Does anyone know of a way to contact lending agencies that have taken back washes? There's two in my area that have closed, and I suspect more will close by the end of summer. But I'm having a hard time getting ahold of these two lenders, one is in Texas. Is there some kind of list these banks would post the repos to?
Repo man
- Thread starter mac
- Start date
Danny
Member
Jim Caudill
Self Serve Operator
In our area, there is a very specific procedure that must be followed. The lending institution doesn't just "repo" property. The first thing that happens is the lender pursues foreclosure and goes thru the court sytem to obtain a judgement. Note that a judgement is a financial amount that the court has awarded the lender. The property is then listed for auction by the county sheriff's department. If you are the high bidder, your funds will be used to pay the auctioneer fee, then the county, the lender, and any remaining funds will be distributed to the current owner. The successful bidder will receive title to the property and will be responsible for any liens or taxes that may be due.
Here, the successful bidder is almost always the financial institution that holds the judgement. They have a representative at the auction that will be prepared to bid up to their judgement amount. Most other bidders will not be willing to pay what will be required to "beat the bank". This is how the lending firm gains title to the property. Once they have title, then they attempt to sell it using conventional methods.
If you really want a property, once it has been foreclosed on, contact the asset recovery division of the financial institution. Negotiate what it would take to purchase their "financial interest" in the property. Then, when you go to the auction, you bid just like the bank would. Whatever amount you bid, it will all come right back to you (minus the auctioneer fee). If someone want to outbid you and is willing to pay significantly more that it cost you to purchase the "financial interest", then you can let it go to the other bidder and make an immediate profit without ever lifting the first trash can. There are also some techniques to get the property on the books for an inflated value (think depreciation and future sale price) by doing this.
Here, the successful bidder is almost always the financial institution that holds the judgement. They have a representative at the auction that will be prepared to bid up to their judgement amount. Most other bidders will not be willing to pay what will be required to "beat the bank". This is how the lending firm gains title to the property. Once they have title, then they attempt to sell it using conventional methods.
If you really want a property, once it has been foreclosed on, contact the asset recovery division of the financial institution. Negotiate what it would take to purchase their "financial interest" in the property. Then, when you go to the auction, you bid just like the bank would. Whatever amount you bid, it will all come right back to you (minus the auctioneer fee). If someone want to outbid you and is willing to pay significantly more that it cost you to purchase the "financial interest", then you can let it go to the other bidder and make an immediate profit without ever lifting the first trash can. There are also some techniques to get the property on the books for an inflated value (think depreciation and future sale price) by doing this.
Jim Caudill
Self Serve Operator
Contd-
The foreclosure process and auction listing is a totally transparent process. On our County Sheriff's website, is all the auction listings, both upcoming and past. You will have to find out how things work in your area.
Here is a link to our auctions:
http://www.co.greene.oh.us/sheriff/sh_sales.htm
Click on the "red letter" hyperlinks to visit current sales or past sales. In the past sales you will note it is usually the bank that is the buyer. Also note, that in most cases, the judgment amount exceeds the appraised value. Don't think that you could have "beat the bank" by bidding just a little more than what the property sold for - the bank will bid right up to what they are owed. The auction process is simply a tool for them to gain title. You didn't really think that you could purchase a building worth 1mil for $500k when the bank is on the hook for $990k did you? If need be, the bank will lease it out until the market comes back. All this being said, right now mortgage companies are being flooded with homes they don't want. Single family homes and specific use properties (car washes) are probably 2 types of properties you could negotiate pretty hard to acquire.
The foreclosure process and auction listing is a totally transparent process. On our County Sheriff's website, is all the auction listings, both upcoming and past. You will have to find out how things work in your area.
Here is a link to our auctions:
http://www.co.greene.oh.us/sheriff/sh_sales.htm
Click on the "red letter" hyperlinks to visit current sales or past sales. In the past sales you will note it is usually the bank that is the buyer. Also note, that in most cases, the judgment amount exceeds the appraised value. Don't think that you could have "beat the bank" by bidding just a little more than what the property sold for - the bank will bid right up to what they are owed. The auction process is simply a tool for them to gain title. You didn't really think that you could purchase a building worth 1mil for $500k when the bank is on the hook for $990k did you? If need be, the bank will lease it out until the market comes back. All this being said, right now mortgage companies are being flooded with homes they don't want. Single family homes and specific use properties (car washes) are probably 2 types of properties you could negotiate pretty hard to acquire.
Jim Caudill
Self Serve Operator
Hey MAC, are you ever going to tell me the type of swivels you were using to replace the Powerain units. I think it was you that was describing a modification to let the high pressure cause the rotation and eliminate the hydraulic motors.
Jim, thanks for the info. What I am seeing here is much simpler, although the foreclosure and courthouse steps are used a lot for homes. Some of these washes, the owners just hand the keys to the bank and say see ya. The swivels are from Mosmatic. They have some with a mounting flange that is then bolted to the frame. Been over a year, almost two, and still working fine. Control the spin speed by angling one nozzle. Make sure you spin so as not to unscrew the unit. You can take off buckets full of hoses, swivels, and fittings. Power Rain still claims it hurts the unit.
