“Where is the best place to find foreclosures?” This was a question that was asked in a forum that we came across. If one person had this question, it’s a safe bet that others have it as well.
fortunate in the respect that I spent 25 years in banking. Bankers move around quite a bit, so many of my old co-workers now are the movers and shakers at banks all over this great land.
In larger national banks, the folks in your local branch probably won’t know who to call within the organization to get a list of what assets they have available for sale. Instead, search the internet (including social media sites) for bank officers in the “Special Assets” department. They will be the ones handling the bank’s assets that they wish to sell. For smaller community banks, you will want to reach out directly to the Chief Credit Officer of the institutions. They will have a handle on what assets are on their “non-accrual” list (assets that aren’t paying and the bank is no longer accruing the interest on their balance sheets).
Foreclosure auctions are conducted very differently from jurisdiction to jurisdiction. In a lien theory state (judicial foreclosure state), you can usually find the auction procedures for each jurisdiction on the county’s county clerk’s page. For deed theory states, creditor rights attorneys (attorneys that represent banks in foreclosures) conduct auctions on behalf of their client institutions. With inventory as low as it is right now, the competition for foreclosures is tense. You might find yourself chasing your tail by doing your due diligence on many, many foreclosures only to be outbid by someone else.
Buying the distressed mortgage notes as opposed to the properties is also a great option. You’ll need to take the foreclosure of the deed in lieu of foreclosure across the finish line, but you’ll have more control over the disposition of the property. You do have to understand the process and, if you don’t have experience in working through the collection and foreclosure process, you’ll need someone to show you the ropes.
We also work with different funds that purchase loans for their portfolios. They usually have assets that will no longer perform and they need to move them off their balance sheets. These funds are usually great places to find assets, but they typically don’t like to sell single assets. They typically like to sell in bulk and they like to have go-to buyers on speed dial. If you can become one of those buyers and you are willing to be “less than picky” with what you buy, you can get a pretty steady stream of assets to buy.
Finding assets to purchase in this low-inventory environment is easier said than done. With a little work and the right people guiding you, you should be able to build a steady stream of new deals to purchase.