I am a newbie try to make deal on REO in MD.
I went to see about 50 houses. Almost all of them has Mold. Do any rehab investor would buy thoses houses?
When make offer to the bank on REO, someone told me that do not put any condition on the offer in order to get accepted, true or false?
Can I ask the Bank to pay closing cost?
Any suggestion is realy appreciate? Thank you in advance. I like your guys.
We live in an area where mold isn’t generally a problem. However, we have run into two cases of mold. As long as we are certain that it is localized and can be corrected due to a water leak, we don’t consider it a huge problem.
We have found that making the offer conditional on an inspection is acceptable, and that some banks are willing to make corrections. Yes, the bank will pay closing costs, but you may be limited as to how much your bank will accept in closing costs. Our bank limits the seller to 2 percent in closing costs.
Thank you so much, Gilberttribe.
WanWan,
I actually just lost an offer on an REO today :crying2 but hopefully this will help. It was a rehab property that needed approx 10k of work (roof for house/ detached garage and mostly cosmetics) but also had mold. the asking price was 53k and I went at it with 58k, a 1k deposit for show, and preliminary estimates to justify the work in my offer. I also had proof of financing. The house had a severe roof leak that went to the downstairs unit and down to the basement through the floors/walls leading to a heavy mold problem. My offer asked for NO concessions from the bank for mold remidiation, NO assistance with closing and basically NO money from them whatsoever.
I was beat out by an offer for 68k asking for 5k from the bank for closing and 4k for mold remediation. When you do the math my offer costs them MUCH LESS (as its more or less $0). :bs
Moral of the story: Banks are stupid, it may help you to not ask but don’t shortchange yourself to make the deal work. If the condition protects you, put it on.
BTW: I’m trying to do buy & holds these days so mold to me (as long as its not Black “I think I’m gonna die” Mold) is not a problem. Most basements in my area have it-Buffalo, NY
Hi, I saw a lot of property damage just like the one you talk about in MD. :banghead. I made an offer at 50C. to a dollar. I have not get any accept yet. I am trying to flip it. Do you have to pay for the house first and then you turn around sell to another investor? I am not planning to hold it. Are you interesting in buy and hold in MD, VA, if you do next time when I have cheap deal I will contact you? :smile