All Forum Posts by: Nick Paul

@Boyd McClean It's in reference to a lender foreclosure.

@Jay Hinrichs I've tried finding a broker here locally that has experience with this, however, I've yet to find anyone that is knowledgeable on the subject. 

You mention that you make an offer to purchase redemption rights prior to the sheriff sale. Is there any ability to purchase the redemption rights post sheriff sale? Also, if there is no equity in the property based on the current loan value, do you ever pursue buying the right of redemption? I would assume not, however, the reason I ask is because a local agent that lists VA foreclosure in my market had a property that she was notified by the VA that she'd be listing. Come to find out, an investor was able to step in and purchase the property prior to that happening. I was assuming the investor bought the right of redemption and simply waited until the last couple days before the redemption period expired. But that would be post sheriff sale. Would I be correct in that assumption?

I'm trying to find someone with knowledge about the Right of Redemption in a judicial foreclosure state (I live in New Mexico). I would like to better understand the process of buying the right of redemption. I've had several foreclosure deals lately that were expected to come to market but an investor purchased the right of redemption and subsequently was able to secure owning the house before the property was listed on the open market as a foreclosure sale. I'd appreciate anyone with knowledge on this process allowing me to ask questions.

Thanks! 

I agree with Guy Gimenez ....unless there is specific language in the listing agreement stating she is unable to discuss specifics with any potential buyer she should be able to provide you with figures...or at a minimum ballpark numbers. I'd contact her again and, as Guy stated, ask her why she feels she is unable to disclose that info. Also, it may be worth asking her hypothetically, if she must sell what would be her bottom dollar price she could accept with a realtor involved to prevent a foreclosure.

@Paul S. , the market value and any rehab costs you have are much more important than whether to aggressively low-ball offer or only slightly low-ball offer on the condo. That said, if the property is listed at a very attractive price you can almost guarantee others are tracking it and looking to submit offers. I would try to contact the listing agent and ask if there has been much activity on the property. If so, run your numbers and determine what the highest price is that you'd pay for the property and get an offer submitted. If there isn't much activity then through in a low-ball offer and see what kind of response you get.

I don't know of any easy way to determine whether or not there are drainage issues without the ability to have running water. The only thing you might be able to do is have a plumber snake a camera down the drain pipes to see if they can find anything that may be a problem. It can be pricey though for them to come out and provide that service though. In my area it typically costs roughly $150-$300 depending on how long they are at the property. If its an hour or less it'll usually be about $150....if it's longer than that it can easily double.

Curious if anyone else comes up with other options.

Anyone here asked for a price reduction on a VA foreclosure once it was under contract?

Monday I was informed that my highest and best offer was accepted on a VA Foreclosure. My inspection period is 7 days. Listing Agent gave me the ok to contact utility companies about turning on service so I could fully inspect the property. Had the electric company at the house this morning. Unfortunately they were unable to connect service due to the fact that the cover panel on the meter box had been tampered with. The guy from the power company said he would check at their shop to see if he could find a cover panel so he could get me service to the house. He was unable to find a cover panel that would fit since the meter box is so old. That said, the power company is required to completely disconnect power lines from the house. Now, in-order for me to reestablish service I have to update the service panel and meter box to the house which has to be permitted. This will likely run me anywhere from $1,200-$1,800.

I'm curious if anyone has ever been successful at asking for a price reduction on a VA foreclosure when something materially significant has been made known during your Inspection/Due Diligence Period? Any insight as to how the VA may handle this is much appreciated.

My thinking is that the VA will simply reject my request for a price reduction as a result of this new information coming to light since they had multiple offers on the property.

@Robert Peters  

What's up bro!? Good seeing you on biggerpockets......keep soaking up all the info. The more knowledge you obtain through biggerpockets and other medians will be the key to your success. Let me know if you wanna come check out the houses I have under contract at the moment sometime this week. We can walk-thru the properties and I can start to give you some insight as to what I do from start to finish on the flips.

Hey @Jason Rigby ....My friend from high school lives up in ABQ and is a realtor. She's personally flipped property and I'm sure she'd be happy to help you find some good foreclosure deals. Here is her contact info...... she was recently married so her last name is now Cruz.

REO list prices in my area have been the same, and I'm by no means in a major market. The majority of REO's hitting the market here over the past 8+ months have been significantly overpriced (based on their current condition). A good majority are sitting on the market for 4-6-8+ months until the price has been reduced enough to warrant an investor purchasing the property. The only REO properties that I've seen reasonably priced are the VA foreclosures. I've been purchasing quit a few VA foreclosures while waiting for other foreclosures to drop their price to a point that makes sense for me to begin pursuing.