REO PROPERTY! NEED TO MAKE AN OFFER?

Foreclosures, Short Sales, Tax Foreclosures
1

New to the real estate investing world and need some advise. I know of a property that is now REO. I have contacted the HO and she is very motivated. I have already spoken with the bank and they said to make them an offer. Since the property was taken back by the bank, do I need the approval of the HO or just put in the offer. This will be my first deal and I am really excited.

Thanks. :help

2

If the property is REO then that means the bank has already foreclosed on it. The homeowner is long gone and has nothing to do with selling this property. If you are already working with an agent make an offer or call the listing agent and make an offer through them. Good luck!

3

So… the offer to the bank should include the cover letter, Comps, contract, and net sheet? What do I need to submit an offter?

Thanks. :help

4

Jared’s right. It’s just another resale now, so you’d do the same thing as you would if you were going to try and buy any other house. Either get yourself a buyer’s agent to work the deal through, or submit an offer directly to the selling agent.

5

Is the home listed with a realtor? To make an offer with a realtor you need to get with that realtor and they have all the forms.

Or are you attempting a short sale?

Sound pretty shaky to me. Are you sure your ready to make an offer?

6

Yes, I am attempting a short sale. The bank gave me the REO broker that’s handling this property. Pretty sure about making a offer, just want it done properly.

7

Short sales happen before the bank takes back the house. When it is already taken back it is called an REO, aka bank owned. It is too late for a short sale, all you can do now is make an offer to purchase it from them like you would purchase any other home. Get an agent to help you out or call the listing agent and work with them. Your best bet is to get your own agent since the commission will still be the same whether you have your own agent or not.

8

Pretty much the most you can do now is make a low ball offer.

9

Call the listing Broker. But, I doubt you will get anywhere unitl the seller places a listing value on the property. Ask the listing Broker if they have done their BPO yet? You will more than likely have to wait until they put a price on it.

10

I have spoken to both bank and the listing agent and she stated that they have not listed the poperty yet. They said that the property was not vacant, but I know it is. The bank asked if I new the previous owner and if I could have her contact them to verify if the property is indeed vacant so that it could be listed. Also, since REO’s aren’t assignable how can I get paid! The is a VERY GOOD deal! So what should I do now?

Thanks for all of the ADVICE!!

11

What should you do now? Get educated!!! “I have spoken to the bank and the listing agent and she stated that they have not listed the property yet”. How can there be a listing agent if the property is not listed??? Contact the previous owner to verify the property is vacant so it can be listed??? WHAT??? REO’s aren’t assignable so how can you get paid? Come on skye…

Here is what you should do now. Read. After that you should read some more. Then… guess what? Read. You clearly have no idea about rei at this point. Before you make a huge mistake and lose your a$$, get educated please. Thanks and have a GREAT day!

12

Harsh but true.

You’re getting into a frenzy without fully knowing how to execute the deal. You definitely need to do some reading here and look at options for REOs. I don’t even see how you can tell its a good deal if its not listed, how do you know the price if its not for sale yet?

13

First if its REO (Real Estate Owned) then the bank already owns it. Don’t waste your time with the PREVIOUS owner or their so-called listing broker. To determine if it is in fact REO go to the Registry of Deeds or Land Court in your county and find out on your own. DO NOT DEAL WITH A PREVIOUS OWNER OR A BROKER WHO DOES NOT HAVE A CONTRACT TO SELL THE HOUSE.

If it is NOT REO then determine what stage of foreclosure it is in. If the person that you know as the owner is still the owner then you deal with them and perhaps attempt a short sale with the lender. Unless a broker has a contract on the property don’t waste your time with them, they are only looking to collect a commission.

Bottom line is you need to research the property for yourself. The broker, lender and foreclosed upon party do not have your interests at hand and will tell you what benefits their own interests. FOLLOW THE PAPER TRAIL AND THEN THE MONEY - DO YOUR DUE DILLIGENCE.

Also, its not up to you to help the bank determine anything about the property. They are not going to be nice to you when it comes time to sell/buy because you helped them determing the properties vacancy.

14

Maybe I asked a question that gave the impression that I have not read or haven’t gain ample amount of info in regards to REI. Eduacted- very much so! I have spoke with the agent myself. I will wait until the property is indeed listed! I have followed the paper trail since August, but the deal was presented to me to late to do a short sale. The property is located in DC in a great location. Just thought is would be a good deal. KEEP IT HARSH- I LOVE IT!!!

:biggrin

15

I’d say this would be the statement that gives everyone the impression that you are not educated enough yet. The first thing you should learn in any business is how you get paid. If you don’t know that, you will get taken advantage of.

Good Luck on the deal!

16

Put it under contract, go to your local reiclub with pictures with circles and arrows and a paragraphon the back of each one explaining what each one is about and get a contract on it as though you own it and close on it twice in the same day.Im not saying this is not walking the legal tightrope, Im just throwing out ideas.