How to get this one property?

Question

Could really use some advice again on picking up this one property. It's in Atlanta, Georgia if it matters and it would not be for investment really, but a place to renovate and live. It's an unusually style that is in really poor condition and we would like to save it it. I've had the chance to look it over well and the renovation part does not bother me, how to actually buy it does and is where I need some advice. It was to come up at a live foreclosure auction at the courthouse and it actually appears to be the second time they have tried to auction the property. I was set to bid at the auction but closing on the house we were selling was pushed to the same day and I could not attend. I contacted auction(.com) and was told it did not sell. The property is still listed on real estate sites but has 'pre-foreclosure' on the description. The encumbrance report should that the bank, MidFirst, was foreclosing and it is the senior mortgage so we should be okay and have no surprises on the title.

That is the background. The question for you all is how best to try and pick up the property. I've read all the discussions about not being able to deal directly with the banks to buy properties but would really like to hear from a couple of you all if it seems possible at all to buy this soon? If so then how to go about doing it. We are not adverse to paying a professional for help if we need to but really would not know exactly what pre to hire. Any input on where to start would be very much appreciated. I know everyone thinks the house they want is the ONLY one that will ever be the ONE, but this one fits us well and I cannot even express how much we want to purchase it. Enough to overpay a lot if needed.

Joe Henderson · Answer

No, I am sure it was a foreclosure auction.

Wayne Brooks · Answer

Okay, then this was an REO auction, of a previously foreclosed property....not the foreclosure process auction.

Joe Henderson · Answer

I have some more information I'll share in case it helps. I spoke with an agent at auction.com and was told the property did not sell since it did not meet the reserve. A call to the REO manager at the bank seemed to imply they would be happy to sell the property as soon as their contractual agreement with the auction site was over. She said they always tried twice at the foreclosure auctions before moving to the next step.So not great news but not bad either. Appears we will need to wait and see what happens.Interesting to note that at auction.com they provide some reserve price consulting for the online auctions. They do not provide this service for live auctions. She seemed to be saying if you give an idea on your max bid they will hint at whether it is enough or not. Did not apply to this one so I did not push it.

Joe Henderson · Answer

It was called but no one bid. The support person for the auction told me it did not sell.

Wayne Brooks · Answer

@Joe Henderson To be clear, what does "it did not sell" mean? Either the auction was cancelled, or it went to the foreclosing bank. If it was cancelled,mother bank has no authority or control over it yet, they don't own it. If there is no chance of making a deal with the heirs, and going thru a probate in time, simply wait for the next auction date. If the auction did occur, and it went back to the bank, then either wait for it to be listed, or show up on an REO auction site.....the bank won't deal with you individually in the mean time.

Joe Henderson · Answer

Thank you Richard, that was good information. I must not have explained it well- The auction happened 3 days ago and in Dekalb County, not Fulton, although I am sure it is not any better there.I will contact the law office noted on the auction page and see if I get anywhere.

Richard Balsam · Answer

If the house was scheduled for auction- it must be advertised. The ad must show the law firm. Speak to them. Since it is their job to advertise to the public of an upcoming auction- it is their responsibility to alert the public and answer your questions.Depending if there's any title issues- it may be best to get the house at the upcoming auction - with other people you hire if necessary- to listen for the house to be called. Since there is no particular order for the houses to be called at auction ( and the Fulton courthouse is a trainwreck -literally, to hear them call the house) - you will need a few people to listen for the house being cried out. For example- what if the attorney's office has two people crying the house- and only you show up? What if the attorney uses a service like Verifyd - who utilize anyone they decide to hire- (and they do have multiple criers), and don't care if anyone hears them - you will need multiple people to help. I've attended auctions to hear certain houses- and missed them - if they were called at all.Good luck- keep following up with the house!

Joe Henderson · Answer

Thanks for that thoughtful response Nick. This property is not unlike the one you liked. The owner is deceased and it appears the family has no interest since it is not worth anything to them. I feel I might have the same issues to contact the bank but will try. Hopefully someone might suggest another route- as a realtor you had the advantage over me for sure.There are plenty of ads for 'foreclosure specialists'. Any inout on going that route?

Nick Fitzpatrick · Answer

Joe, I don't have an exact answer for you but I tried to do the same thing in April of this year. I failed but maybe you'll have more success. While browsing the public notices I found a property in my neighborhood that was going to auction. I realized it was a house I pass all the time and would be a terrific deal. The land alone is worth 5 times the remaining estimated loan balance. 1) I called every number I could find for the owners and Googled them. I found they were deceased so I quit that route. 2) I called and emailed the attorney that had posted the public notice asking if I could buy before the auction. They replied no. 3) I tried every route to reach the bank and was impressively stonewalled. It was impossible to reach a live person. 4) I attended the auction where it was not auctioned. (This one wasn't going through Auction.com, though I imagine they won't be helpful. 5) Thinking the property was vacant I still knocked on the door and it looked like someone lived there. I walked my dog by there 3 times a day until I ran into the resident. I told her I wanted to buy and she said they weren't interested. (the deeded party was deceased but I thought she'd give me information.) 6. I wrote an offer (I am a Realtor so it was easy and took 5 minutes) and brought it to her the next day. She said no and that the family was fixing the issue. Long story short, some of these options may help or be useful. Maybe not, I don't know as they didn't work for me. If you want the house, it's worth trying.