Do you think contacting the bank directly to chase defaulting loans might be a good strategy?
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Hi @davidvuong1, it’s been a while. I used to have a list of all the bank foreclosure sites. I stopped updating it because around 2014, there weren’t any being posted. For fun, I looked for Bank of America and they do keep a foreclosure site. In California, they have two that show up.
We did two shows I think you’ll want to listen to. The first is the podcast this week with Dave Savage. He breaks down the different kind of broker and lender models. I had never heard it broken down like that before. That’s this Thursday. Then, check out podcast 13 with Ellis San Jose and Martin Saenz.
Ellis specifically targets private lenders where Martin goes after the big “tapes” of mortgages. Sounds like you’re thinking about local banks?
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I’ll listen to those? With the eviction moratoriums, I guess that adds another layer to lenders not wanting to foreclosure, too. Do you think local banks might be better?
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Yes. When you start looking at larger banks, they may orginate loans but they rarely hold the paper. They orginate and it gets packed up as mortgage-backed securities and sold to other investors and it’s serviced by a 3rd party.
Local independent banks, however, do. For example, I originated with a local bank that doesn’t even do home loans anymore. Just for fun, I went into PropertyRadar and I see that it mentioned MERS in my deed of trust. They probaly sold it as well.
It doesn’t hurt to try. I think you’d have much better luck at the local level or going after private individuals. Did you know there’s a quick list for private lenders?
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Quick list? I’m not sure what that means.
Once you’re logged in, go to Discover>Criteria>Quicklists>Mortgage and there’s a ton of options. Private Money Residential Loans is one of them.
How have I never seen that?!
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Those quick lists are awesome. By the way, here’s the part of the show where Ellis talks a little more about how he vets deals. Thought you might find it useful: https://www.youtube.com/watch?v=-3OBZdYIeRM&t=1713s
Right now, we’re not expecting a ton of foreclosures but that can change. Thanks for showing up and asking the question here.
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You really don’t see foreclosures coming our way?
We’re watching containment of Covid and progress on a vaccine. The longer Covid impacts the economy, it could definitely impact foreclosures. However, Congress and the Fed are throwing lots of resources at the issue and it’s hard to see that stop any time soon.