I found two REO properties. I have the address and the contact info on the person responsible for the property. Now what do I do? I plan on calling them but I don’t know what to ask. I am planning on doing a short sale with them and flipping to another investor. Please help! THanks~
Howdy Pinoydarv:
An REO property is already owned by the bank. A short sale is when the debtors still own the house and you are trying to get the bank to take less than the payoff for a cash sale. The owners/debtors get nothing in a short sale.
Here are a few problems you may encounter:
You will usually need proof of financing when buying a REO
Most banks will have an addendum to the contract and part of that will be no assignment of contract. Banks do not like profiteers making money off their misfortune.
All this said it can still be done depending on the bank and the market in your area. Most banks in our area are asking retail and will not accept much less. There are exceptions especially with ugly houses.