REO spreadsheet

Foreclosures, Short Sales, Tax Foreclosures
1

Does anyone have a good REO spreadsheet they have that they would be willing to share?

I keep hearing about them as great sheets to submit with SS packets to show foreclosure and REO costs, but can’t seem to find one unless you pay some guru a lot of money.

Thanks guys,

Joshua

2

You might be able to do one yourself. You can figure out how long it would take the lender to sell based on comps. The lender still pays interest on the note, still pays HO insurance. Take into account some fix up costs, attorney’s fees, RE Commissions. Subtract all of that from the sales price & you can get a “net” to the lender based on an REO.

3

What is a good guestimate of attorney’s fees? I am sure they vary depending on the property location and size and difficulty of the foreclosure process?

If anyone else has a REO Net Sheet already, I would appreciate a peek at that as well.

Thanks for your insights rgchamb…

I just try and learn every day,

~joshua

4

Just to offer some detail. When the lender takes the property back through foreclosure the original note is extinguished and the lender will write the property down to current fair market value. Their cost of holding the property can be calculated on a daily basis using their cost of funds (typically less than retail interest rates) then throw in the lump sum expenses such as attorney’s fees, insurance, homeowner’s assoc fees, r/e commission, clean-up costs etc…

5

HA HA,

Finally googling paid off…

So here is the link to a Freddie Mac form that on page 5-6 outlines all the various fees that could be associated with foreclosure and holding costs.

It looks pretty thorough (sp?). Now I have to find a way to program an excel spreadsheet that takes into account all these fees and can spit out a hard number for the bank to look at.

I figured I would share as maybe someone else already has a working REO spreadsheet and this would help them…

If anyone else can offer commentary or show us an REO spreadsheet example, please do!

http://www.freddiemac.com/multifamily/mf_forms/pdf/f104.pdf

Thanks for reading,

~joshua

6

Any lender/servicer you are dealing with already knows what their holding and liquidation costs are going to be; they will ignore your spreadsheet. Your best bet is to provide well documented information about the condition and value of the property, market statistics, etc.

7

swgprop makes a good point. you’re not going to tell the lender anything they don’t already know about their holding costs. what you can bring to the table though is knowledge of the property, its condition and needed repairs, neighborhood sales activity and trends.

8

But wouldn’t you say that if you lay out those costs for them, then they would take you more seriously knowing that you based your offer understanding that you are going to “beat” their net from going through the foreclosure/REO process?

That is the reason I want to have a solid REO spreadsheet.

9

Sure having a complete cost analysis is the way to go but realize that your estimates of their holding costs could be way off. So just go into it with that in mind and refine those variables as you learn more about the lenders you deal with.