They would be afraid that the lender would publicize their addresses if they fell behind in their payments, and they wouldn’t want all of their friends to know that they were having financial problems. Furthermore, a large inventory of foreclosures could make the lender’s financial position appear shaky, and people might hesitate to deposit money [...]
To provide a context here, one REO specialist for a major lender told me that it cost one million dollars per month to cover the expenses for the 500 properties in his inventory! Problem #3—Money must be held in reserve to cover “nonperforming assets.”
The foreclosure “stigma” that conjured up an image of an evil banker with a black cape, moustache, and top hat is a long-forgotten memory. Lending institutions have become reluctant property owners, charged with the overwhelming task of managing, marketing, and selling the repossessed properties in their inventories. Here are five reasons why foreclosures are a [...]
Sometimes a property never reaches the auction because the owner, experiencing (or anticipating) severe financial hardship, works out an agreement with the lender to turn over the deed (and the keys) in exchange for a full release of the remaining mortgage obligation.
How often does the publication come out? Foreclosure auction lists come out weekly, biweekly, and even monthly. My preference is for lists that come out weekly. The idea is to get the listings that give you the most lead time, before the auctions begin, to complete your prebid preparations.
