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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Now let's see... Posted by Steve H. on September 02, 2001 at 7:38 PM In Reply to: Re: Now let's see... posted by Ward-CA- on September 02, 2001 at 4:53 PM : : The first is to Wells Fargo, the second is to Compass Bank and the third (or second) is to Banc One. We called Wells Fargo to inquire about the situation and were referred to the website of PASREO (Premiere Asset Services REO), which appears to have some affiliation with Wells Fargo - at least the e-mail address was ***@wellsfargo.com. I was thinking about a "day after" offer to Wells Fargo, but the direction we got seemed to suggest that the property would move directly to this REO service after auction. Am I wrong in thinking that this is so? How do you contact the bank the day after? How can you find out who was the high bidder? : : If you think it's likely the second (or third) will bid at auction, we're probably in trouble. We don't really have much cash to put towards the deal, and in this county, you have to pay the full amount in cash by 2PM the day of the sale. It's been suggested that we could arrange for financing with a typical lender prior to the sale (paying for our own appraisal and title work), get a letter of intent from them to loan us a certain amount, and then take that letter to a prearranged financial institution who would be willing to cut us a cashiers check that day for amount of the winning bid, assuming of course that we won the auction. Then, we'd arrange for the lender to pay off the bank in a week or so. I've been told "this is possible, but very complicated to pull of." : : The other possibility is to work with a service call ecountyforclosures.com. I assume you've heard of them. They will provide not only the bidding expertise, but the financing (97-100%) as well. Effectively, they buy the house at auction at no more than your max bid, and you buy from them. However, they charge 10% (of your max bid) commission and a non-refundable 1% "walk-away" option fee. We've seen the house - it's in great shape, is unoccupied and in a gated community, so we don't need the option. Anyway, the main problem with them is that the 10% commission greatly reduces the amount of money we can afford to bid on the house. Plus, if I go this route, I'll be owning this new house and my old one at the same time (of course, we'd list right away), which means I can only qualify for enough of a loan to bid about $500k. If you're correct about the third (or second) bidding, then we're probably out of the game before it starts. : : The real frustrating thing is that the owner never even considered a short sale, which might well have worked. They had the house listed at $660K, which was supposedly what they needed to get out even. We bid $600K (contingent). We'd have picked up the back taxes, and they could have cleared the first, second and over half of the third. Hell, the realtor was even willing to cut their commission in half. I recently tried to call the trustee to see if she will allow us to try to work through this with the owner and lenders, but she hasn't called back and I doubt she will. : : So, if you think that the bid on this house at auction will exceed, say, $520K, we'll probably not bother and try to do something after the sale. It's a great house that would appraise close to $700K. The only reason it hasn't sold is the market and the fact it has a rather unique custom floorplan that turns a lot of people off. : : Thanks again for your sage advice. : : Steve : =•=•=•=•=•=•=•=•=•=•=•= : Steve, I still stand by my prediction that the institutional 2nd will initiate their foreclosure before any other lender. : If you are of mind not to bid at the sale, and instead want to approach the lender after their sale (assuming that no one bid at their sale), I would suggest that you approach that lender before their sale. Look at their recorded Notice of Default and/or their recorded Notice of Trustee’s Sale and try to find a reference to the beneficiary. Also get a copy of the recorded trust deed they’re foreclosing on for a loan # reference. : Then call the lender and locate the party within that institution who’ll be in charge of the property if it becomes their REO. Ask them to fax you the paperwork that they prefer to have any offers to them made on and where you should fax or mail it once you’ve filled it in. : Steve, by contacting them before their sale and predicting that they’re going to get it as an REO, you’re telegraphing your interest well in advance of anyone else. If they know of your interest they might very well not bother to list it with any agent or do any rehab or even bother to get involved in an eviction. In fact, I would make my offer contingent only on your approval of your house inspector’s inspection and getting a policy of title insurance from them. : If you’re sure you don’t want to bid for the property at their foreclosure sale then you’ll have to do an analysis and determine what you’re going to offer the lender once they have it as an REO. Obviously, by waiting until afterward you wouldn’t be offering as much as the lender wanted at their sale. Some of the justification for your lower offer is going to be detailed in the shortcomings listed in your house inspection report. The rest of the justification is you taking the property “as is” and with a holdover owner or tenant you will have to vacate. : Also keep in mind, that the trustee sale of a junior will not wipe any senior lien off the title of the property. Their foreclosure will wipe off only the liens junior to the foreclosing lien. : : Here’s hoping you get this place. Ward - I imagine you're getting sick of me, so I promise this will be the last question. The plot has thickened. We just found out today, through the realtor that listed the house, that Wells Fargo foreclosed on Aug. 14, three days before the bankruptcy was filed. Also, we are now pretty convinced that it's only Wells Fargo ($430,000) and Banc One ($143,000) that are lienholders. The property is up for sale Tuesday, so it's too late for us to bid. Any additional thoughts on what the respective lienholders will do? Thanks again for the help. Steve Follow Ups: Re: Fingers