if this aint advertising I will eat my hat.

looks like a duck quacks like a duck, walks like a duck, chances are it is a duck.

Okay, I'll bite...... Can you tell me why GMAC or other lenders will not accept a deed in leiu as opposed to a foreclosure? Wouldn't it be easier for them to accept the house back and immediately sell it as opposed to drawing out a foreclosure for 6 months? I am sure some homeowners left their property at day 1 of being late and want to let the bank have their property back immediately as opposed to months from now with it sitting vacant. Just wondering. It seems like the banks have lost their minds or something.

I can't really speak for what a bank will or won't do before foreclosure. My job is to handle the asset after the bank has foreclosed. I do know that if a lender accepts a deed in lieu then it does release the borrow from the debt. So unless the debt is secured then the lender won't do it. Also, a lot of borrows are upside down and the lender won't consider the deed in lieu unless the total consideration is equal to, and does not exceed, the fair market value of the home.

The irony is that they usually end up selling the home for a substantial loss after a long time on the market (in most cases).

Okay, I have a question for you then. Once a house is officially foreclosed, doesn't the bank have the responsibility of all past and present debts & liens against that house? Shouldn't the bank be responsible for all HOA payments and requirements once it has the property?

Once the foreclosure has been completed all jr. liens are wiped i.e. 2nd mortgage. This doesn't mean the borrower is in the clear as the 2nd will want their money. It does vary by state but for the most part the bank is not responsible for anything prior to foreclosure. I have approved payment of delinquent items such as HOA, water, city violations, and mechanics liens. The bank does continue to pay all HOA fees and assessments after foreclosure and ensure the property is maintained to HOA standards.

Huh!  Then why is it necessary for volunteers to clean the yards of homes that supposedly have been foreclosed. 

Isn't true that lenders drag their feet when it comes to completing the foreclosure process so they won't be responsible for the HOA dues and  maintenance?  

And isn't it true that liens filed during this period of time will generally not be satisfied?

Again, it does vary by state.  I have never heard of volunteers needed to clean yards of these homes. Perhaps that is just done on a local level to maintain the neighborhood, hence volunteering.

I don't know if lenders drag their feet since I deal with post-foreclosure but I do know that there are backlogs in a county with a lot of foreclosures. This creates a delay in the foreclosure process that may appear to be because of the bank. It does the bank no good to drage their feet since they will still be taking care of the preservation (maintenance) and they will still have to pay the dues once it is foreclosed. You would be surprised at how many HOA's actually refuse to send us billing info because they won't recognize that the home has been foreclosed. The ones that do cooperate will get paid what is owed. Again, some states don't hold the bank responsible for HOA dues prior to FCL but a lot of them do.

Yes, it is generally true that a lien will get wiped out at FCL. This also varies by state.

The bank takes possession immediately upon FCL however the occupants may remain in the home until eviction. AZ does not have a redemption period so the eviction can take place within a few weeks depending on the Sherriff. Some states have a redemption period almost 6 months long. This means that the occupant can lose their home but remain inside rent free unless a judge grants a relief. In MI it used to be a year!

Once they fcl they assign to my company. I will assign a listing agent to the property and they will go out to determine if it is occupied or vacant. If it is vacant then we will secure and preserve immediately. If it is occupied then I will have my eviction department take over to do what they do. The bank does have the right to preserve the property while occupied but not in the interior. I.E. if the grass is getting too high we will get it cut avoid fines, etc. 

Aside from redemption/confirmation periods, personal property, and some other minor issues that will delay listing, the property is in a pre-marketing period where they will get values from the listing agent and either an appraisal or another CMA. This usually takes around 7-14 days on average. Once these values are received I will look them over and determine what will be the market value for the home and then set a list price and get it on the market. Here is a timeline of one home in our inventory that is in Maricopa: 6/13/08 fcl date :: 6/17/08 assigned to my company and rekeyed :: 6/24/08 home cleaned and grass cut :: 6/29/08 :: home is on the market.

Volunteers have cleaned hundreds of yards thru the "Copa Cares" program sponsored by the City of Maricopa, Ace Hardware, and the various HOAs.  Read about it in the "copa cares" thread of this forum if you're new here and then explain why the weeds were 5 feet tall in many of these yards.  These homes obviously have been vacant for months. 

We've still got more to do in some of the neighborhoods.  Maybe the HOAs can give you a list of the ones we've got scheduled for volunteer cleanup and you can have the lenders do it.  That would truly be a blessing to community and you'll become an instant hero to all of us who love our community.

trosales

where would I find a list of all foreclosures in the 85239 and 85238 zip  codes?

Thanks

There are many companies that do what my company does so it's possible that they haven't focused much on preservation. However, I would be happy to check any homes that are an eyesore against the ones in our inventory and speak to the person responsible. I can assure you that they will be taken care of ASAP.

Another note to consider is that some people do abandon their homes while pending fcl and it can be a month or more before the bank takes possession. This might account for some of the weed issues.

You can google "foreclosure listings in AZ". That is where this came from:  http://realestate.aol.com/Maricopa-AZ-foreclosures

buybankhomes.com is another. I can't vouch if the information on the upper link is current but I do know that the buybankhomes site is current and sometimes even ahead of the game.

It would seem to me the agents assigned to the properties should be keeping an eye on them to see if they need to notify companies like yours of any posible HOA violations (such as unkept yards, weeds, etc) or break-ins, newly broken windows, etc, that would affect the marketability and/or value of the property that they are trying to sell for the bank, and to help make arrangements to have things corrected or maintained.

I know banks sell REOs in, "as-is" conditions, but curb appeal goes a long way in selling and slowing the decline in property values within a neighborhood.

R/E you are correct. The listing agent assigned to the property is our eyes and ears. They are the ones who we rely on to let us know about the condition. I have removed many agents that have failed to let me know about something that I found out when the city sent me a bill. It is our purpose to maximize the amount the property is sold for so we do what is needed to ensure the property is well maintained. If we don't then we aren't doing our job and taking care of our client.

I have managed thousands of properties around the country and have only physically been to about 10, all in CO where I lived. Now that I live in Maricopa I am getting all of the listings in this state (and the others I mentioned in my original post) so I am now tasked with doing inspections weekly in my home city and monthly in other cities in AZ. Let me toot my own horn by saying you won't find any eyesore issues with any of my properties.

If you notice a property that is for sale and not maintained, call the agent. If they don't respond accordingly then find out if it is bank owned. If so, then call the bank and they will refer you to the asset management company they have assigned it to (unless they take care of their own then they will send you to the asset manager on their end). If there is no sign, or notice, or anything else that states who is handling the property then chances are it's in the limbo stages and nobody is taking care of it. If this is the case then just email me the address and I will see what I can find out on my end.

Monthly inspections in other cities is a good way to see some of the sights that AZ has to offer. 

Yup and I am all for it. Especially since I can expense the gas!!

Thanks, trosales.  Welcome to the Forum.