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Author Topic: ? re short sale on REO  (Read 1638 times)

Offline skydivecock

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? re short sale on REO
« on: October 06, 2005, 08:23:07 am »
I'm new to this game but have attended a couple forclosure auctions and out of about 100 properties maybe 5 or so actually got bought and the rest of them where taken back by the bank. In my area of SC there are hundreds of bank owned homes, Almost all of which are priced w/in 5% to 10% of MV.

has anyone had much success at offering the bank well below their asking price?  Alot of these properties need plenty of work done to them and the bank may only mark it down 10k to 20k which obviously doenst leave much room for the investor to profit.  I've got a coworker who has purchased 3 homes in 6 years, all where REO's and he lived in them all.  He's not an investor but he offered well below the bank asking price and they accepted every time.  He recently purchased a home for 190k and they wanted 220k and after rehabbing it appraised at 270k.

?IS it fairly common for a bank to accept less then asking?  Or is it more of a numbers game, where I may have to make 20 offers before I find a bank/property they'll take less on?  How much below asking does the bank generally come off?

thanks for the help!

Offline howste

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Re:? re short sale on REO
« Reply #1 on: October 06, 2005, 05:36:43 pm »
Banks are highly motivated sellers.  I've heard that for every dollar that is tied up in an REO property, they can't lend out 8 dollars.  So if they have a property worth $250k, they are held up from loaning out $2 million!

Having said that, of course you can offer them less than they are asking!  Just figure out how much the property is worth to you, and make an offer.  The worst thing that can happen is they'll say no, and all you will have lost is some time.

 




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