For those of us caught in situations (family etc.)  where we feel the pressure of having to buy in this market—we know we are at the peak but for various reasons the pressure and benefit of buying outweighs the risk of losing money.  We are looking at other avenues where we can scoop up a possible "bargain" at a reasonable price.  Obviously, foreclosure is one of those avenues but most of us are not at all versed in this arena.  Perhaps, some of our more experienced bloggers can educate us on buying these foreclosures.  Can someone educate me on the usual time frame that it takes a lender to turn around and list a property after receiving it back from a Trustee Sale.  Another words, how much time do we have to contact the lender before they list it with an agent and therefore would have to pay a commission.  Secondly, do we need to do a title search on these properties, or can we assume they are free of other encumbrances.

Of course, I’m aware of the fact that more senior loans would need to be honored but other than that, are there any other "due diligence" that one needs to do prior to making an offer?

The timeline is different for every lender some are quicker than others and some a slower. I will use a slower example. The NOD gets filed once they are about six months behind, about 30-90 days after the NTS is filed and in 30 days it should go to auction. Of course most will get postponed or cancelled. It can happen as quick as six months to go REO or if the "owner" is smart can delay it for about two years.  
First check out this site http://www.foreclosureforum.com/index.html there is plethora of info on the site. I think I have to credit oc_fliptrack for this one too.
Also check http://www.biggerpockets.com/bank-reo.html I have only used them because they post the links to the bank’s REO section. I would think there is some good info on there as well. I would suggest taking a look at Countrywide’s REOs and see how many they hold in Sacrapmento and San Diego. Just plain scary.
Other sites that are useful:
http://www.ttc.ocgov.com/tcweb/search_page.asp
http://cr.ocgov.com/grantorgrantee/index.asp
Yes you will need a title search to find out if there are going to be any problems. The last thing you want is for a lien that was never reconveyed making your sale invalid. Nope sorry good luck in getting your money back. I have a contact at a title company and once you find a place that you are serious about let me know and we can exchange email addresses and I will give you the contact. The only thing is you will have to use them for your title insurance and they will take very good care of you. If you don’t I will know where you live  . 
I hope that helps and if there are more questions go ahead and post them.

thanks graphrix, however I don’t think I worded my question properly.  I meant to say that once the trustee sale has taken place and there are no outside bidder—how long does it usually take for the lender to turn around and list it with an agent.  In these circumstances would a title search still be as crucial?  again thanks for all your help.

ocprince - The turnaround time for the bank will vary especially right now. It depends on the amount of staff they have, how many REOs they have, any title problems and condition of the house. oc_fliptrack highlighted one where they took everything they could including the kitchen sink. http://www.oc-fliptrack.com/2007/02/645000-kitchen-could-use-some.html So I would say it could take 30 days to about six months. I know of a few that were taken back in December that have not been on the MLS yet.
In this circumstance a title search would not be required because the bank should clear any problems in the chain of title. However I would pay the extra money for a full title policy when it comes to the title insurance. I’m sure you know but title insurance is required but there are different policies. I’ve bought one REO a long time ago but felt the extra cost for a full policy was a wise decision considering it was a few hundred bucks more. I still recommend using the escrow and title company that I use because they know more about title than most out there.  
I think that is what you are curious about. Let me know if you still have more questions that’s whatthis forum is for. If you do start looking into this please share your experiences with us. We can always learn something new.

thanks again graphrix,  I think your knowledge base is broader than mine and there isn’t much that I could tell you that you don’t already know; however, I’ll definitely share things that I learn along the way.  I tried Fidelityasap.com that you recommeded and its great for the trustees sale.  However, I’m not sure if you are familiar with County Records Research—their NOD list are a lot more complete in terms of breaking down people’s loans. they seemed to be more up to date than foreclosure.com as well.  They are a bit more expensive at $89/month. 

ocprince - I checked out CRR the other night and I was hesitant because of 1. the price and 2. being up to date. Can you do me a favor and check the status on 225 Sklar in 92694? It will be a test if it is current. Then maybe the $89 would be worth it. Thanks.

Hi Graphrix, I’m at work now.  however, when I get home tonight I’ll check on that address for you.  I don’t recognize the address but it is very possible that I may have automatically deleted it b/c it is not in an area that I’m interested in buying.  I’ll get back to you tonight.

Hi graphrix, just got back home from work.  Anyway I looked up that address and I don’t see it.  That may mean that your suspicion was correct that CRR is not too updated or it may mean that I may have deleted b/c when it came through I was not interested.  I was given a "spreadsheet software" along with the service.  Every weekday after 5:00PM a new list of NOD and NTS are available for download.  I download these into the spreadsheet and if the property is interesting I follow it.  Otherwise, I automatically delete it.  If I don’t the spread sheet will be too overpopulated and it would too much of a bear to follow.   I just joined 2/10/07 and received data back to 2/1/07.  Most of the NTS have the phone # of the trustee and the trustee sale #.  For trustee sales we would have to call the trustee to get the info on whether it is postponed or cancelled…  The NOD’s and NTS’ are more specific than most listings.  All the loans are included with the info of which loan is being defaulted, the amount, and the delinquency date.  If you want me to check on another address I would be happy to try again.

ocprince,

If it’s not too much trouble for you, could you check 30 Antique Rose for me? I was thinking of joining CRR after I saw the interior of the house, but it looks like I might not have a chance. I believe the trustee sale will be on 3/15 - next week. 

