Basic Question 101 type re: buying directly from lender

[Clary Roberts]

A home goes to trustee sale (in Arizona) and no bidders.

Home goes back to bank.

I will gladly pay cash (my own money) and buy as-is for more than they can net if they list on MLS.

Are the banks (in general..this one is PennyMac) so set in their ways they ONLY send it to REO department to go through their system or is there a chance I could talk with a live person who might understand that they will net more, close in days by selling directly to me vs MLS???

I'm sure not getting very far today with this.

Tiffany and Bosco said to call them after 3 pm and they will give me beneficiaries telephone number; that's when they'll have notice / results of the 11 am bid this morning.

Happy Thanksgiving and thanks in advance for helping me understand this process.

[Bill Gulley]

The issue is due to regulatory requirements, that ORE/REO be exposed to the market in order to obtain the highest price available in the open market. This keeps banks from being "in" the real estate business.

Another matter is that if a higher price is obtained than what a borrower owed, they still have an equitable interest, the borrower can be entitled to excess equity after a lender receives all they were legally due. (BTW, that goes for private lender types as well!) Making loans is an extension of credit, not a method to buy collateral. 

If a property were sold below a payoff amount and the property wasn't offered to the public, the lender could not seek a deficiency judgment for other amounts due.

Just wait till it is listed and go buy it, better off going to a foreclosure sale however. Good luck :)