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New Construction - Possible Foreclosure

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Real Estate Agent with Robert Defalco Realty
Today I took out a buyer and we found him a very nice apartment in a new construction building and I wrote up an offer for him. I was also going back and forth to another real estate office to pick up keys for another property and the other broker was very anxious for me to push him to buy the property that she had listed. I told her it was whatever the buyer decided and she stated that when I came in to pick up the key and mentioned the other property, there was a builder in her office who heard that my buyer was interested in the other building and he heard that that building even though it is not completed is going into foreclosure. Right now I don't know what to do.  How do I even begin to find out if there are problems with this new construction going into foreclosure. Of course I will be honest with my buyer and tell him what I found out and try to do whatever research I can to see if this is true. In this business, the old saying goes "never a dull moment".  Anybody have any suggestions I would appreciate them because I am truly baffled right now.
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Ken Cook
Content, coding, marketing, host. - Marietta, GA
Content Marketer/Creator
Foreclosures, as you know, are only public information once they are made so -- until then you just need a good friend in the commercial lending business. It's a small community and they would know. If you don't know a commercial lender (at a local bank probably) ask your broker or other friends in the industry. A loan officer probably won't be able to help you unless they have a commercial lender who is their friend. The other way is to see how many liens are against the property and for how much. One tale-tell sign on commercial or construction projects headed for foreclosure is an increasing number of liens being filed against the property. Then there are the contractors who had been working on the project - ask if they know anything. If they do they'll be happy to share the wonderful news. Go gettem Dick Tracey!
Jan 30, 2008 01:17 PM
Shannon Jones
The Shannon Jones Team - Long Beach, CA
Long Beach CA Real Estate

In our state, if there's been a "notice of default" filed (the first step in the foreclosure process), then it's public information. So you might have your title company check to see if there's been any liens or noticed filed against the property. And if it's a publicly-held company that's building it (probably unlikely but you never know), you could maybe check their financials to see if they're solvent. Short of that, ask the listing agent for the building. They probably have some idea of what's going on.

Another possibility would be to check with a local business reporter to see if they've heard anything. That might be a story they want to pursue if they haven't.

Good luck to you!

 

Jan 30, 2008 01:36 PM
Frank Rizzo
Cornerstone Realty Partners - Staten Island, NY

Well, if you are a sellers agent, then the property being in foreclosure is not something you would have to let the buyer know. Besides, unless you knew for sure it's just speculation. (And would that be the first time one builder bad mouthed another???)

Now, if you're a buyers agent then you should verify that information and let your buyer know.

Jan 31, 2008 02:18 PM
Concetta Pepenella-Timmons
Remax Metro Staten Island, New York - Staten Island, NY
Associate Broker

Yes, You should disclose this information and let the attorney and title company check its validity.  I am curious of the out come as I comment on your post three months later.

 

Apr 17, 2008 11:36 PM
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