Submitting An Offer Just After Auction
I am just getting started in investing and I live in a deed of trust state. I have gotten a few pre-approvals and am eligible for purchase @ 70% ARV. I am seeing properties being purchased very shortly after auction. The primary realtors handling foreclosures are telling me that it takes weeks or even months before they can get the amount for the listing. I know that the grantee will get the foreclosure info to the RE agent and waits for their numbers to post as the sale price. However, the "good" prospects are gone and the sold price is often considerably lower than the listed price sometimes within days of the auction. I found at least one agent who claims she will submit all offers but if she is not the listing agent, will she have access to the information in a reasonable period of time? Am I missing something crucial? ...And, can I get an offer to the lender as early as the day after auction?
I am also getting started and have not yet purchased my first foreclosure, but have done a lot of research. The keys that I have found are to develop a relationship with lenders in the area and ask them to send you their foreclosure lists. In exchange you will probably have to originate your loan through them, but at least it will be a good relationship. The best source of foreclosures are the bank or the law firm in your area that handles most foreclosure proceedings. A second tip/question would be are you referring to the time right after the auction as being after the bank has purchased the home from the auction or are you talking after the redemption period? With most foreclosures, there is a redemption period of anywhere from 30 to 60 days for the owner to "redeem" the loan. This means paying it in full, plus interest and penalties. If they are able to redeem, they keep the property. If not, the bank takes over. So, this is where your relationship with the bank can again come in handy...you can get an in on when certain properties will be available for purchase from the bank. You can then do your due diligence prior to expiration of the redemption period and have an offer ready to go the first day it is available for sale.