Buying a bank-owned home before it's listed

[EastSider]

A home that I'm interested in recently got foreclosed & went into auction with no bidders. Now, the bank owns the home & hasn't yet listed it. Would the bank entertain offers before it's listed? If yes, how do I go about doing it? Are there any "specialist" agents to work as a buyer's agent?

[jillayne]

Hi EastSider,

Yes! Contact the bank's REO department.

Here's a possible method for getting a hold of the right person. Check the public records and find the document called Notice of Trustee Sale. Get the name of the company acting as Trustee. It will probably be one of the local companies like Northwest Trustee Services or Regional Trustee Services. Call the Trustee and ask the same question you just asked us in the forum. It is possible that the Trustee can give you the name and phone number of the department or person in charge.

If you end up buying direct, it's also customary for that bank to insist that you get pre-approved by a retail loan originator at their retail mortgage lending division. This is normal. You don't HAVE to use their company but they like to try and recapture the loan and earn some fee income off you to offset their losses.

[Markor]

[jillayne]

Yes.
They will try to recapture some fee income any way they can. Besides, you might change your mind and decide to go with a mortgage! Remember, you don't have to use their retail mortgage company for the mortgage. Treat it like a formality. A hoop.

[ira s]

It's also true of most bank owned property that is listed. They require you to get preapproved with the bank that owns the home.

[Markor]

So if someone has cash but no job they can't buy bank-owned?

[ira s]

Lots of people buy banked owned with cash. When you're qualifying for a loan, and they see that you have no job but have several million dollars in cash, they will approve you for a loan, provided you don't have a history of walking away from loans. They'll try to convince you that you'll be better off borrowing the money, but they'll qualify you. They like cash.

[EastSider]

[ira s]

Call Deutsche Bank @ 714-247-6000 and ask for the REO Hotline.

[cheapseats]

If you talk to DB be sure to bring up their projections that 50 percent of loans will be underwater.

[tacomatroll]

Anyone know the REO contact for BECU (Boeing Employees Credit Union)? I have tried searching their website and 1 800 customer service is no help.

[EastSider]

[jillayne]

Go with what the public records deed says, regarding who is now in title.

[jillayne]

Regarding not having a job, lots of people without a job qualify for and receive a mortgage. Examples include people who live off of trust fund income, rental income, investment income, or even income from public assistance, long term disability, etc. As long as a homeowner has the ability to repay, the loan is granted.

[davidlosh]

This is really a good thread. Banks can do anything they want that makes sense to the investors.

It all comes down to the quality of the paper in the file. How do you look on paper? How's your balance sheet and track record? How many problems can you solve for the bank? If it's just one make it all look good. If you take 125 properties at a time there may be some negotiation. Banks like clearing inventory.

My point would be that you can do very well if you get in to the right department of bank owned properties.