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Pre Foreclosure

Advice and question on a pre-foreclosure

by 4 Comments

About 3 weeks ago we placed on offer on a house that is currently in pre-foreclosure. The house was listed for way under value (Perhaps 100K undervalue). When we placed our offer, the seller’s agent told our agent that our offer was the second to come in and that he should hear back from the bank in the next day or two.

Fast forward 3 weeks.

There are now at least 5 offers on the house and the seller’s agent is not being very up front about what is actually causing the delay other than the bank has not responded to the offers yet and that the bank may not have a decision for another month.

Here are my questions:

1) What are some possible reasons for the delay? Does this simply mean that none of the offers are good enough?

2) The real estate market in the area is quite good. I’m curious why the seller would have a short sale and list the property below market value when it would probably sell for market value. Is it just a tactic to get more bids?

3) In this type of competitive (multiple-offer) environment, how important is it to have an offer that the bank can accept outright and not have to counter with? For instance waiving contingencies such as the inspection contingency and/or finance contingency? What about escalator clauses?

If you have ideas on any of the question, I would be happy to hear your opinions as I have very little experience w/ pre-foreclosures.

Thanks!

Approaching attorneys/brokers for short sale leads

by 1 Comment

Right now I have an agreement with 3 investors who have agree to share a portion of the profits for any prospects I send their way if they close.

For example, one gentleman has promised if he makes $20k, my share will be $2k. It sounds like a fair deal to me if I find him a good prospect who is willing to let him handle the issue with his lenders, stop the foreclosure process, and be willing to sign an offer to purchase contract and some other paperwork. He is looking for homeowners who want nothing out of the deal except to get the house off their hands. I am in the midst of looking for these prospects from different sources. I am getting ready to try make acquaintance with:

– mortgage brokers
– note brokers
– realtors
– bankruptcy attorneys
– foreclosure attorneys
– probate attorneys

– Realtors that work
* With County & Circuits courts as
mediators and appointed as Ad
Litem reps
* With REO & BPO for lender and
Asset Management companies.
* BPOs are ordered by many lenders
before the foreclosure is
public. You can promise them
the listing and they have an
inside on the value if they
share with you.
* With Loss Mitigation Consultant
(LMC) for lenders or those who
work directly for those in
default.

These are good source for pre-foreclosure leads before they become public knowledge in newspaper lis pendens or notice of default. But I have one more question. Before I approach these brokers and attorneys, what could I as a finder/birddog have to bring to the table to offer them in return for giving me good leads to give to my investor? Of course I will do as much legwork as I can before giving these leads to my investor.