Locate BankAuctions and Listings
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BankAuctions and bank properties listed for sale can be found for free. Bank auctions are commonly called Lender Auctions or REO auctions and the term used to describe bank owned property is "REO" which stands for real estate owned.
If you intend to purchase property at BankAuctions there are some key questions you should ask. These properties have become bank owned property by foreclosing on the prior porperty owner or through owners signing the property over to the bank to avoid foreclosure. REO Auction Questions You Need To Ask
Can I select my own title company to handle the closing? This is a valuable piece of information to know, you don't want to be hammered by junk fees charged for closing the property. Many auction companies and banks will have a preferred title company/attorney which may charge them a reduced rate for closing the property. But, the reduction for them may equate to more fees for you. If this is the case, make sure you get a list of the estimated closing costs prior to bidding or ask what their policy is on you hiring your own title agent for your side of the closing. This may add cost but I would rather know the cost than to guess at it after an auction. I have made this mistake, I purchased a property for $60,000 and the attorney closing the property charged $6,000. The cost to close through my normal title agent would have been around $1,400. When purchasing directly from the bank, without the auction, there is typically no problem with who you select to conduct the closing. BankAuctions, Lender Auctions, REO Auctions by National Auction Company REDC conducting BankAuctions for over 23,000 REO Lender properties in 2009 and has been in business since 1990. Many of the auctioneering companies which handle Bankruptcy Trustee Auctions also conduct BankAuctions for lender REO properties such as soldfor.com. For locating Bankruptcy Trustee Auctions see my GovAuctions, page link is at bottom of this page. Here are some of the larger Banks and Loan Servicing Providers which have properties for sale and online lists. Being First and Getting the Property You will find foreclosure auctions advertised in a newspaper of general circulation in your county or listed at the county courthouse, depending upon your county. These are not BankAuctions, these are foreclosure auctions brought forward by the bank due to default of a mortgage. These properties are not owned by the bank and will not be unless the property is auctioned and it receives no bid higher than what is owed. The attorney representing the bank "Plaintiff" will be present at the auction to secure the interest of the bank. If no higher bid is received the property will be owned by the Plaintiff "bank" upon conveyance of a deed or certificate of title from the county to the Plaintiff. While foreclosure auctions, in Florida, are conducted by the Clerk of Circuit Courts, you may find that your areas foreclosure auctions are conducted by the Sheriff's office. No matter where you are located, there will be a case number assigned to the foreclosure action (case number found on advertisement) and a case file will be available for viewing by the general public. The file may be found at the Clerk's office or in in your area it may be handled by another office. The first place to look is at general recording and you will need to ask where to view the mortgage foreclosure files and you will need the case number for them to retreive the correct file. In that file on many documents, you will find a contact number for "Attorney for Plaintiff", who is representing the bank or party bringing the foreclosure action. The attorney will have the contact information for the bank representitive which controls the property. It may take a little patience and a few calls but it is worth it. Only call after the auction has occured and the property received no bid higher than that of the Plaintiffs attorney. Make sure you have the case number and names of Defendant and Plaintiff when calling the attorney's office. The objective is to obtain the property for less than what is owed, prior to it being listed with a realtor. We have many times been able to contact the bank representative within 3 days of the foreclosure auction and are frequently the first to make contact. While some banks will require the property to be sold through a realtor, many will not. Some bank representatives will tell you to call back in x days so the property can be processed. Some banks will want you to fax an offer to them. Example: HSBC foreclosured on a property I wanted but the opening bid at the auction was more than I wanted to spend. There were no bidders at the auction. I retreived the phone number for the attorney from the files, called and was given the contact number for the bank representative. I was shocked when, upon first contact, the bank representative said "That is in the ballpark of what we are thinking" when I made a verbal offer for 60% of the auction price. The auction price was about 10% less than market value. We closed in 10 days without a realtor. A few weeks later I was working at the property and a realtor stopped and asked how I got the property so quick. She had attempted to sell the property for the previous owners who defaulted. She also contacted the bank after the auction and was informed that the property was under contract. All I could offer was a smile. Sometimes the best deals are found by obtaining the property before the BankAuctions the property or lists the property for sale.
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