August 25th, 2020
Palos Verdes foreclosures have 3 stages:
- Preforeclosures: homes which have had notices of default recorded
- Scheduled for Auction: homes which have had notices of trustee sale recorded
- Bank owned homes: homes which have reverted back to bank ownership after no one purchased at auction
Getting a Bargain on Distressed Property
Let me get right to the point wherein I stated there is only one of these categories in which profit potential is maximized. But first, why are the other two not good options?
Any of the homeowners in the Palos Verdes foreclosures process in this case is either doing a strategic foreclosure to leverage their lender into a loan modification and thus has no intent to sell the house whatsoever (it‘s estimated that nearly a third of preforeclosures are strategic) OR the homeowner is simply not in reality mode about their financial distress and is not ready to sell. I‘ve made hundreds of offers on these preforeclosures and not once has any of these offers been accepted. The owners of these Palos Verdes foreclosures are simply not ready to deal. If you want, you can pay me a retainer fee of $1,000 and $750.00 per offer per house you want to make an offer on that is not on MLS and is a preforeclosure.
The Bank Owned Homes
Back in the early 90’s when we had our downturn in the market then, we would track the Palos Verdes foreclosures, follow the auctions and then when no one bought at the auction (by the way, if you don’t know the reasons why it’s financially dangerous to buy at the auction, then send me an email to explain – you need to understand this! It’s important!) then we would approach the asset manager, sometimes the very next day, present our discounted offer and get a great deal. This is NOT happening anymore! The banks are under such scrutiny from the investor that holds the note and/or the Feds that all the major lenders these days are following the same policy. They are compelled to not consider any offers until the property has been on the local Multiple Listing Service for at least 5 days. This way, there can be some assurance that the property is being adequately marketed so all buyers can compete for the home and therefore it can be sold for its highest price. Does this sound like getting a bargain deal to you? I didn’t think so.
So, in the Palos Verdes foreclosures categories, we‘ve ruled out the Preforeclosures and we‘ve ruled out the Bank Owned homes; that leaves us with one option…
The homes scheduled for auction
In California, once a Notice of Trustee Sale has been recorded, the bank has to wait 21 days before holding the Auction. Now, that homeowner is forced to deal with reality. Now, we can approach that homeowner and help them get what they so desperately need. Is it money? If you said yes, you’re wrong. What else could it be? For this category of Palos Verdes Foreclosures, in almost every case, this homeowner of a home, let’s say here in Palos Verdes, has a home they bought in ’05 for $1,700,000. They have a loan of $1,360,000 on it, and the house is now worth maybe $1,200,000 to $1,275,000. They are upside down in the house. So whether they sell it for fair retail market value or less, what do they get? That’s right, nothing. So it’s not money that’s their goal. Remember, they are looking at an auction in as little as a few days from now and then the potential of a Sheriff’s eviction. You’ve probably gotten it by now; what they want is T I M E! And that’s where we can help. With a carefully and fully documented and prepared Short Sale package, we can stop the auction immediately, the lender is motivated to consider an offer at far less than market value so as to avoid the very, very expensive costs of foreclosure and resale and the homeowner can use the Short Sale process to a)have much more time in the home and b)more quickly recover their good credit. And best of all, you get a great bargain on a home!
Don’t get me wrong, it’s easier said than done. It’s a lot of hard work, it takes a lot of patience, but if you will let me help you, I can walk you through the process, negotiate with the homeowner, negotiate the short sale for you and do all this without it costing you a penny. AND, if you know someone who is in distress, I can help them capture the very real benefits of doing a short sale. It’s strange, I know, but this is truly a win-win both for the homeowner in distress and you the investor or buyer.
It’s time now for you to call and/or email me to get the process started. We need to meet, so that I can understand more fully your goals, what you want and if we can work together. I take on limited clients for this strategy as it does require patience on your part. Let’s talk about it. Call or email me today.
Oh, you’re probably wondering where are these auction properties? You will come to find that my customer service philosophy is based on the notion that I first must provide you service and value before you can commit to the ideal of choosing me to represent you. What you need to do next is that should any of the homes profiled look interesting to you, then CALL or EMAIL me right away so we can get moving on implementing the strategy. Time is short!
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