As a growing population financed more costly purchases, total debt rose. But income rose even faster in recent quarters. By Wolf Richter for WOLF STREET. Total household debt outstanding ticked up by $71 billion in Q3, or by 0.57%, from Q2, to $17.9 trillion, according to the Household Debt and…

A bank or mortgage company forecloses on a property. After a few months of legal hassles, the lender finally gets clear title to the property and hires a local real estate agent. Of course, the lender, at this point, wants to try and recover almost all of the money lent on the property.

6 months or a year go by and this period is full of price reductions and repairs to the property. The property may have been vandalized, lived in by squatters, had new carpet and paint, even had new landscaping. The problem is usually that the lender refuses to set the price where it should be so the property, although shown many times, continues to sit on the market.

There is a hidden time limit for this lender. Does anyone know how long it is? How long can the lender keep a non-performing asset on its' books? How long can the property be an REO? We aren't talking about government foreclosures here (FHA and VA loans), the government can keep them forever. We are talking about bank or lender owned foreclosures.

I have a done a little research and it appears that the time limit that a private lender can keep an REO on its' books is 2 years plus or minus a little.

The questions is... What happens to the house or property AFTER the statutory time period has expired and the lender is forced to "get rid of the property at any price"?

Unfortunately, researching this topic has produced very little in the way of usable results. However, I did happen upon a few references to something called The REO Black Hole List. Apparently there really is a place that lenders can "dump" their old REO inventory as a last measure. And, they dump them at dirt cheap prices - usually for thess than lot value.

My research has found that there appears to be a handful of asset managers, companies that buy these old REO properties in bulk, that lenders turn to when they absolutely must liquidate the non-performing assets. These asset managing companies turn around and sell, in bulk, to a "secret" list of private, seasoned investors who actually purchase 50 to 100 to 400 houses at a time.

And guess what? These investors are able to purchase these homes, on average, for $2350 to $5000 per house! I kid you not. I actually spoke to an investor who bought around 182 houses direct from Fannie Mae for $400,000. You do the math. That is under $2500 per house.

The thing about this kind of setup is that the investor must buy all of the homes in a package - whether they are vacant lots, burnouts, or condemned. AND - they are not in one location but spread out all over the country. That's why the average price per home is so cheap...to spread the risk. But, these homes have all been in an MLS system somewhere - they were all REO properties at one time - so there is a way to find the market value pretty easily: Call a local agent!

AND since the investor may live in Maine or south Florida, he or she will also call a local agent to list these properties. They usually pay a high commission because the price will be low and because they have very little invested in the house. Does anyone have any experience with these types of investors? Or - if you know a local investor, would they be interested in this kind of "bulk buying"?

One other little tidbit I found out: a lot of the packages that these asset managers sell consist of only 10 or 20 homes. Think about that. You could buy 10 homes for $30,000 or $40,000. While some of them may not be the jewels you would want, several of them will always be great fix and flip homes that will sell for as much as you paid for the entire package.

Again, little information can be found on this "underground network" and the only place I could get any information was at this REO site. I know it exists. If you know how to get on this list or how to get in touch with the investors that participate, please post it! If you are in Ohio and I am in Alabama, we are not competing against each other!

A NYS Licensed Real Estate Broker shows you How to Buy Foreclosures!

Proven real estate investing course specializing in foreclosures and pre-forclosures.

You have rights, and even though you are going through some difficulties, a foreclosure lawyer can help.

Internationally recognized mortgage fraud investigation firm MFI-Miami has teamed up with the Weiss Ortiz law firm to create the ultimate Chicagoland foreclosure defense team to fight Chicagoland foreclosures. Call 888.737.6344 to learn more!

Governor Carney’s latest modification includes several consumer protections for Delawareans and Delaware families. Effective at 8:00 a.m. on July 1, filings for foreclosures and evictions can resume, but will continue to be stayed to permit the Justice of the Peace Courts to determine whether the parties would benefit from a court-supervised mediation or alternative dispute resolution.

The Mortgage Bankers Association, which represents mortgage lenders, on Thursday said that the foreclosure starts rate was merely 0.4% in the second quarter, 0.05 percentage point lower than the first quarter and on par with the rate seen during the housing boom.

Fort Lauderdale Foreclosure Defense Attorneys look to ease the government employees affected by the current shutdown by helping them with their foreclosure and housing needs, and deferring payment for such services until they return to work.

Florida's foreclosure crisis seems like a never-ending nightmare. Mortgages are caught up in MERS, an electronic database that most homeowners never heard of until the foreclosure crisis. Homeowners in foreclosure are worried that robo signing by lenders' employees may have led to mortgage fraud. The mortgage process itself is under scrutiny by the courts and government regulators who are asking: How could something so simple as a home loan go so terribly wrong?

Prior studies have found a positive relationship between macro-level indicators of home foreclosure and child maltreatment rates. The extent to which home foreclosure may be associated with child protective services involvement at the micro level is largely unknown.

Foreclosure filings are positively associated with child protective services involvement. However, this is true of the periods before and after a filing, which are characterized by economic and other stress, which may drive this association more than the filing itself. (Read the full article)

The Delaware State Housing Authority (DSHA), in partnership with five local housing counseling agencies, is hosting “Keeping Your Home Afloat”, a Statewide Foreclosure Prevention Open House, on Monday, July 22nd from 5:00pm to 7:30pm. Attendees will learn how the Making Home Affordable Program may be able to help them reduce the amount they owe on their mortgage. Homeowners who are “underwater”, or owe more than their homes are worth, are especially encouraged to come get more information about the MHA Program’s Principal Reduction Alternative.

