After a period of non-payment from a borrower a bank has the right to secure their asset IE lock it up with a combination box and change the locks. Many buyers these days are looking for bargains and vacant houses represent a potential value. The houses usually have notices from the bank so they try to contact the bank to purchase. The first problem with that is that the bank doesn’t get involved with real estate except for owning a ton of it (not by choice). Secondly getting through to a human is next to impossible. The next best bet is a real estate agent.  Real Estate agents have knowledge that can help facilitate the process due to their knowledge of the process.

So how do we get from point A – locked up house to point B – Sale of said house.

We start with the owner. The bank could have secured the asset legally prior to foreclosure. This means that while the bank has locked the house they are not the rightful owner of the property. So the first course of action is to find the home owner. Tax records will usually provide a name and address. Next step is to contact the home owner for permission to negotiate on their behalf with the bank. This is required to obtain the lock-box key and gain entry to the house.

The bank will require a listing agreement describing the relationship between the agent and the seller to work out the commission and so on. There are also addenda but we won’t touch on that in this post. They will also need an agreement of sale between the buyer and seller to get the ball rolling. Beyond all of this the sale will most likely be a short sale which will require third party bank approval to move forward.

Is it impossible? No. Is it ideal? Absolutely not, however it is possible.

If you find a Gettysburg or Hanover home that is locked up by the bank contact me and I can help you gain entry and purchase any of these homes.  It won’t be quick but we can get it done.

 

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