All Forum Posts by: Stephen R.

I'll preface this by saying that, yes, I am new but I am trying my best to understand how the foreclosure process works. I've done enough education, trying my best to avoid analysis paralysis and made the decision to take action. So I dove in head first...and hit a rock. So now I'm in a rut because I can't seem to figure out what it is that I don't know. 

I'm looking to buy a foreclosure. Every book I've read says the trick lies in "finding" good deals. So at first I searched the places newbies usually do (Zillow, Realtor.com, etc.) However I soon learned that these sites are not the best and the "good deals" have usually been picked clean already. So I signed up for a few premium service (foreclosure.com, Realtystore.com, RealtyTrac.com) However I seem to spend a lot of time weeding out the untimely and inaccurate listings even in these "premium" sites. I then went directly to the county, state, city judicial website and looked up housing/foreclosure cases in my area. Surely the court documents would at least be accurate and timely. And they are. Great, now we're getting somewhere. 

At first I thought it was fantastic. There were a ton of properties that are listed as bank owned. I can go directly to the source instead of relying on second hand information. The example property I found had a judgement for strict foreclosure so, if I understand it correctly, it is officially a REO. Since I know I can't call the BofA foreclosure department, I reach out to the foreclosure attorney. Most don't call me back. I was finally able to make contact with one attorney who told me "they won't call you back." I'm sorry, what? Isn't the objective to sell the property? How does that happen if they won't deal with a potential buyer? Other posters said I had to wait for the property to hit the MLS or go to auction. Which brings us all the way back to the beginning.

So what am I missing? A password? A secret handshake? Is there a difference between a foreclosure that the bank wants to sell and one they are perfectly happy to sit on for years? I thought the whole objective was to find them before they hit the MLS (since I don't have MLS access) and for the bank to get them off their books as quickly as possible.

I've done my research and analysis, learned the market, secured financing and a team to complete the work, yet when I try to make an offer no one wants to hear it. 

-Frustrated

Welcome Aboard Steve!

I would second what @Paul Kaflinski said above. Check out the Fairfield BP meetup. It's generally held the last Wednesday of the month at Anna Liffey's on the Post Rd in Fairfield. It's a great group of people. As Paul also mentioned, reach out to @Jonathan Makovsky for confirmation of the next date and time. 

Hope to see you there.

And which area of real estate investing interests you? 

-Stephen

Although there is some disagreement on the subject, common wisdom tells us to verbalize our goals in order to increase our chances of success. So here goes...

I only began my real estate journey a few months ago but I'm committed to making this work. 2017 will forever be known as The Year of Action. 

1 year goal- Purchase at least six (6) properties in 2017. This will be a combination of fix/flip, lease option and buy/hold. I had originally set a much higher goal but two events have tempered my ambition. My wife and I will be closing on a SFR next month (not included in the goal) and we recently found out we will have, not one, but two new additions to our family this year.

2 year goal- No more weekends, beginning 2019. Without being number specific, my goal is to generate sufficient passive income to eliminate all weekend overtime at my W2 job. 

3 year goal- Private school for my three children. Generate sufficient additional income/reserves to fund private education for my children. I have established Coverdell Education Savings Accounts and have made funding them priority number one by the time they reach kindergarten. This will be a combination of the proceeds from any flips, or sufficient passive income allocated to cover tuition going forward.

5 year goal- Financial Freedom. This is my most ambitious goal but one I think is attainable. Ultimately, I would like to move out of the evil Northeast, to somewhere warm and friendly, where the residents celebrate July 4th and not April 15th. (assuming I can make it past the border guards and the barbed wire fences)

10 year goal- To infinity, and beyond! This one will be refined as time progresses. But as my son says, in the words of Buzz Lightyear...

Now, although I consider myself self-motivated, at times we all need support and encouragement. This is why some people claim we should not verbalize our goals (we find affirmation and encouragement merely in making goals rather than attaining them) however, I still believe in the power of positive energy. Of course, being new to the game I feel as though I take more than I give, so in an effort to give back, and as an incentive to you all to help keep me on track, I am planning on raffling off a new iPad Pro to anyone who assists and encourages me in reaching my 1 year goal. If successful, I will enter the names of anyone involved and randomly select a winner in January 2018. I can't estimate your chances of winning* but will say that "failure is not an option." 

Okay, that's enough talk. Let's do this thing...

