Making a REO/bank owned offer? - - here are some tips!

Excellent info.
Thank you!

Good Tips and Guidelines. 

Don't be afraid to challenge their counter offers and addendums for validity.  I recently had a contract in which the selling agent refused to provide the HOA documents.  In my state that is mandatory thta the seller provide the info.  The selling agent refused of course I would not let up and reminded him that the bank requires can not supercede the state's laws.  After a medium worded threat they conceded.

Ann ~ thank you hopefully getting more information out will help the market to move!

Joel & Teresa ~ I solely agree.. counter anything that is in your best interest, nothing worst that failure is to not try. Especially if it is the law, it should be challenged. Thanks for the tip.

Rosemary,

good solid info- now if only the buyers will listen.

Billie ~ I know.  After all that's what we are here for!

Very good advice I will agree 100% on this one. As for my service area we have submitted lower than listing (lowball) offers depending on the days the property has remained on the market, and we have actually gotten acceptance or countered to a lower than listing agreed upon price as for repairs zilch, closing cost safe to say upto 3% of purchase price, escrow 30 or less, no warranty as-is. One thing I would like to ask and hopefully you would email me on this is, I recently went out of my area for my own investment to Menifee, CA and have been submitting full price offers on REOs and agents calling me back asking for more $$ on offer. Sometimes even $20k upwards on the listing price. Would you have a clue as to why this is happening on multiple properties, I have also submitted offers for my uncle in this same area. I really appreciate your blog and assistance thank you.

Good advice.  Thank you.

Benny ~ thank you.

My take on your question is that some asset managers are greedy!  They will turn down numerous offers for a few dollars.  They will lose buyers by taking too long and holding the "bidding war open too long" so it does not surprise me that they would ask for more than the listed price.  I have not had that happen to me but I would sure hate it if it did. I probably would ask the question to the agent in wrtiing just to see what they offer as an answer.  Please let know what you find out.  lol

And for sure there will many more REO games coming on board with the situation as it is and will be in the future.  You know the more of something you get, the games increase.

Robert ~ Thank you and I appreciate you stopping by.

Jacqueline ~ Yes the process is a bit different from a regular or a short sale. 

Jacqueline ~ Yes the process is a bit different from a regular or a short sale. 

Great information.  Although I really believe it differs from bank to bank or AM to AM.  Many of the properties that my clients have purchased that have been bank owned they have repaired inspection items.  Some of lender required while others are home inspection items.  It just depends how bad the bank wants to sell the home.  I have a listing where to bank told me to repair the electrical system since it had been damaged by the previous owners and electric could not be put on in the home without the repair.

Ron ~ thank you and also thanks for sharing your experience.  This is how we learn by sharing.  I had to jump right in myself and that is why I am trying to share my experience and knowledge so that others won't have to start at the beginning without knowing what to do. 

The REO process is different, but once you get it -- its OK and easy to follow.  You hit it on the head "stop asking for the "gimme's" know that you're buying an "AS IS" property and either offer what they ask or close to it or expect to be out bidded, and not get it.  Banks don't bend much.  Some will but it is a chance you take by trying them to bend.

Thanks again and you enjoy your weekend by staying blessed.

thanks for the info!~

Ron ~ You are welcome.

Great info, alot of buyers out there are very much informed.  I let them know up front that the Bank has already reduced the home tremendously and is not looking to give up anything further, not even a home warranty.  I offer a free home warranty to all my REO buyers and short sale if the bank won't pay it.  I recently closed a deal with EMC and was amazed that they agreed to pay $10,000 towards buyers cost at the last hour.  We were late on closing due to the buyer's lender and we had about $ 2700 in per diems, i was able to convince the listing agent to review the latest comps to see that the surrounding homes were still declining and days on the market were to 90-160 days.  If they did not contribute to close they faced placing the home back on the market at least $20K less for who knows how long. They gave up the costs and waived our per diem.  But this is certainly not common in our market. I was just lucky!

I have ear-marked your site for a future buyer referral in the Stockton area 

LeAndra ~ I appreciate all referrals and I thank you for sharing your experience with REOs.  I know that there are more situations happening with these sales and I believe that sharing is what we need to do to keep up on what could and has happened to others.  Thanks alot.

I will mark your site as well for referrals to you.  Thanks alot.

Hi Rose,

You are right on! I too list and sell REO's and buyers just don't seem to understand what "AS-IS" means.

Rudy

Great blog.  While REOs can be a great deal I think a lot of people misunderstand and think that REO means that they are going to walk away with free or even half off house.  Banks are eager to move these properties, but they are also interested in recouping their investment plus the costs of foreclosure and listing the property.

Coco

Rudy ~ this is a true statement.  The buyers and their agents are still in the traditional sales mode when making offers on REOs and really they do not and are not set up to work the same.  The banks really mean that they are selling the property as is.

But there are tricks the trade that the buyers and their agents are using to get the banks to bend.....it is called almost at the end of the escrow ... throw a curb ball!

Lexi ~ I too have a beef with the COUNTRY.... but what can we do? I feel like a sitting duck, waiting on them to decide if they are going to shoot me down or what.  They are slow. 

I mean if the homeowner is in the home, they will get alot more days in there waiting on the Country to make a decision.

Coco ~ I so agree.  Banks are giving the houses away.  They can hard nose --even when the list price is a little too high.

Michele ~ I am finding that it is Hurry up and wait... and patience, patience, patience.

Reggie ~ you are welcome, great to hear from you!