Can I buy a home directly from lienholder or their assigned trustee ?


#1

Is it possible to buy a home directly from Chase or their assigned trustee(Cali Reconveyance) before actual auction? I was in contract with a seller for a 2 unit building and he received a foreclosure notice from Chase. The seller forwarded my app + loan packet to Chase and Chase agreed to accept us as a buyer and extend foreclosure month by month. One of the tenants in the 2 units complained to Rent Board (SF) that his rent was raised not according to set annual rate increase limits(rent board). After multiple hearings, and another couple of months of waiting, it finally got settled. By now, we’ve been in talks for a total of about a YEAR! After all this settled, my agent booked a appraiser as needed to complete my Loan, the seller agent is unable to contact the seller to let him know of the pending visits. seller does not pick up for a week, then sends written notice that they will ?no longer be selling and rather just get foreclosed on. From what I’ve gathered, they owed Chase about 510K, our offer was 485K. Looking throguh PropertyRadar now, the loan amount reported on the California Reconveyance side now is only 400k. Is there anyway to bypass the seller and purchase directly from either Chase (since they’ve already sorta seen our file?) or California Reconveyance (for the intial amount of 485K, they’ll be gaining, no?)?


#2

? In theory Chase could sell you the loan. ?In practice, it will NEVER happen. ?

? It appears you want them to sell you the property IF/when they take it back. ?In that case, you would have to wait until Chase decides to put the property on the market and make an offer. ? From your post, it appears they have dropped the opening bid to quite a bit less than you are willing to pay. ?If that price is low enough, it could encourage a professional bidder to bid at the fcl. sale.


#3

Adding to Miket’s points … you might want to log-in to Property Radar and double check (click on)?at the Property Details (for that specific property) and scroll down to the Foreclosure Details area. You should see the published bid?-- that’s the amount owed on the loan going to trustee sale at the time the notice of trustee sale was filed. That amount likely has grown since the date it was ‘published’ (as defaulting borrowers commonly continue to_ fail to_ make payments). The lender (Chase in your case) can put that loan to sale at full debt owed … likely a bit more than the published bid. Or Chase could ‘discount’ if they want to entice 3rd party buyer interest at the trustee sale. If/when the lender opts to ‘drop (discount) the bid’ and post it for public view (sometimes at the proverbial ‘last second’),?you’ll see that via the opening bid… which you can also find in Property Radar.


#4

Adding also to Miket’s point about the long-shot chance of buying the loan directly before foreclosure … I concur … It is not an easy ‘mission to accomplish’ and even more daunting when dealing with a primary lender like Chase. There is ‘slim chance’ that you’d be ‘allowed’ to talk to anyone with the authority to sell you that loan. That’s a conversation/decision only provided/made for another large institution who buys in bulk ($ many millions). If you were talking to a small private party lender, then your odds would improve greatly.?

All that said … once you buy that loan (hopefully at a discount) … in order to “own the property” (< your objective), you would still need to foreclose on the delinquent (in default) borrower. So you’d likely need to contract w a trustee (making sure all proper foreclosure protocol are followed), post a bid … likely @ full debt if you want to own it … and take it to trustee sale. If no 3rd party bids … it goes ‘back to beneficiary’ (you).

If you wait for Chase to foreclose … it will most likely go to their REO group and perhaps eventually to MLS for retail sale