Join me on the next Foreclosure Fridays Live (June 29th) to discuss my trip, Foreclosure Book, etc! Start at 5PM PST (10AM Saturday in Australia).

Dallas House Now an REO

Angleridge Dallas TX

I spoke with the hard money lender about how the Trustee’s Sale (foreclosure auction) went today for the Dallas house. He said the lawyer hasn’t called him yet, which means it probably didn’t sell. So we’re assuming the Dallas house is now an REO (Real Estate Owned).

Here is a good definition of a REO and why investors like to buy REOs (from RateEmpire.com):

The term REO is used to refer to a piece of real estate (property) owned by a bank, and capitalists usually get excited at the thought of investing in an REO property since they consider it to be easy money making options. An REO is different from a foreclosure property in the sense that the bank has already tried to sell it at a foreclosure auction and has not been successful in getting bids, and following this, the bank then became the owner of the property because the property was not bid on. As expected, the bank is not too interested in keeping the REO for any longer, and this makes it a good opportunity to cash in on for an investor. However, it must be remembered that every REO need not necessarily be a good deal, but in general, it has been seen that when it comes to an REO there usually is a lot of money waiting to be made.

Are you sure our credit will be clean??

The lender assured me again that they are NOT going to report anything on our credit. I ask him further:

Casey: What about the Notice of Trustee’s Sale and the Trustee’s Sale itself? Will that somehow show up on our credit?”

Lender: No, it will just be in the public records. It will not be on your credit.

Casey: I sent you the Deed-in-Lieu-of-Foreclosure. Can you explain again why you foreclosed on it anyway?

Lender: Just because you sent it doesn’t mean I have to accept it. Besides, I got it yesterday and the sale is today. I had no time to run a title check and record it.

Casey: Yeah, I know. It’s my fault. I should have sent it to you last week when we first talked about it. I was hoping the New York City buyer was going to close, and then I was tied up by some stuff…

Lender: Yes you should have sent it [Deed in Lieu] a month ago.

What about property taxes??

I also talked to the lender about taxes and he confirmed that there was no escrow account. So I am responsible for the pro-rated amount of taxes for the duration of my ownership. I bought the house in May.

So I figure it will be about $3,600. Ouch!

The lender said that if I can find him a buyer real quick at a reasonable price, he may be willing to pay off my taxes from the proceeds.

Anybody want to buy the Dallas house?

Please…?

Leave a Reply

Your email address will not be published.