All Forum Posts by: John Slater

@Shenell Caldeira

Hi. Are you asking about a bank owned property, or a property currently in the foreclosure process. If the latter if very hard to speak to someone. The lender will only communicate about a specific loan with the borrower. Getting to an asset manager to buy a note is not impossible, but definitely not easy either.

I just took a quick look at my local county for the last two months, and was shocked by Novembers numbers.

numbers for December.

206 properties were posted for Auction

6 became REO's

16 Sold to a 3rd party at the auction

58 were cancelled completely

126 postponed till the following month

Total of 22 properties were either sold at auction or foreclosed on, 10.6%

Numbers for November

198 properties posted for auction

31 became bank owned (WOW!!!)

26 Sold to 3rd Party at the auction

69 Cancelled completely

72 Postponed

Total of 57 properties were either sold at auction or foreclosed on, 28% !!!

@Bruce Lynn

In Riverside County, California, very few go all the way to auction sale. Many get postponed till a later date so it’s not easy to track.

The fact is in a market where most homeowners have equity they are much more likely to sell versus letting it go to auction, but around 7-10% of properties listed at auction on a given day here will sell that day, the remainder being postponed, and when they sell at auction, They sell for 60-75% of the property value.

I agree with Michael's points - its great to get your ducks in a row and have investor contacts whom you'll try to wholesale to.  That being said, if you get a good deal under contract, finding a buyer won't be that hard.  Some investors do a lot of business waiting for wholesalers to bring them a deal.  

Only other side for me is working out your lead strategy... what types of leads are you going after?  Wholesaling being your exit strategy, now its about you finding leads... vacants, tax defaults, pre-foreclosures, probates... some of these types of leads require more knowledge than others.  Not sure what is astroflipping, but subto (pace is probably the most known for this) is an acquisition strategy and comes with other potential things (tenants, renting, rehabbing)... wholesaling at the end of the day is less headache, quicker return kinda thing, but all starts with finding a lead...

I know other states have longer periods, but in California, if you buy at auction, you won't receive the deed until 45 days after (non-judicial process) - longer in judicial process but doesn't happen very often in cali).  That gives a tenant a 30 days redemption period (SB 1079) Only after that can you get title insurance.  We also aren't seeing the big players at auctions yet... Not like it was back in 2011 etc.  In my local county, small time investors, contractors etc seem to be the only ones shopping at auctions.  I feel this will change in the next 6months or so when the big guys come shopping to pick up rental portfolio's.  

From what I understand in Michigan, yes it would be 1 year redemption based on amount of mortgage owed for value of property, however the bit I don't know is how that changes when the owner has passed away... and are the same rights afforded to the heirs. The owner has right of redemption, and I believe the right to live in the property through that period of redemption.  It would seem logical that the kids would have the right to file probate, does that mean they then have right of redemption?? As Nathan said, best to check with an attorney on that one.  Its a long time to tie up your money, but at the right price, is it worth it to park your money there for a "no lose, possibly double your money" scenario...

@Patrick Mahoney Its all about the numbers to be worth enough for the potential headache.

I'm in so.cal, worked with 1st's and 2nd's in foreclosure.  Chances are this is a loan that hasn't been paid for a long time. 2nd's started to reappear and foreclosure as the market increased and people had equity.  ELOC's were super common back before the 08 crash as people took out equity.  If you buy the 2nd at auction, yes you own the property, subject the senior 1st loan.  Here's the challenge.... you own the property but have no access to the lender of the 1st.  The current owner is the only person who can communicate with the lender.  Now, its kinda in their interest to work with you because if not the lender of the first will also foreclosure thus giving the current owner a 2nd foreclosure on their credit.... having got one, how much do they care about a second one?? and if they don't care, they could simply do nothing, The first foreclosures, that goes to auction, and you could be left with nothing...  

How far away is the sale date?  I would personally try to speak with the current owner to see what they are doing and see if there's anything that could be worked out with them to help them avoid foreclosure totally, but still they'd need to sell.  Feel free to DM me, not sure if you have access but I can look up the loans and access a mini title report to give you a better idea.

@Robyn Gersh

Hi Robin. I agree with others, answer is no, but there’s more to it. I understand probate, tax and foreclosures, happy to answer any direct question, feel free to DM.

@Jim L.

And simple answer is yes.

You need to be working with seller, need their help to postpone auction and foreclosure etc, but I’ve wired to a lender 2 days before auction and stopped a sale. BUT that’s having communicated many many times with lender that it would be accepted and I needed the seller involved of course as it’s his/her loan.

@Randall Alan

Most of what you mentioned it part of the process for sure, but I agree, work directly with the seller, you have to know for sure if it’s a deal to be in or walk away from.

I’ve bought a real horror story property, but it was sooo cheap it didn’t matter, we dealt with it, took time, but there was always enough profit to make it worth it. Others I’ve walked away from because the seller wasn’t going to play ball.