I was wondering if you guys are getting better deals on REO properties from banks. I would think with the crisis on wall street these companies would take anything on a foreclosure to just inject capitial back into their buisness.
Are you guys getting your offers accepted at lower prices now ???
if you have had a reo offer accepted can you tell us some info. which bank owned it and what kind of price did they go for.
the more recent the better. I want to get an idea of how these banks are treating their problem foreclosures. also was thinking there has to be 1 bank giving them away to anyone who is offering cash.
I’ve put in a couple of offers on REOs at what I thought were low but fair prices. No takers so far. One did finally sell about 9 months after my first offer for $10K more than my offer but $55K less than the original asking price.
I put 3 offers on REOs back in August. I thought they were fair offers (I even sent them my financial analysis showing them the ARV, my profit, the rehab cost, etc… I know… I know… Rookie mistake… :O)
Anyway no one accepted my offers. In one instance the realtor called me back stating that they got another offer for a higher price and asked if I was willing to raise mine. My answer - no. that was my best offer. The property went into contract with the other person and is now showing as pending in the MLS.
The second property - the realtor called me back stating that the bank was not willing to sell for my price. They countered at a price higher than the asking price in the MLS (???). I countered with 3K more than my original offer. They declined. I am monitoring that property. It still hasn’t sold.
The third property - the property was going to auction. The realtor submitted my offer to the auction house and I received an email few days later stating that the seller had declined my offer. That one was a really low offer ($17k for a 3br / 2 bath house). But that was the number I could feel comfortable with.
Eventually I ended up buying a property at a REO auction - the property is under contract. ARV $130k. I got it for $65k + 5%. This was below the reserve price for the auction, so my winning bid was contingent on bank’s acceptance. They eventually came back and accepted it.
Thanks for sharing J1dias! Liquidity, I’m a REO specialist in Manassas, VA and I personally have seen a huge increase in buyers and investors making offers there. One of our properties had 8 offers in one week! I think if your total monthly cost(80%mortgage+hoa+tax) is $300-500 below rental rate then just buy it at list price before someone else does! Having trouble finding deals like this? looking in Manassas? firstname.lastname@example.org