Expert: Dick Dennis - 8/22/2007

Question
QUESTION: I went to an auction today at the Commissioner's Office. Are the properties that were in the auction in a "pre-foreclosure" state before the auction?
thanks,
Scott

ANSWER: I have no idea what commissioner's office you mean, Scott. Were they properties in foreclosure because banks are foreclosing, or are they properties in foreclosure en masse? Were the properties in the tax office? You're going to have to be more clean, Scott before I can answer. However, assuming your state has a particular county office taking care of the foreclosures, they are NOT pre-foreclosures. The auction told me that. I do wish you well.

Dick Dennis

---------- FOLLOW-UP ----------

QUESTION: Well then let me ask you this. At the auction the 62 of the 74 properties auctioned off were bought by the plantiff. I assume that once the bank or mortgage company buys these properties they are now REO? What is the best way to find these REO properties that were bought today and find out what the banks or mortgage companies are asking for them?
ANSWER: That means the other 12 were bought by investors or people who were looking for homes. Now you have 62 properties on which to bid ALL BY YOURSELF. Do your homework. Check these properties out. Know the market for them (even though it is sinking in the western sunset). When you pick out one or two you would like to have, based on the information you garnered, make your offer to the bank who now has that property. Believe me, they do want to get rid of it. So don't be bashful to make an offer. But you should have good credit so that they know they are not just batting the breeze with someone who won't wind up affording that property. If you do have good credit, the odds are on your side. They will be tickled pink to sell it to you even though it'll be your price. I wish you well.

Dick Dennis

---------- FOLLOW-UP ----------

QUESTION: How would I go about following up with the property? Should I call the purchaser/bank directly?
What department should I ask for?
If they were sold at auction today how long before I can purchase the property?
Is it unethical to ask what they need from the property and if not then will they tell me?
thanks

Answer
I assumed if you knew there were a list with 74 properties on it and 62 went back to the banks, then I assumed you had the addresses of the properties and which banks now owned them. If not, get a hold of a list and their addresses by starting with that commissioners office and keep asking different sources until you get what you want. You're not going to inspect and look at all 62 properties in one day. It'll take a few days. Maybe a month or so, depending how gung ho you are. Ask the Bank's foreclosure department about the properties directly. They will tell you who you should go to for information. They may tell you to go to the Realtors they use to sell the properties for them. Don't bother to ask what the bank wants out of the sale. They'll never tell you the truth anyway. Just make your offer based on what you can afford and your credit dictates.

Dick