All Forum Posts by: Robert Davidson

Another good source to search is Realty Trac.  It's nationwide and has good economic information on real estate and foreclosures specifically.

To expand on the five day cooling off period the homeowner has; five days means business days.  Business days are defined as (and many investors miss this) as Monday through and including Saturday.  Sunday and holidays are not.

Don't even think about buying houses directly from any of the 20 or so largest banks. They all use realtors, mostly to avoid liability. Also, they just don't have time to deal with one house/one investor. You can have some success with regional/local banks and don't forget credit unions. I've had success only when I have contacted the bank's asset manager or REO manger (small banks or credit unions) only when it is within a few days after the house did not sell at the foreclosure auction and is now an REO. Because bureaucrats work slowly, it takes them several days to weeks to assign the REO houses to realtors and that is your opportunity. Many banks have an REO section on their website, but make sure that any house shown doesn't reference a realtor contact. If it gives a banker name contact, go for it, but obviously do your value due diligence first.

You can buy a house in foreclosure up to the actual day of auction (most foreclosures in California are postponed over and over.)  The NTS is only a NOTICE of the upcoming sale. However, you must learn the California foreclosure laws.  There is a specific form (Equity Purchase Agreement) the law requires and a five day cooling off period with the Cancellation form specifically defined in the law, (even to font size) where the homeowner can cancel the sale five days after signing the Equity Purchase Agreement or up until 8:00 AM the day of sale.   I can't emphasize it enough - learn the California foreclosure laws. There are things you can not do until the five days has expired. One thing that only two investors I know are aware of is that the homeowner can show up at the foreclosure sale, and before the auction is announced, go to the auctioneer and request a 24 hour postponement.  This is rare but could be handy for an investor trying to finalize a deal at the last minute.

The problem I found is that most Estate lawyers already have a list of realtors to refer their clients to.  Also, a lawyer is usually reluctant to recommend a discount purchase which may be considered not being the best advice to their clients.  if the house needs rehab the lawyers I spoke to said they would let a realtor work with their client to get the best, albeit, disclunt price.

You can buy a house that has an NTS directly from the homeowner. No different than a house with an NOD. The auction is the last and worst step in buying. If there is equity, there will be several bidders at the auction.

One interesting item in that code is that the Equity Purchase Agreement (with it's 5 day waiting period) does not have to be used if the homeowner is not occupying the residence (or one of four residences on the property.)  As to marketing, homeowners are swamped with letters all saying essentially the same thing - e.g. I'll buy your house, etc.  I have found the best marketing to be door knocking.  Even then most homeowners are not motivated to sell.  They don't want to move.  You will have to convince them why it is in their best interest.  I give them information on Keep Your Home California and the various federal prevent foreclosure and tell them I am only one solution and maybe not their best.  This establishes in their mind that I'm not one of the typical sharks trying to steal their house (and yes, that is what they think investors are.)  So establish some Then try to get a second meeting to go over all of their options.

If you mean a private lender, the foreclosure can occur as soon as the legal time limit has passed. However, if you are talking about a bank foreclosing, a recent study showed that the average time from the filing of the Notice of Default to filing a Notice of Trustee Sale is just under a year. And, the average time from filing the NTS to actual auction is approx. 340 days. I've been following a few where the NOD is three plus years ago. Banks have been under a lot of pressure to slow foreclosures.

Be careful. There are some types of judgments that do not get wiped out. Consult an attorney. Child support, for example. In some states an HOA lien is considered a Super lien over and above a Note. To avoid an expensive mistake, consult a real estae attorney.

Don't ever exclude door knocking.  Very, very few investors door knock.  Most people in foreclosure almost universally do not want to sell their house.  They are not motivated sellers.  So you have to convince them why selling to you is a better idea than doing nothing.  Human nature is to procrastinate.  I've found that people in foreclosure have received many letters that all say basically the same thing.  Most that I've seen are unopened.  If the owner flat refuses to sell, consider buying the note at a discounted offer from the lender if it is a small or regional bank or private lender and then foreclosing yourself.  As to renting back, if the owner can't, or won't, pay his note, why would he pay you?  He knows he is getting a free house.

Advertising is a form of inbound marketing.  You put a message out in some way and wait/hope/pray someone will call you.  All can have some success but it can take a long time and you have no control.  I much prefer, and have been more successful with outbound marketing.  One way is what the previous poster mentioned.  Get out and talk to people whom you can help and they can help you.

The other key is to (1.) decide on your target market e.g. pre-foreclosures with equity, pre-foreclosures with no equity (short sales,) probate, owners with very high equity (over 75%), private note holders, out of town owners, owners of multiple properties, etc. etc.  (2.) Establish an outbound marketing program - phone calls or door knocking.  Go to them, don't sit and wait for them to someday decide to contact you.  While a letter would be good for an introduction (such as probate, out of town owners , and private note holders) I follow-up with a phone call no more than four days later, or visit if local.  Face time is key to fast success.