Wholesaler · Orange County, CA · Member since 2011 · 42 posts · 0 votes
I don't get it- there's over 4 million properties that are over 90 days late or in pre-forclosure (source: doctorhousingbubble.com)
Wouldn't banks _love_ to get these properties moved? (or not? And why?) I understand they can't release too many properties on the market at once as that would saturate the market, cause home prices to drop and cause other homes to strategically stop making payments...
But still, what is our major obstacle in acquiring these properties for cheaper than at foreclosure auctions?
(is it that we have to convince the current occupants to leave? What if it is abandoned?)
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
15y
Many are "underwater" so the property is worth less than the mortgage. And for those that aren't, you need to deal with an owner who generally is not approachable. That's been my experience.
Rehabber / Flipper · Simi Valley, CA · Member since 2010 · 597 posts · 259 votes
15y
Like Chris says, the vast majority of these homes will be underwater. This means if you want to buy it, the lender will have to agree to a short sale. A short sale takes a lot of time to push through and a lot of work by someone who negotiates with the bank/lender.
Many of these underwater houses are (or will be) listed for sale as short sales, and you can buy them. But it is not likely you can just find one, place an offer, and have the house in a couple of weeks.
Also, if the owner doesn't want to sell the house, the bank can't sell it because the bank doesn't own it. In these cases, the home will likely go into foreclosure, at which point the bank very likely will end up owning the house.