Post by mermaid on Feb 26, 2012 14:57:41 GMT -5
My mom and I have started buying homes @ foreclosure auctions to flip. Part of buying one is doing some due diligence, seeing if there is someone living in the home, is it a renter or the owner, etc. (never want to buy one if the owner is in it)
So this week there are 2 homes that we want to try and win. One is in a pretty nice subdivision. Mom went by there the other day & noticed it was occupied, but no one was home at the time. So I go by there today & knock on the door. I knew it was going to be a renter just based on the addresses in the foreclosure notice.
Ring the doorbell & 4 little kids answer. Ask for their mommy or daddy and dad comes to the door. Ends up being a guy I went to school with, haven't seen since 9th grade (1986). We chat for a couple minutes and then I tell him why I'm there. That the house is going up for auction this week. What were his plans, was he interested in trying to purchase the home from us, etc.
He is CLUELESS! Had no idea that this was coming up. He just moved in there in December. He tells me that "Nancy" the owner, owns the first 5 homes in the subdivision. What do I mean it's going up for auction. And then just sheer panic went over his face. OMG I feel terrible!
I came back home & checked the auction listing, go through the property appraisers & the tax collectors website. This Nancy woman USED to own the home, she turned it back over to the bank in 2010 but she is still renting it out & collecting rent like it's hers. (this has been a big problem all over the country) So basically this guy is paying rent to a woman that doesn't even own the home.
While this is a foreclosure auction even though the bank owns the home already, it is to make a judgment against her so the bank can either go after her or give her a 1099. I am so disgusted!
Don't think we'll be buying the home because if for some reason this guy can't qualify for a mortgage, I don't want to have to evict him. But I've put him in touch with my brother in law's bank and they can go ahead and start that process. He's going to have to do something, either get ready to move in 30 days or try to purchase the home from whomever buys it at auction. I feel terrible knocking on his door & giving him that news. But I guess at least a few days notice is better than someone showing up the day of the auction w/ an eviction notice.
So a word to all of you future renters out there - if you're renting a home or a duplex that isn't through a property management company, make sure that the person you are renting from actually owns the home!
So this week there are 2 homes that we want to try and win. One is in a pretty nice subdivision. Mom went by there the other day & noticed it was occupied, but no one was home at the time. So I go by there today & knock on the door. I knew it was going to be a renter just based on the addresses in the foreclosure notice.
Ring the doorbell & 4 little kids answer. Ask for their mommy or daddy and dad comes to the door. Ends up being a guy I went to school with, haven't seen since 9th grade (1986). We chat for a couple minutes and then I tell him why I'm there. That the house is going up for auction this week. What were his plans, was he interested in trying to purchase the home from us, etc.
He is CLUELESS! Had no idea that this was coming up. He just moved in there in December. He tells me that "Nancy" the owner, owns the first 5 homes in the subdivision. What do I mean it's going up for auction. And then just sheer panic went over his face. OMG I feel terrible!
I came back home & checked the auction listing, go through the property appraisers & the tax collectors website. This Nancy woman USED to own the home, she turned it back over to the bank in 2010 but she is still renting it out & collecting rent like it's hers. (this has been a big problem all over the country) So basically this guy is paying rent to a woman that doesn't even own the home.
While this is a foreclosure auction even though the bank owns the home already, it is to make a judgment against her so the bank can either go after her or give her a 1099. I am so disgusted!Don't think we'll be buying the home because if for some reason this guy can't qualify for a mortgage, I don't want to have to evict him. But I've put him in touch with my brother in law's bank and they can go ahead and start that process. He's going to have to do something, either get ready to move in 30 days or try to purchase the home from whomever buys it at auction. I feel terrible knocking on his door & giving him that news. But I guess at least a few days notice is better than someone showing up the day of the auction w/ an eviction notice.
So a word to all of you future renters out there - if you're renting a home or a duplex that isn't through a property management company, make sure that the person you are renting from actually owns the home!
I couldn't even think up a scheme that rotten. People are shitty.
My DH thinks opening the fridge (if there is one) is like a big game. Sicko. There's been some good foreclosures up here. SUPER cheap. My mom and I (and the men) are going to be flipping a couple if we find some that aren't too horrible.