I sent letter’s & emails to a bunch of different mortgage companies and banks this morning. This is what I wrote:
Hello, I am interested in purchasing REO’s in the Tucson area.
If you have any available could you please send me information on them?
If you don’t have any available right now, could you please keep me in mind if any become available in the future?
I am a private investor looking to purchase properties below market value that may or may not need fixing that I can rent or sell after repairs. I can usually pay cash and for the times I cannot I have financing available.
Thank you very much for your time,
My name
My number
My email
I know it’s not the “perfect letter” but it get’s the point across.
My question is when/if they call or write back what questions do I need to ask about how the purchase of an REO works.
I’ve never purchased them before and I’m sure they (the lender’s) all work differently so any advice would be GREATLY appreciated.
Most REO’s are listed with Realtors. Some banks etc have websites that list the REO property and how it is being sold. You may find a deal going to these websites as well as your letters.
Most of the properties are being sold as is and the lenders will get you to sign an adendum to the contract explaining this in about 30 pages. Also included will be an agreement about the type deed you will get at closing. It will be a special warranty deed because the bank obtained the property thru foreclosure. The gist of this is that they will not warrant the title but you can buy a title policy and should do so.
You will also find banks hard to deal with if you plan on flipping the deal. Do no put and or assigns on the offer. You will need proof of funds or a letter from a lender pre-approving you for a loan.
Thanks for responding four of the lender’s I emailed have already said they sell 100% of their loans so they don’t have REO’s but they would like to do financing for me for the deals I don’t have cash for.
This lender originates the loan and then sells them. They are in fact a mortgage broker.
They sell them to make a few points. They can sell them one at a time or pool them together and sell them in larger bundles. These type lenders are also know as mortgage bankers.
Just a thought that you might also check with some local Credit Unions down in the Tucson area. I work with some up in the Phoenix area and they are usually much nicer then the banks.
Hi everyone. So far 1 lender has replied and said they would keep me in mind and another wrote this
Angelina,
Sounds Great,
I’ll have Maria put you on our FFS and I’ll have Janna email you about setting up an appointment.
Bill
PS. Just curious how did you here about us?
What is an FSS?
“Janna” already emailed that next Tuesday would be real good for Bill and for me to let her know what time would work for me other than the lunch hour.
