank (DUETSCHE) directly? The foreclosure trustee?

Again pardon my ignorance and the long post.  I appreciate any help that anyone can offer!

Ronald Bourgeois · Answer

- It's possible that at some point in time the previous property owner may have contracted a Real Estate firm to perform an 'Entry Only MLS listing' and Zillow may have posted it as a FSBO.

- Rarely will you see the actual listing agent on any Zillow or Truilla listing, as these are paid positions to provide leads for the Real Estate Agents who you see next to the property data. (Usually 3)  They have nothing to do with the actual property, they would only act as a buyers agent.

- The most frustrating part of REO is trying to find/contact the AMC Asset Management Company who will select a Real Estate Agent to List the Property.  Generally all REO properties are either listed with a Real Estate Agent or on an Auction Site.

- If you or an associate have access to your local MLS have them do a property search and see who the former listing agent was and contact him/her.

- If you feel comfortable doing this, drive up to the property and start asking some questions.  You'll be surprised how 'flabber-mouth' the neighbors can be.  I use a local coffee shop gift card for $5.00 and place my business card behind the coffee card in their envelope and present it as a small token of my appreciation for some information regarding the property. Best $5 bucks you'll ever spend and if the spouse is present make sure they get one as well.

Best of luck to you, I do this all day long and it can be frustrating BUT the rewards keep me at it.

-ron

Jeff B. · Answer

Hmm;  Experiences vary, don't they, one  size doesn't fit all - - the devil is in the fine print :)

Ron S. · Answer

"existing liens in place"? There are no existing liens in a foreclosure sale. At least not any existing liens behind the foreclosing entity.

Jim Wilson · Answer

@Matt Holmer

This is one of the problems with Zillow, either false or outdated information. If you can find out which agent had it for that short period of time you should talk with them about it. Most likely they are an REO agent and can let you know what's going on. If not you'll just have to wait for the bank to list it with another agent. I have never seen a bank do fsbo. They are in the lending business not real estate sales. Calling the bank directly will be worthless also. If you can even track down the right person to talk with at the bank they will tell you to wait till it's listed.

Wayne Brooks · Answer

NA BeardContact the agent that it showed as being listed with for a short time.  They either found some title/foreclosure issue and pulled it back off the market, or sent it to one of the REO auction sites...auction.com, homesearch, etc.  If you google the address, and it hit one of those sites, it'll likely show up.

Ron S. · Answer

Well...since we seem to be splitting hairs, if the sale precedes the tax due date, why would there be a tax lien? and no, we don't frequently defer taxes for an anticipated future sale date. Once we take a property into REO, we pay the taxes due and past due as well as any other costs associated with the acquisition of a property through REO. It's standard operational procedure to pay taxes. Often times, we pay taxes PRIOR to foreclosure sale if they are delinquent so as to avoid additional penalties and/or interest. We advance them knowing the borrower isn't going to pay them and, knowing we are going to have to pay them anyway. Even if we don't pay them right there and then, they are going to be on the HUD reducing the net proceeds to us at close of escrow once we sell it.

Jeff B. · Answer

That's not always  the case and not a requirement - - they frequently defer taxes if the sale precedes the tax due date - - wouldn't you?

Jeff B. · Answer

A TAX lien is not wiped out - - nothing is superior to it.

Matt Holmer · Answer

The property is owned by the bank (Deed transferred after Sheriff's sale), which is weird that it is listed as a FSBO on zillow.  I would obviously need to pull the foreclosure documents, but from a cursory review it appears all the liens were properly discharged in the foreclosure.

Jeff B. · Answer

hmm;  For Sale By Owner == FBSO, ergo 99% of the time not on any MLS.

Sheriff's Sale is the end point of a foreclosure process which was proceeded by Notice of Default and Trustee Sale, also not on the MLS.

REOs typically do not get an eyeball inspection are are sold as-is with existing liens in place.

The defacto authority for a property configuration ( x/bed, y/bath) is the County Tax Accessor's office and if you find inconsistencies with other data, suspect un-permitted changes.

Silly question: Who to contact to see REO property?

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