The high foreclosure rate has mirrored high REO portfolio numbers for most lenders and servicing companies. Because of this asset managers are looking for new and creative ways to liquidate their portfolios. One asset manager I spoke with a few days ago told me that they were considering auctions for some of their harder to move properties. This could mean even bigger savings for investors across the country.
I’ve worked with auctions before, but not specific for REO’s. I’m sure the process will be the same, but how do you guys and gals feel about purchasing properties at REO Auctions? I’d like some feed back to help expand my insight before I meet with more asset managers next week! Also, please be sure to mention what state you are in.
GooD LucK! :beer
Bigger savings? Better deals? Hardly the case. Short of me bringing my lawn chair, tv and some beer, I go there for amusement purposes only. There is an auction company that is starting to do ALOT of REO’s in my area.
REO’s are taking away the listings from realtors and selling them via auction. You would not believe how much they are getting for these things. The create such a buzz and excitement at these things that people way over pay, investors and owner occs. I’m quite amusing and people are buying horrible deals. I’ve seen it with my own eyes where investors get caught up in the bidding war and just pay WAY to much.
The Auction company (Williams and Williams out of Tulsa) will advertise the house and they get numbers man! Usually 30-40 people are at these things thinking they are gonna get a smoking deal cause its a REO and its at an auction. Sometimes…sometimes you can get a good deal. Few and far between from what I’m seeing.
Nate-WI
I experienced this last summer. I found a REO that was listed for 59K. It had recently been rehabbed and was in good condition, but the basement had about 2ft of water and the house was in a crappy neighborhood. Maybe worth 70K ARV. I offered 42K and after 2wks went by, my offer was rejected.
Approx. 2 wks later, I was reviewing thedirectoriescompany.com website and noticed the house was no longer listed w/ a realtor but was listed with W&W. On the day of the auction, the street the house was on was lined with cars. I didn’t need the house that bad so I kept on going. A few days later, I was on W&W website and learned the house “sold” for 44K at auction.
Shortly after that, I was looking at some REO listings and the house was listed once again w/ the same realtor as before for 59K. I’m not sure how much it sold for ultimately, as I had already lost interest. The bank was M&T and I’m in NY.