Leads past the auction date?

Question

I use PropStream and can filter by Notice of Default, Notice of Trustee's Sale, etc. I can also search bankruptcy leads. I'm not sure I understand the timelines. I see some leads where the auction date has already passed (sometimes even by a long time), but when I cross check the property on zillow or the county records, it is still under the owner's name, and zillow still shows 'preforeclosure'. Should I still pursue these leads, or are these for sure owned by the bank at this point, and the info is just outdated?

Ron S. · Answer

I wouldn't waste my time dealing with bankruptcy leads. You'll have to get a hearing in front of the judge, get approval from a judge, and then have to deal with the requirement to have the property listed on the MLS system to sell/buy the property.

I also wouldn't waste my time dealing with Notice of Trustee Sales leads because if it got that far, the sale date is imminent, and only (All things being equal) a very fast close cash deal would work.

Notice of Default gives you the biggest window of time to put something together. I don't know what your strategy is but assuming you are trying to purchase these homes from the owners before sale, that's the arena that gives you the highest chance of putting a deal together, absent just attending the sale with cash and buying then.

Paul T. · Answer

@Ron S.I am trying to acquire rental properties by taking over people's payments, or entering a lease option with them. I find that even having to pay their arrears is much cheaper than having to drop 20-25% down when buying an investment property conventionally. Often times, I get a decent amount of equity immediately too.

Is this not possible to do after someone files for bankruptcy? If you take title and pay their arrears and satisfy their debt with their creditor, either by payoff or continuing to make payments, does that work?