At the very least I believe I will attend the auction just to see the process.

muffdaddy,
I’ll check for you when I get home tonight.

Thanks ocprince.

I found something strange. I reported before that the trustee sale for 30 Antique Rose was scheduled for two dates, one for 3/15 and one for 6/22. I called recon trust today (automated line only picking up) and got the 3/15 date confirmed as the sale date. I assumed this was the true date of sale, and the 6/22 was a mistake. However, I entered 6/22’s TS number in (a differenct TS number) and it confirmed that sale date too!

On www.fidelityasap.com I saw that the 3/15 opening bid was about $1.1 million. The 6/22 opening bid was about 380K.  They both had the same address.

 
     
        Thursday

        3/15/2007 2:00:00 PM
       
       
       
         
             
                Address:
                30 Antique Rose

               
             
             
                City:
                Irvine
             
             
                State:
                CA
             
             
                Zip:
                92620
             
             
                County:
                Orange
             
             
                APN:
                551-101-20
             
         
       
       
       
       
       
       
         
             
                Sale Status:
                Postponed to 03/15/2007 2:00 pm

                (Bankruptcy)
             
             
                TS Number:
                0618130
             
             
                Notice of Sale Amt:
                $1,098,247.00
             
             
                Opening Bid Amt:
                0
             
             
                Sold Amt:
                0
             
             
                Sale Location:
                At the North front entrance to the County Courthouse, 700 Civic Center Drive West, Santa Ana, CA.

               
             
             
                Trustee:
                Recon Trust Company N.A.
             
             
                Trustee Phone#:
                (800)281-8219
             
         
       
       
       
     
 

 
     
        Friday

        6/22/2007 2:00:00 PM
       
       
       
         
             
                Address:
                30 Antique Rose

               
             
             
                City:
                Irvine
             
             
                State:
                CA
             
             
                Zip:
                926204802
             
             
                County:
                Orange
             
             
                APN:
                551-101-20
             
         
       
       
       
       
       
       
         
             
                Sale Status:
                Postponed to 06/22/2007 2:00 pm

                (Bankruptcy)
             
             
                TS Number:
                0603914
             
             
                Notice of Sale Amt:
                $380,214.29
             
             
                Opening Bid Amt:
                0
             
             
                Sold Amt:
                0
             
             
                Sale Location:
                At the North front entrance to the County Courthouse, 700 Civic Center Drive West, Santa Ana, CA.

               
             
             
                Trustee:
                Recon Trust Company N.A.
             
             
                Trustee Phone#:
                (800)281-8219
             
         
       
       
       
       

What is going on here? Are they auctioning off the primary and junior loan? This can’t be ... the trustee sale wipes out the junior loan right?

I’m no expert at this muffdaddy; however, it is clear that he is defaulting on both loans.  Perhaps he defaulted on the second later than the first thus the sale is at a later date.  Yes the auction will wipe off the jr. loans; however you can bet on the fact that the lender of the Jr. loan will be there to bid on the property otherwise they are out 380K.  My guess is they still have to follow through with the proceedings just in case the first loan is reinstated.  May be others with more experience can weigh in.  Again, I will check the data I have at home and may be elucidate further.  Unfortunately, I’m still slaving away at work.

Hi muffdaddy,
I don’t see Antique rose on my list at all. So unfortunately I can’t help you.  Again, I may have deleted it.  Let me know if you are interested in another property .

No problem ocprince, thanks for trying! With this Jr. Loan having interest in the property this might complicate matters anyway.

muffdaddy - I don’t know if this will help you but both of the loans are Countrywide. So it doesn’t make sense that they would auction off the first in March and the second in June. I would imagine that it will get postponed again anyway. If the sale goes through it will most likely go through the BK court judge. I am not sure how or even if you can find out the BK case number but if you could you could somehow place an offer with the judge. I have never dealt with a BK sale because it always seemed like it was a big PITA. Maybe you can find a Realtor that was around in the 90s when BK sales were more common.

Thanks for the info graphrix, it does seem like a big PITA to deal this. I’m not sure I can really see this house by this weekend; even though the owners listed it on MLS, their agent is in Riverside (?), they don’t have an open house sign up, the MLS listing is also listed for West Irvine (?). Their agent probably doesn’t care.

I will see the similar houses for sale in the neighborhood to determine if it’s a good fit. If my family feels the similar plans are ok, we might consult a lawyer to explore our options.

muffdaddy - You said you have a friend who is a realtor so he/she should be able to show you the house anytime. As for their agent it seems that the newbies get all the foreclosures/BKs or they are court  appointed. I have friend who is a trust and business attorney with her RE broker’s license. I will ask her if she knows anything about buying a home through a BK. If she does then I will let you know. It could save you some fees.
I have been in a similar situation as you and understand the importance of having a single story home or at least living area. I was very fortunate to be where I was at the time but even two steps started to scare me. I also wish I had wider doorways which it sounds like the place you are looking at was designed for. It’s those little things you would never notice when you are young or have never been in a situation where it matters. I may be a housing bear but there are certain situations where it just doesn’t matter. Of course I want to see you get the best deal you can. 

