How do they do it, buying REO before it hits the MLS

**Cdog** · 05-29-2010, 07:07 AM

Hello, first post but have been lurking for a while.
Long story short, my wife and I are trying to buy a place in SW FL to move to. There are 2 guys down there buying foreclosures before they come to the mls. Most recent, a Wells Fargo prop which I found before any listings, then shows up on the PASREO site (Premier Props-Wells REO site) with a listing agent assigned but price is TBA. Contact the realtor and she says it will be available in a few weeks. I just checked the tax record and find out it was foreclosed upon for 20K by the bank and sold to these 2 guys for 25K.
This is a waterfront prop that should be listed for at least 120K as per comps.
Is there anything illegal going on or do they have an inside track? Also, these guy have some houses on the market buying for just a couple thousand over foreclosed price and then sometimes listing the exact same day as settlement for almost double what they paid.
At this rate, we'll never get to move there. We're not trying to steal anything, just take advantage of the reduced prices.
Any clue?
Many thanks in advance!
Cdog

**Chrisopher Moltisanti** · 05-29-2010, 12:36 PM

No sir, nothing illegal going on. If a bank (which owns the REO of course), has serious cash buyers available (and a lot of banks do and there are a lot of seriously bank rolled single and other entities out there), then the bank isn't going to list them with a broker.

Don't worry, you'll find something and no, it's not going to be crap either. If you wish to retire down there, take your pick of properties available: The banks want your business!

Good luck.

CM

**minnesota-mls** · 05-29-2010, 05:47 PM

Here in Minnesota, nearly all of the bank owned properties do get listed on the MLS. We have a few agents on our team that list a large number of reos.

What you are descibing below is an interesting situation but certainly not the norm.

Be sure you have plugged in with a top buyer's agent to represent you on the transaction. Remember that the listing agent represent's the bank and bank's best interests. Not to mention most of these REO listers are so swamped they don't work with buyers.

Thanks again and good luck with your search! You will find a great property!

**Cdog** · 05-30-2010, 07:23 AM

Thank you both for your informative answers. What really bugs me is it was listed on the PASREO website (Wells Fargo) and even listed the broker it was going to.
Makes me rethink the highest and best offer is just smoke and mirrors. If these banks don't need the money, why should I stretch my financials to get something they care less about. To take someone's home for a 20K default and then sell for a 5K profit just sounds criminal.
Guess I'm a bleeding heart

Thx again!
C

**markbrian** · 05-30-2010, 08:04 AM

This sounds fishy and may be the very reason that some banks require the home is on the MLS for a certain time period BEFORE they will start accepting offers.

**dreamsocialmedia** · 05-31-2010, 08:39 PM

this is not good!Its so sad hearing those things!Bank should really be strict on this.

**Cdog** · 06-01-2010, 06:07 PM

Thanks for your input. I guess it's hard to fight the system. I know the 'upstanding' banks do require it to be on the mls for a certain amount of days. The prop I'm talking about is still on the PASREO site as 'new'. Hmmmmmm. We bank at wells fargo, maybe it's time for a change.
Thx all!!!!
C

**buy foreclosed homes** · 06-02-2010, 02:46 AM

There are people making a ton of money in this market and it's all about being in the right place at the right time. I think Florida does trustee sales... you might want to go down there and buy a home so it doesn't go back to the bank (beat them at their own game). There's a link in my signature line that will take you to a blog with some helpful info.

If the courthouse steps sale is not an option... you might try making friends with the realtors who are snatching the stuff up. If you have a realtor (and I recommend you do) have your realtor call them and see if they can work something out on the next one that comes up.

Good Luck!

**Greg** · 06-02-2010, 10:14 AM

The bank had the high bid at the court house steps. Typically, there is a waiting period where the winning bid can be upset with a higher bid.

These investors stepped in with an upset bid and bought the property from the sheriff. When it was on the website without a price it was because the bank did not have ownership of it yet.

The investors sell some real cheap because they bought a dog and they sell some at a big gain because they bought a cream puff. It is hit or miss, especially if it is occupied.

All you have to do is find another property like this, verify it's condition and market value, do a title search to make sure there are not any other liens on it and then show up at the sheriffs sale on the court house steps and make the winning bid.

Cautions

1. a lien can be placed on the property shortly before the sheriffs sale.
2. with no access to property you will not know the condition.
3. you will have to evict the renters/owners
4. you will be playing with the big boys so be careful

**JAMikel** · 11-29-2010, 10:13 AM

O.K. Here's the scoop. No there are not trustee sales in Florida, with the exception of Bankruptcy Trustee Sales. Mortgages in Florida are not executed under a Deed Of Trust which is the case in many states such as Missouri. No, there is not an upset bid period after a foreclosure sale in Florida though there is a 10 day review period for the bank to object to the sale and for judge review. Florida sheriffs offices do not conduct foreclosure, tax lien, tax deed, judicial lien auctions. As mandated by statute these are under the discretion of the County Clerk of Circuit Courts. The sheriffs offices do auction property which is confiscated.

Back To Original Question
Many realtors have exclusive listings with banks whereby the property is only listed in MLS after a period of time has lapsed. Many exceptional deals are sucked up before you can get to them. In contacting bank direct before listing, many banks have cash buyers in hand. I.E. Regions Bank had foreclosed on 45 lots in Central Florida. I contacted them within 3 days of them receiving certificate of title "conveyance granted in Florida Foreclosure" and was informed all of the lots were under contract by a single party. I kept note of a few of the property address and waited about 30 days. Checked the county property appraisers records and sure enough, all sold to a developer. Checked the official records and it seemed the developer had been buying up a lot of property. I have also found that some of the agents having these exclusive listings will not respond if you are represented by an agent outside of themselves or their office. Why share commissions on excellent deals when you can pass them off to your preferred clients. We found out about one agents exclusive listings by talking to the guy who was mowing grass at a REO house we were looking at. He informed us that there were a lot of homes he mowed for an agent in the area which were not on the MLS and gave us a few addresses and we gave him $50.00. We then looked up the title work on the official county records, as the property appraisers records did not yet reflect the new owners, and found out that many of the homes were owned by the same bank. So we then cross referenced addresses with

OK this getting way to long--I have all of this on my site for free---Sorry can't provide link haven't met the 15 submission requirement.....

If you are not an investor and looking to buy a single property for your use, figure out which realtor has the most listings in your area-who is the most active in the community and call them.