Bob Marquedant
Local Realtor 25 Years
508 341-5630

Framingham MA Homes Condos For Sale by Local Realtor Professional 

Homes for Sale Framingham .com

Bob Marquedant   Local Framingham Realtor

Bank Owned Foreclosure Properties
We have been getting our clients great deals on Framingham area foreclosure properties since we sold our
first bank owned property bank in 1989.  From 1989-1995, no one sold more foreclosure properties in our
area than us.  We know bank owned property procedures and protocols and can save you lots of time and
aggravation by helping you understand how banks work and what you need to do to get the inside track on
bank owned and foreclosure properties. Call us anytime with questions. 

Bank Owned Basics:

Okay when a property has been in default for more than a 30 day period the bank has the ability to try and regain ownership via foreclosure.  They can do this either by petitioning the court for a foreclosure auction or by making arrangements to take possession by Deed in lieu of foreclosure. The latter is similar to someone turning in the keys.
Normally it can take upwards to 7-14 months for an actual auction to take place as the mortgagee is not always keen on taking back a delinquent property. What happens when a Deed in Lieu is not an option is that the banks attorney will file a notice of default with the courthouse or jurisdiction and petition to conduct the auction. They need to post consecutive notice in an area newspaper or town hall to try and garner as much interest in the auction as possible in order to try and obtain a fair market value for the property at auction. This is done to try and avoid a bankruptcy judge from overturning or staying the auction due to noncompliance with the Uniform Fraudulent Conveyance Act.  Suffice to say, it means that during an auction the property must be bid up to obtain a “fair” market value which is chiefly why most properties at auction end up going back to the lender who is often the high bidder.
Once a property clears the auction, it is then typically assigned to someone the banks REO (Real Estate Owned) Dept or to an asset manager at an outsource company that the bank has contracted with. Shortly after the asset is in REO status, the bank usually will get a post auction appraisal and/or one or several BPO’s (Broker Price Opinions) from area Realtors.  This is done to try and establish a market value of the asset so that it can be listed with a Realtor and disposed of. 
During this time the property is usually re-secured, winterized, tenants are evicted, and electricity is turned off. In some cases the property is boarded for security reasons.
Once the property is listed with a Realtor, it will again become available for purchase based on the terms set forth by the bank or asset manager.