I know someone that works for a lawyer that represents banks when properties go into foreclosure. Now I am new in to the real estate world so please bear with me. This particular person works in a department where he has access to files that go pretty much in the following order:
1) Owner of property defaults on mortgage
2) Bank sends lawyer a referral to start paperwork to foreclose on property
3) They have to set a hearing to the judge so that the client (bank) can explain how defendant defaulted on the mortgage
4) When the judge grants it, the foreclosure process starts and the property goes to sell
5) They then do a notice to sell in the news paper for a certain date that the judge sets the sell
6) When sell day arrives, its like an auction in the courthouse, and client (bank) shows up, person that defaulted may show up to bid, and any third parties interested in the property.
My question is, is there anyway I can take advantage of this type of connection when in the wholesaling business? If this particular person tells me a particular property is about to go into foreclosure for example, sounds like a distressed property/owner and possibly distressed client (bank) because from what i hear banks do not like to hold real estate property. Is there a way I can tap into this as a source of deals I can get a hold of and package it together to my buyers list? He told me 70-80 properties go through a week, and the whole process takes about 30 days. He told me once a property was sold for $100 to a third party because the client (bank) and defendant did not show up at the court for the sale. My connection also told me this firm has a title company as well. Please let me know if there is anyway I can take advantage of this connection.