crossed... Ward-CA- 8:10 PM, 09/02/01 (1) Re: Fingers crossed... Steve H. 10:55 AM, 09/04/01 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : The first is to Wells Fargo, the second is to Compass Bank and the third (or second) is to Banc One. We called Wells Fargo to inquire about the situation and were referred to the website of PASREO (Premiere Asset Services REO), which appears to have some affiliation with Wells Fargo - at least the e-mail address was ***@wellsfargo.com. I was thinking about a "day after" offer to Wells Fargo, but the direction we got seemed to suggest that the property would move directly to this REO service after auction. Am I wrong in thinking that this is so? How do you contact the bank the day after? How can you find out who was the high bidder? : : : If you think it's likely the second (or third) will bid at auction, we're probably in trouble. We don't really have much cash to put towards the deal, and in this county, you have to pay the full amount in cash by 2PM the day of the sale. It's been suggested that we could arrange for financing with a typical lender prior to the sale (paying for our own appraisal and title work), get a letter of intent from them to loan us a certain amount, and then take that letter to a prearranged financial institution who would be willing to cut us a cashiers check that day for amount of the winning bid, assuming of course that we won the auction. Then, we'd arrange for the lender to pay off the bank in a week or so. I've been told "this is possible, but very complicated to pull of." : : : The other possibility is to work with a service call ecountyforclosures.com. I assume you've heard of them. They will provide not only the bidding expertise, but the financing (97-100%) as well. Effectively, they buy the house at auction at no more than your max bid, and you buy from them. However, they charge 10% (of your max bid) commission and a non-refundable 1% "walk-away" option fee. We've seen the house - it's in great shape, is unoccupied and in a gated community, so we don't need the option. Anyway, the main problem with them is that the 10% commission greatly reduces the amount of money we can afford to bid on the house. Plus, if I go this route, I'll be owning this new house and my old one at the same time (of course, we'd list right away), which means I can only qualify for enough of a loan to bid about $500k. If you're correct about the third (or second) bidding, then we're probably out of the game before it starts. : : : The real frustrating thing is that the owner never even considered a short sale, which might well have worked. They had the house listed at $660K, which was supposedly what they needed to get out even. We bid $600K (contingent). We'd have picked up the back taxes, and they could have cleared the first, second and over half of the third. Hell, the realtor was even willing to cut their commission in half. I recently tried to call the trustee to see if she will allow us to try to work through this with the owner and lenders, but she hasn't called back and I doubt she will. : : : So, if you think that the bid on this house at auction will exceed, say, $520K, we'll probably not bother and try to do something after the sale. It's a great house that would appraise close to $700K. The only reason it hasn't sold is the market and the fact it has a rather unique custom floorplan that turns a lot of people off. : : : Thanks again for your sage advice. : : : Steve : : =•=•=•=•=•=•=•=•=•=•=•= : : Steve, I still stand by my prediction that the institutional 2nd will initiate their foreclosure before any other lender. : : If you are of mind not to bid at the sale, and instead want to approach the lender after their sale (assuming that no one bid at their sale), I would suggest that you approach that lender before their sale. Look at their recorded Notice of Default and/or their recorded Notice of Trustee’s Sale and try to find a reference to the beneficiary. Also get a copy of the recorded trust deed they’re foreclosing on for a loan # reference. : : Then call the lender and locate the party within that institution who’ll be in charge of the property if it becomes their REO. Ask them to fax you the paperwork that they prefer to have any offers to them made on and where you should fax or mail it once you’ve filled it in. : : Steve, by contacting them before their sale and predicting that they’re going to get it as an REO, you’re telegraphing your interest well in advance of anyone else. If they know of your interest they might very well not bother to list it with any agent or do any rehab or even bother to get involved in an eviction. In fact, I would make my offer contingent only on your approval of your house inspector’s inspection and getting a policy of title insurance from them. : : If you’re sure you don’t want to bid for the property at their foreclosure sale then you’ll have to do an analysis and determine what you’re going to offer the lender once they have it as an REO. Obviously, by waiting until afterward you wouldn’t be offering as much as the lender wanted at their sale. Some of the justification for your lower offer is going to be detailed in the shortcomings listed in your house inspection report. The rest of the justification is you taking the property “as is” and with a holdover owner or tenant you will have to vacate. : : Also keep in mind, that the trustee sale of a junior will not wipe any senior lien off the title of the property. Their foreclosure will wipe off only the liens junior to the foreclosing lien. : : : : Here’s hoping you get this place. : Ward - : I imagine you're getting sick of me, so I promise this will be the last question. : The plot has thickened. We just found out today, through the realtor that listed the house, that Wells Fargo foreclosed on Aug. 14, three days before the bankruptcy was filed. Also, we are now pretty convinced that it's only Wells Fargo ($430,000) and Banc One ($143,000) that are lienholders. The property is up for sale Tuesday, so it's too late for us to bid. Any additional thoughts on what the respective lienholders will do? : Thanks again for the help. : Steve Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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