REO/Pre-Foreclosure

[Jorge Ruiz]

Hello BP! I would appreciate your help here. I am looking at a few properties that I would like to make offers on. Both are SFR's in southern california. Here are my questions:

1. On the bank owned property does this mean the title is clean? Also are the banks pretty negotiable  with their listed selling price if the house needs work on every aspect of the house? For example this home needs to be totally gutted-it needs new drywall, new kitchen and bathroom everything- water heater needs to be placed outside the home (it is currently inside the residence) etc. Maybe even new windows and a roof (I am going to drive by it in a few hours).

2. On the Pre-Foreclosure when and how do I do a title search to make sure title is clean or not?

Thanks BP!

Best,

Jorge

[Eric Dowling]

@Jorge Ruiz on both of these you will be getting title insurance to ensure they have clean title. Title will run a report during due diligence. An REO in theory has a clean title because they clear it up before listing it, but they are humans too and things slip through occasionally. Always best to do your own due diligence.

I would suggest offering what you have to buy it for to get the returns you need. Right now that means the max you are willing to do because there is a ton of competition.

@David Dachtera water heaters outside are very common here. Never seen a basement before, what's that? :)