Thanks for the words of encouragement and your advice graphrix. I really do appreciate your taking the time to address my concerns.

I got an update from my realtor friend who talked with the seller’s agent. Apparently, the seller’s agent was instructed to take house off the market - the agent was surprised to hear that the house still showed up on MLS.

This makes inspecting the house pretty hard - unless the desperate seller is willing to open their doors themselves. The seller’s agent admits it’s one big mess. The seller already got an offer for 1.4 million from some prospective buyer, but was unwilling to even counter it. They seem to have put all their eggs in one basket - riding on the hope where some guy drops $1.975 million on their house.

graphrix,
I’m thinking more and more this(foreclosure) is the way i should try and get a house in irvine. I have some relatives who recently came into a huge chunk of liquid assests from selling their business and are looking to use it. I’ve talked to them about the idea of securing a home on auction with their capital and then i purchase the house from them. Obviously capital gains and the such are an issue, but as long as the selling price isn’t fraudulent between the seller and I, what do you think of this idea?

Hi WantToLiveInIrvine,

Good luck with this house - you won’t be getting any competition from my family. I thought I was going to at least follow up with the trustee sale this Thursday, but my father doesn’t want to deal with all the messy details that a foreclosure purchase brings. Possible eviction proceedings with all the associated legal costs, buying the house as-is, etc.

Many thanks to all the people who answered my questions - especially Graphrix!

I think my housing search ends today. We looked at Mille Fleurs in Woodbury - Plan 2 and 3 meet our needs, but my father pretty much despises the exterior aesthetic of the houses there (and all new housing developments in general, i.e. Serra in PS). The interiors are nice and sizable, but the exteriors of these houses make them look similar or smaller than our current house, which low 2000s sq ft. It’s something my father just can’t come to terms with. Unless we can get those houses (plan 2/3) for 1.1 or 1.2 Mill, I think it’s a no-go.

We tentatively decided to search for a contractor to remodel our current house to accommodate my terminally ill mother’s needs for a full bath downstairs. Anybody have any leads to a good contractor? Thanks in advance

WantToLiveInIrvine - First I would consult an accountant about maybe going on title on the intial purchase. There might be away to reduce the taxes but I am not sure. Maybe a trust would work. I will be talking with a trust attorney this week so I will see what see says and let you know. What is your relation to the family members? 
Second I would go to the auction if that is where you plan on buying and get familar with the process. Make sure you go a few times and take note of who is there. You will notice who the professionals are and usually when they aren’t bidding they know something you don’t. I went a few weeks ago and there were not too many pros there. I know a few and they have been on an extended vacation lately. Many of the properties are not good deals because the loans were done in 2005 and 2006. Lots of fraud too.

muffdaddy - no competition here either. That isn’t the property i’m interested in.
Graphrix - The relative in question is my father. My whole agenda is to purchase the home on the "up-n-up" from him and have my wife, my 30-year loan and worry about the next house when that time comes.  I’m not sure, if i get on the title initially will the bank still give me a loan to buy a house i own already? I plan to start attending a couple of auctions to see the scene. Is there another way to purchase foreclosures aside from auctions? Someone said its easier to negotiate with a homeowner/bank during foreclosure for a short sale than the auction process… do you agree with that? and is it a guarantee that auction price will be cheaper than any open market sale price?

excerpts:
"Don’t think you’re going to buy a house from a bank at a discount. It’s not going to happen - you’re going to pay the same price you’d pay on the MLS.
Also, at auction you really don’t know if you bought the house you think you’re buying. There’s no verification or guarantees of address or parcel number, and no guarantee or verification of other loans or liens that may be attached to the house. And no guarantees of access to the property for inspections. There’s no title insurance or escrow.
People take for granted what their title insurance provides them. You need to do that research yourself, and no one at the county recorder’s office will help you. Buying at auction is the absolute riskiest way to go, and I advise no new client to start there. They really have to be perfect at title research and property inspections before they risk that kind of money."

http://www.mercurynews.com/realestatenews/ci_5387933

Title report may not show all the leans because a report is as good as the title researcher.  Do you pay title search enough to get a very comprehensive one?  I would not trust a free one from a friend. 
Then there are  loans against  the home filed just days before title search; therefore does not show up in the report.   If I buy these foreclosure, I certainty will not buy without a very deep discount for taking the risks.
You have to be extremely careful to buy a home from anyone/MLS.  Period!
You have to absolutely know who the homeowner is.  Someone I know just bought a home from a homeowner and lost his deposit.  Turn out, the house was in NOD just a few weeks after he gave deposit to the seller/homeowner.  The homeowner, turned out, is a scam artist.