Delaware State Housing Authority (DSHA) and the Delaware Council of Faith-Based Partnerships will be hosting a free Lunch & Learn on Tuesday, March 3, 2015 in the Carvel State Office Building, 3rd Floor Conference Room, at 820 N. French Street, Wilmington, Delaware.

DOVER — Delaware homeowners who face foreclosure, have fallen behind on their mortgage payments, or have questions about their mortgage can meet with lenders and housing counselors at two upcoming workshops in Dover on May 15 and Wilmington on May 16. At each free workshop, homeowners can also get information from the Attorney General’s Office […]

DOVER — A new state program is designed to help families and individuals who have experienced foreclosures, job loss, or other financial difficulties stemming from the financial crisis that began in 2008, Governor John Carney and other officials announced today. Fresh Start, a partnership between the Delaware State Housing Authority and the state’s financial empowerment […]

DOVER — Delaware homeowners who face foreclosure, have fallen behind on their mortgage payments, or have questions about their mortgage can meet with lenders and housing counselors at two upcoming workshops in Dover on November 13 and Wilmington on November 14. At each free workshop, homeowners can also get information from the Attorney General’s Office […]

Scammers ordered to pay thousands in restitution, barred from offering services in Delaware Attorney General Kathy Jennings announced Tuesday that the Department of Justice’s Consumer Protection Unit (CPU) has reached a settlement with two California-based companies requiring them to stop advertising and selling mortgage loan modification and debt relief services in Delaware and to provide […]

As homeowners and communities throughout the country continue to face devastating consequences from the deep contraction in the economy and the housing market, the Obama Administration today announced a new coordinated effort across federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times.

A Raleigh, N.C., real estate speculator pleaded guilty to conspiring to rig bids for public real estate foreclosure auctions held in multiple counties in eastern North Carolina.

Eight California real estate investors have agreed to plead guilty for their roles in two separate conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California.

Two Mobile, Ala., real estate investors and one real estate investment company have agreed to plead guilty today for their roles in a conspiracy to rig bids for the purchase of real estate at public foreclosure auctions in southern Alabama.

Two California real estate investors have agreed to plead guilty today for their roles in a conspiracy to rig bids and to commit mail fraud at public real estate foreclosure auctions in Northern California.

Eight Northern California real estate investors have agreed to plead guilty today for their roles in two separate conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California.

A Mobile, Ala., real estate investor has agreed to plead guilty today for his role in a conspiracy to rig bids and commit mail fraud at public real estate foreclosure auctions in southern Alabama.

Lisa Wright, 46, and Cathy Saffer, 52, of Pompano Beach, Fla., were charged today with a conspiracy to defraud homeowners and banks in a foreclosure rescue scheme.

Frederic Alan Gladle, 53, was charged on Dec. 9, 2011, in U.S. District Court in Los Angeles with one count of bankruptcy fraud and one count of aggravated identity theft.

The Access to Justice Initiative today released Foreclosure Mediation: Emerging Research and Evaluation Practices, a report resulting from a March 7, 2011, workshop with dozens of foreclosure mediation program stakeholders and researchers.

The federal government and 49 state attorneys general today have reached a landmark $25 billion agreement with the nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses.

Three Northern California real estate investors have agreed to plead guilty today for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California.

The settlement agreement with the nation’s five largest servicers announced today by Attorney General Eric Holder and the Department of Justice’s federal and state partners includes substantial financial compensation to homeowners who are servicemembers and establishes significant new protections for servicemembers in the future.

An Alabama real estate investor has agreed to plead guilty and to serve prison time for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in southern Alabama.

Two northern California real estate investors have agreed to plead guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in northern California.

An Alabama real estate investor has agreed to plead guilty and to serve one year in prison for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in southern Alabama.

Frederic Alan Gladle, 53, was sentenced by U.S. District Judge Lee Yeakel.

A federal grand jury in Mobile, Ala., returned an indictment today against two real estate investors and their company, charging them with participating in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions held in southern Alabama.

An Alabama real estate investor pleaded guilty today for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in southern Alabama.

A Northern California real estate investor has agreed to plead guilty for her role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California.

Alex P. Soria, 65, pleaded guilty before U.S. District Judge Lloyd D. George in the District of Nevada to one count of wire fraud and one count of theft of government funds in connection with a scheme to defraud homeowners who were behind on their mortgages.

A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California.

Lisa Wright, 46, and Cathy Saffer, 52, of Pompano Beach, Fla., were sentenced today to serve 66 and 60 months respectively for defrauding homeowners and mortgage lenders as part of a foreclosure rescue scheme, the Justice Department announced. The two women were sentenced by U.S. District Judge Kenneth A. Marra in the Southern District of Florida.

A real estate investor pleaded guilty today to conspiring to commit mail fraud at public real estate foreclosure auctions held in Raleigh, N.C., and surrounding areas, the Department of Justice announced. This is the second charge in the department’s ongoing investigation into real estate foreclosure auctions in eastern North Carolina.

Barrington Coombs, 58, of Weston, Fla., was sentenced today to serve a year and a day in prison for his role in a foreclosure rescue scheme that victimized desperate homeowners on the brink of losing their homes, the Justice Department announced. Coombs was sentenced by U.S. District Judge Kenneth A. Marra in the Southern District of Florida.

A Las Vegas man was sentenced today to 37 months in prison for operating a foreclosure rescue scam that defrauded distressed homeowners who were struggling to pay their mortgages.

Two Alabama real estate investors and their company pleaded guilty today for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in southern Alabama.

A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California today.

Two Northern California real estate investors have agreed to plead guilty for their role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California.

A former Los Angeles resident, who fled to Canada and was a federal fugitive for 12 years, pleaded guilty today to aggravated identity theft and bankruptcy fraud in connection with leading a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners.