From: 
Newsgroups: misc.invest.real-estate alt.real-estate-agents alt.invest.real-estate
Subject: Re: try to find US foreclosure sites, and commercial listing sites
Date: Sun, 22 Jun 2003 22:31:06 GMT


----- Original Message ----- 
From: "Paul Vanasse" 
Newsgroups:
misc.invest.real-estate,alt.real-estate-agents,alt.invest.real-estate
Sent: Sunday, June 22, 2003 11:18 AM
Subject: Re: try to find US foreclosure sites, and commercial listing sites

>
> > Who are you responding to?  Your inability to think outside the box will
> > keep you from truly finding a bargain in the foreclosure market.
>
> OK Bubba, you're the bank. You have a mortgagor that is in financial
> trouble. What do you suggest that they do? Aside from getting a loan from
> Uncle Festus......
>
> All of the financial institutions that Ive been dealing with over the past
> 22 years suggest that their customers put the house on the market ASAP by
> calling someone who can provide the widest possible marketing exposure.
> Wider exposure = Increased activity = More competition for the property =
> More $$$ in the owners pocket (if there is any money left over). Even if
> there isn't any $$ left over and the bank can be satisfied, the mortgagors
> credit rating most likely wont be affected (as long as the mortgagor's
> situation wasn't a long term repetitive pattern). This is the trade off
> for dealing with the bank in advance.

And, lots of people don't take the banks recomendations.  I can't begin to
tell you how many people I encounter who have made absolutely no effort to
sell the property before the foreclosure sale.  I just ran into a woman who
had over $40K equity in her $125K home and did nothing.  When I asked her
what she had done to get the house sold, she told me that she didn't want to
move so she didn't try to sell.  I said, "You didn't do anything?"  She
said, "I prayed that God would somehow intervene."

>
> Most banks will work with a mortgagor for a period of time to get the job
> done as long as the mortgagor is actively complying. We/I negotiate with
> financial institutions every other week on behalf of a defaulting
> customer.  Most banks work with them and with us, as long as all of the
> parties concerned are willing to take the right steps.
>
> If you are looking for bargains in the foreclosure world, you're barking
> up the wrong tree. Banks can hold out for FMV as long as they want because
> under Federal Reg's, once a bank acquires the property under foreclosure,
> the bank can show the property as an asset for fiscal reporting reasons
> (no different from cash in the vault). The only time foreclosed properties
> can negatively affect a bank is when the percentage of properties held
> exceeds the percentage of allowable liquid current assets which this is
> extremely rare.

Sorry, you are wrong.  Your theory sounds good but in reality, Banks do not
hold out for FMV.  I find that they will only do that with an insured loan
as they are assured of getting the full amount of their judgment.  If it is
not an insured loan, they will generally drop out of the bidding somewhere
above 85% of the judgment amount.  After all, Even if they take the property
at 90%, they know that they will
immediately have to add a Realtor's commission, insurance, maintenance and
other carrying expenses that can easily add up to 100% of the judgment or
more.  They are way ahead to bail out early and that is what most do.

>
> As far as cutting a deal by taking advantage of some unknowing poor schlep
> who's about to lose his castle to the bank and has equity in the property,
> this is called Carpet Bagging and it's usually practiced by the scum of
> the earth.
>
>

When a property hits the courthouse steps, neither you or the owner has any
way of knowing if there will be any overbid money.  Most times the owner is
better off taking a sure thing that will put cash in their pocket and get
them a new start from some, as you call it, scum of the earth.  Us, so
called scum, provide a valuable service.  Oh, in the case of the lady with
the $40K equity, the house had a judgment that was much more than the
assessed value.  The Courthouse Vultures generally will pass on that type of
property anyway.  So in this case, it is quite likely that the bank would
have gotten it for a $100 dollar bid.  So, why isn't the bank the scum of
the earth?  Do you think that they would give her a dime?  Better think
again.  In this case, I gave her a much better deal and kept the bank from
becoming the scum of the earth.  For some reason you sound as though you are
green with envy.