Pre-foreclosure Deals In CA. Please Help

I currently have 2 properties that are 3 months behind. I know there is a thing called a short sale but I am not a licensed real estate agent. I am a wholesaler. 1 property in LA is worth 480k and they owe 415k. If I have them sign a paper giving me the authority to talk to their mortgage holders on thier behalf is there money to be made. I am new to this but I am starting to pick up alot of deals like this. Thank you so much for all your input and assistance.

Gobosh

Comments(13)

  • gobosh19th June, 2007

    sanjosee......Thank you for your input. Are you in investor? wholesaler? etc. I am looking to add to my book. Thanks again.

  • LoudInvestments12th July, 2007

    I would be very very very careful of this property, I work in Los Angeles and I know this market very well. You are purchasing at 86% LTV, this is still way too high. Not a good deal. Offer the bank $340,000 for it. thats a good deal for you and the bank. I would be surprised if that is the true value of the property. If you need help, let me know.
    Matt

  • LoudInvestments12th July, 2007

    We sell forclosed properties in Los Angeles. Right now, there are not that many good ones with good equity, but if you are patient I can sell you one with plenty of equity...are you looking to flip or rent???

  • gennots25th June, 2007

    I just put in an offer on a CW REO property. They listing agent said they want all offers open for 60 days, which I am not willing to do. I told them the offer is open for 1 week. Curious how your experience worked out. Any advice on dealing with CW?

  • B-lowS-high25th June, 2007

    Well my CW REO experience was not pleasant. I submitted my offer and then it expired w/o a response. So I resubmitted a new one extending the date, but lowering my offer price, because I had plenty of time and it was a good deal. I heard nothing from them until the day after it expired (and I gave them 2 weeks to respond), then they let my agent know that someone else got it. They are extremely slow in their REO dept. I have done some research and I think I understand why now. They have about 3-4 times as many REOs right now as they normally do, so they are definitely understaffed. And the more important point, is that they service loans for other mtg companies. So that means they get to collect fees for as long as they manage the property. That being the case, it benefits them to drag their feet so they can run up the bill on whatever bank owns the property. Let me know how yours goes.

  • bargain7625th June, 2007

    I usually make my offer direct to the listing Realtor with proof of funds and wording to the effect that this is a cash offer, subject only to the seller providing a marketable title, and closing can take place 5 days after acceptance.

    I have no problems getting a counter offer within a few days.
    [addsig]

  • HHLLC27th June, 2007

    We have also tried to deal with CW twice. Now I know why they have more defaulted loans than anyone. They make cleaning up their mess way to difficult. If you check out their list of REOs you will see it grows by leaps and bounds.
    They are a pain in the ars.

  • B-lowS-high27th June, 2007

    I agree. In my area they have the larges list of REOs, and the best supposed prices. Unfortunately they are too big of a pain. It makes me more reluctant to have an offer on one of their houses that might hang out there for weeks, when I can get a response from another bank within days.

  • NewKidInTown31st July, 2007

    Quote:
    On 2007-06-25 14:08, B-lowS-high wrote:
    And the more important point, is that they service loans for other mtg companies. So that means they get to collect fees for as long as they manage the property. That being the case, it benefits them to drag their feet so they can run up the bill on whatever bank owns the property. Let me know how yours goes.
    Please explain your comment. Since the property is an REO, then by default, the bank owns the property. Because the bank owns the property, there is no loan to service.

    Are you saying that Countrywide provides REO marketing services to other lenders?[ Edited by NewKidInTown3 on Date 07/01/2007 ]

  • cjmazur1st July, 2007

    someone still has to baby sit the loan while it is REO.

    On the commercial side I have seen "special services" hired to outsource the process.

    I bet the same is true on the residential side.

  • NewKidInTown32nd July, 2007

    I am still confused. The property is an REO, there is no loan because the loan was extinguished through foreclosure.

  • B-lowS-high2nd July, 2007

    CJ has it right. CW is no longer servicing the loan, but they are taking care of the sale of the house. They may bill the owning bank by the number of days CW "markets" the property. In my area you can see the CW REO list, but when you look up the owner on the assessors recs, it belongs to the Bank of New York. BNY may not have the resources or network to deal with a property in the Memphis, TN area, so they farm it out to CW, which may have also been their loan servicing company.

  • kevnhl2513th July, 2007

    [quote]
    On 2007-06-25 21:50, bargain76 wrote:
    I usually make my offer direct to the listing Realtor with proof of funds and wording to the effect that this is a cash offer, subject only to the seller providing a marketable title, and closing can take place 5 days after acceptance.

    I have no problems getting a counter offer within a few days

    i have located a potential deal in my home town thought i would offer 85% of asking price this is a Countrywide REO
    does anyone know if they are accepting offers in the range

    TIA
    Kevin

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