Isn’t that how it’s done? Don’t you call the bank and ask for a list of your foreclosures? If you call the bank, what department do you speak to, the mortgage department? CONVICT? Training department? If you want to get into a bank’s inventory, there are a few things you can do to increase your success rate.
First, understand that you are not the only investor in your rodeo. Banks answer the question, “Can you provide me with a list of foreclosures?” perhaps more than any other. Prospective real estate investors are under the mistaken impression that banks will sell their foreclosed properties for 0.10 cents on the dollar. While there may be cases where lenders have received such a financial beating on a property, banks pay people to avoid such a calamity. The bank has already foreclosed the house, so they don’t want to lose even more money by pricing it too low.
Most banks refer such calls to their real estate department or REO. And unless you’re a regular investor or real estate agent, you may be sent to voicemail that never responds. Most banks work directly with real estate agents who specialize in active REOs or investors with a track record.
So if banks only work with those who have an established relationship, how do you establish if no one from the bank contacts you? Working with the assigned real estate agent to list a bank’s REO properties. Banks will work with a local agent or hire someone within their ranks to prepare, list, and sell their inventory. By working with the agent who lists the houses for sale, you are basically working with the bank.
All it takes is your first successful closing and suddenly you are on the real estate agent’s “preferred” list. As an REO arrives at the bank’s inventory, you can expect a phone call from the agent to alert you to upcoming sales.
Take the first phone call to the listing agent and your first closed transaction. Once you’ve closed your first deal, it will soon be by your first name!