There is always an advantage to obtaining a property prior to the bank foreclosing on it. When it makes the sheriffs sale you will be competing with others. Usally you dont get to see the property on the inside. If you contact the owner prior to the sale at least you can look on the inside, I have looked at properties where there was raw sewage & severe water damage in the basement, if I would have just bought this property at the sale I would not have known this information. As far as REO’s usally a real estate agents are representing the bank, you are competing with other bids, the bank is trying to get the most for their money, sometimes the house is not a deal because it too much work for the price. What I found out is that most people are filing bankruptcy and saving their houses so it doesnt foreclose. As far as calling people I send out letters 8 out 10 times they dont respond but that’s ok. Letters are more open ended
Bankruptcy is a savior now a days, well I look at as a
bandage for a 50 caliber wound!
A few days ago, I got a list from my local title company of bank owned homes (I’m trying to get into flipping properties, and am looking for some deals). After reading the list, and then talking with a very helpful title company rep, he recommended that I look at a list of recent Notices of Default (the notice that a lender will give a property owner prior to foreclosing on the property for non-payment). This looks like a far better list, as it gives me potential access to those people who are probably feeling kind of desperate right now, and might be ready to make a deal to help save their credit. Has anyone used either list to find properties? Can you tell us about your experiences?
One final question…what is a good approach to use when calling individuals on a list like this? I imagine saying something like “Hi, I say your life is falling apart and I was wondering if I could come in and buy your home for next to nothing?” won’t work too well. Any good approach ideas?