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DDFP
Posts: 1
Registered: ‎08-22-2009
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How to buy a foreclosure that isn't in the MLS yet?

Hi all- I'm sorry if this question has been asked before, but I couldn't find it.

 

I'm signed up at a foreclosure-listing site, and I see that there are plenty of foreclosures that haven't hit the MLS yet.  How does a normal person who just wants to but a house (and avoid bidding wars) buy something that hasn't hit the market yet?

 

 

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RMS
Posts: 458
Registered: ‎06-07-2009
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Re: How to buy a foreclosure that isn't in the MLS yet?

[ Edited ]

You buy all cash from auction and take house without viewing it, liens attached, and evict owners.

 

Don't you think all of us 'normal people' want to avoid bidding wars too?

Message Edited by RMS on 08-22-2009 10:11 AM
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mynamesbroke
Posts: 7
Registered: ‎06-10-2009
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Re: How to buy a foreclosure that isn't in the MLS yet?

I once got a foreclosure list from Realtytrac. Several of the houses were already listed and some had already sold. I also saw that some were not on MLS yet and thought I'd get a head start on the shopping. I drove by and saw a sign in front of one them and got out to look around. A neighbor was out sweeping and he happend to be a real estate agent and he let me in to see it. He said he had called the listing agent himself to ask about it and could get never get a price. Apparently they hadn't fixed on eyet. I got in touch with the agent (in spite of the sign, it was not on the MLS yet) and found out that it would be listed soon and would have to be on the MLS for two days. This was a bank requirement. But there is a way they can list them on the MLS and lose most of that first day - maybe by entering it at the final hour. In the end, we decided against the house (foundation issues) and now we are several house offers down the road, still trying.
Redfin Partner Agent
mikebolen
Posts: 52
Registered: ‎08-22-2009
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Re: How to buy a foreclosure that isn't in the MLS yet?

RMS is correct here. Most anyone would want to buy and avoid the bidding war but unfortunately buying even at a foreclosure auction doesn't guarantee to avoid a bidding war. Most foreclosure auctions have several very experienced qualified bidders for most any home with equity being auctioned.

 

Assuming the 1st or 2nd mortgage is foreclosing which is the case in almost every foreclosure auction ALL liens are wiped out their are no liens that remain attached after foreclosure. And yes you do have to remove occupants if any, after foreclosure.

 

Hope this helps

Mike Bolen I Redfin Partner Agent
Serving Napa, Sonoma & Solano County
Silver Contributor
RMS
Posts: 458
Registered: ‎06-07-2009
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Re: How to buy a foreclosure that isn't in the MLS yet?

Tax liens not removed
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mrs_p
Posts: 1
Registered: ‎04-26-2009
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Re: How to buy a foreclosure that isn't in the MLS yet?

So would you say that it's not worth it to pay for a foreclosure listing service?  For the average homebuyer, is there an advantage to using one of these services?
Redfin Partner Agent
mikebolen
Posts: 52
Registered: ‎08-22-2009
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Re: How to buy a foreclosure that isn't in the MLS yet?

Actually they are. Property tax liens are always included in the auction opening bid the title company pays the back taxes upon conveying the title with the money received via the foreclosure auction. IRS tax liens are removed but granted a 120 day right of redemption on the property which they almost never exercise. 
Mike Bolen I Redfin Partner Agent
Serving Napa, Sonoma & Solano County
Silver Contributor
RMS
Posts: 458
Registered: ‎06-07-2009
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Re: How to buy a foreclosure that isn't in the MLS yet?

[ Edited ]

I saw a house at auction where the second was foreclosing, nobody bid on it.

 

Wells 1st 450k

Wells 2nd 50K

Sold to bank 50K

 

Now it is listed as a REO, how can a second foreclose and wouldn't they have to  go back and foreclose again with the 1st since the bank does not own the house, only the second?

The second recorded after the 1st, same day though.

Message Edited by RMS on 08-22-2009 11:53 AM
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mynamesbroke
Posts: 7
Registered: ‎06-10-2009
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Re: How to buy a foreclosure that isn't in the MLS yet?

We had a neighbor who defaulted and someone found out they were in pre-foreclosure (either at the County Recorder which often publishes this information online & free or at a paid foreclosure site) and offered them enough money to pay off the mortgage. It was well below market, but they took it. The buyer then flipped their house and made off with 100K in profit.

 

Other than the pre-foreclosure notices, I don't know of any benefit. (But I am not an investor - just a regular person trying to find a home).

 

Auction notices go into the local newspapers, don't they?

 

ps. If you signed on to Realtytrac, you should search the name here in Redfin. Many people had trouble with unauthorized charges going on to their credit cards after the "free trial" expired. The charges were listed under a name of one of their 'affiliates'. I just cancelled that card number in order to avoid the problem.

 

 

Redfin Partner Agent
mikebolen
Posts: 52
Registered: ‎08-22-2009
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Re: How to buy a foreclosure that isn't in the MLS yet?

Mrs_P

"So would you say that it's not worth it to pay for a foreclosure listing service?  For the average homebuyer, is there an advantage to using one of these services? "

 

Buying homes on the courthouse steps at a foreclosure auction is for experienced investors who do this as a job. Not every deal they purchase makes money some homes have latent defects that are not discovered until after foreclosure others have tenants who declare bankrupcy and stay in the home month after month for these reasons foreclosure investors buy many homes assuming some they will make money, some break even and some they lose money just like any other business. For the average homebuyer find a good experienced buyers agent and have them guide you through the process.

Mike Bolen I Redfin Partner Agent
Serving Napa, Sonoma & Solano County