* (Enter legal disclaimer, blah, blah, blah)

Thanks @Wayne Brooks @Kelly Durrant and @Jeff Rabinowitz

I just spoke to the defendant's attorney and he confirmed that the foreclosure attorney would likely not speak to me. 

Kelly, I do have contact information for the heirs and will reach out to them. Another poster recommended that I wait until the property cleared probate before contacting them. Also, the anniversary of the owner's death just passed a few weeks ago and felt as though it was an inappropriate time to talk business. 

Jeff, if I understand the process correctly, the family does not have the authority to sell anymore. It went to probate and then foreclosure. I tried to beat the clock before the "law day" passed a few weeks ago but was unable to reach anyone. As it stands now, I believe the bank controls it. 

To answer your question Wayne, no, there is no equity in the property. The debt was found to be just over $134,000 not including attorney's fees. A recent appraisal valued the property at $90,000 however that was a "drive by" appraisal that does not account for the condition or damage to the interior. (I know that a water leak destroyed one of the bathrooms while it was vacant.) 

I have been following the case on the state judicial website and the most recent status is a recent "notice of judgement of strict foreclosure." 

So what don't I understand? Because I feel as though I'm wasting a lot of time, not only this, but on similar properties I'm researching. Yes, I'm new, and I've tried to educate myself on the process, but apparently I'm still missing something. I located the property, did my analysis, worked all the numbers, gathered team members and finances and would like to make an offer. Although it seems that no one wants to take it. All of my reading seemed to leave this whole part of the equation out. 

So the question becomes, at what point would I be able to purchase the property, and who do I contact to do so? 

Thanks @Jeff Rabinowitz

I do know that the owner is deceased. The home just came out of probate and if I understand the documents correctly the attorney is handling the sale. 

This may just be me venting but... I'm interested in picking up a foreclosure so I tracked down the law office that is handling the case. I've called the office at least a dozen time and left 5-6 messages over the last 2 weeks. I still have yet to receive a call back. It's as if they don't want to sell the thing! 

Does anyone have any ideas? Is there a way around the attorney?

@Christopher Phillips

Law day doesn't matter in general or in this scenario? Let's assume the property were not underwater, then contacting the family or the attorney before law day would allow me to purchase the property for the cost of the debt, "redeeming" it, right? Isn't it only bad in this situation because the debt exceeds the FMV?

And, yes, I was being sarcastic;  I wasn't holding my breath waiting for the attorney to call back. 

I'm looking at a property in foreclosure, or pre-foreclosure. The "law day" is set for January 31. (I'm in CT.) The property is upside down with the debt exceeding the FMV by about $48k. It will need somewhere in the area of $25-$30k in repairs. Debt of $138K. Recent appraisal of $90k, before repairs. (The appraisal was a "drive by.")

It seems that, with my limited knowledge of tax laws and the foreclosure process, that waiting until after the law day would be the best route. I have put in a few calls to the attorney's office handling the case but, to my surprise, haven't heard back yet. 

Does anyone have experience with this? Is my assumption correct? Do I really push it to get in before the deadline or relax and wait until after?

Hi Scott, 

Thanks. I've been looking for months and then I started to think creatively. BP has been a fantastic resource  and I thought maybe someone has seen something that doesn't work for them but might work for me. 

To answer your questions- yes, Kit has already pre-approved me. I haven't decided on the particular financing option; I suppose I'll match the right tool with the right job, once it comes along. Don't people say "find the deal and the money will follow?" 

Thanks again for the well wishes. I'll let you how it works out. See you at the next meet up.

Stephen

Have you analyzed a deal and discovered there wasn't enough profit to flip or wholesale so you discarded it? Might it make sense as an owner occupied rehab? What if you could make a "finder's fee" just for having analyzed it? Then maybe I can help you, while you help me. 

I've just begun my journey in the world of real estate investing but I am also in the market for a new SFR for my - surprise - growing family. What I am looking for is a property that you may have analyzed as a potential deal, that didn't have a large enough margin for a flip or wholesale, but is still below market value and may hold potential as an owner occupied property. I am looking for a REO, short sale, MLS, off market, anything that may fit my criteria. My wife and I have been looking for a 3+ BR, 2+ BA, > 1800 sq ft SFR with a decent yard for kids, in the Monroe, Newtown, Trumbull, Shelton, Connecticut area for less than $350K including purchase and rehab.

If you have anything you would otherwise pass on please reach out to me and maybe you can still turn that not so good deal into a money maker.