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Buying a bank-owned home before it's listed

EastSiderEastSider
edited September 2009 in Seattle Real Estate
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?

Comments

  • jillaynejillayne
    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.
  • MarkorMarkor
    Good info jillayne.
    jillayne wrote:
    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.
    Do you think this is true even if you intend to pay cash?
  • jillaynejillayne
    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 sira 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.
  • MarkorMarkor
    So if someone has cash but no job they can't buy bank-owned?
  • ira sira 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.
  • EastSiderEastSider
    jillayne wrote:
    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.

    Thanks JillAyne for the detailed response -- it's much appreciated.
    I did a search online & found the following info...
    Trustee: REGIONAL TRUSTEE SERVICES
    Purchasing Bank: Deutsche Bank National Trust Company

    Is there an easy way to find the info of "Deutsche Bank National Trust Company's" REO department? I will also try calling REGIONAL TRUSTEE SERVICES
  • ira sira s
    Call Deutsche Bank @ 714-247-6000 and ask for the REO Hotline.
  • cheapseatscheapseats
    If you talk to DB be sure to bring up their projections that 50 percent of loans will be underwater.
  • tacomatrolltacomatroll
    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.
  • EastSiderEastSider
    EastSider wrote:
    Thanks JillAyne for the detailed response -- it's much appreciated.
    I did a search online & found the following info...
    Trustee: REGIONAL TRUSTEE SERVICES
    Purchasing Bank: Deutsche Bank National Trust Company

    Is there an easy way to find the info of "Deutsche Bank National Trust Company's" REO department? I will also try calling REGIONAL TRUSTEE SERVICES

    I called REGIONAL TRUSTEE SERVICES this morning, and the rep over there said that the home was sold to IndyMac. But the REGIONAL TRUSTEE SERVICES website (and the parcel viewer) states that the home was sold to Deutsche Bank.

    Are IndyMac & Deutsche Bank part of the same entity now? Which bank should I contact & which bank is easier to deal with (for REO)?
  • jillaynejillayne
    Go with what the public records deed says, regarding who is now in title.
  • jillaynejillayne
    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.
  • davidloshdavidlosh
    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.
  • EastSiderEastSider
    davidlosh wrote:
    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.

    Agreed! But, I'm having trouble finding the "right" department/contact at the bank:(
  • jillaynejillayne
    Eastsider,

    This person wrote a whole series of blog posts about contacting Deutsche Bank's REO department.

    http://realestatecircleville.wordpress. ... epartment/
  • davidloshdavidlosh
    The bank wants to talk to you, pick the bank. Go to the office. It's easy to get you off the phone it's hard to get you out of the office. plan on spending the day.

    Another resource that Jillyanne mentioned is the Trustee. Go to the office, go to an auction, talk to the guys with the paper work on the phone.

    Really talk with an agent who deals in bank owned properties. Call around for a list of bank owned properties. Eventually you'll get around to the hand full of people who deal with banks in your area.

    You're probably going to need the agent anyway. There are bankruptcy attorneys who also deal with banks.

    Start your search on bank owned properties then keep at it. Avoid the foreclosure classes, go to the auctions, keep your mouth shut, listen the first few times, then when people get used to seeing you there, or some one asks you a question, you say you're just trying to figure it out.

    If you are looking for this to be easy, it's not. Every body is playing it close to the vest. If it's easy it's not a deal. Eventually people will just give you information. You really need to pay some dues first and time is cheaper than money. It is a way of life for a lot of these people and you will see the same group of people repeatedly.
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