The initial conversation when buying a REO

Foreclosures, Short Sales, Tax Foreclosures
1

Hello everyone.

I’m new to this forum but I made sure to read all the relavent posts [and other articles] about foreclosure before posting so I don’t seem like a lazy guy who’s leeching for answers.

Basically, I found a REO. I know who the lender is. I know what price to offer. And I have the pre-approved letter to get the deal done quick.

I know I’m supposed to call the bank and ask to talk to the top person that can make the ultimate decision of selling the REO to tell him I have the cash to get the deal done. The problem is, I’ve never done it before so I do not know how to begin.

Nevertheless, there’s only one way to learn and that’s to do it. I called in today and asked to talk to the mortgage department. They asked “if there is anything they can ask me with.” I told them that I know a property that is in foreclosure and the lender is them. How do I come about buying the house? They said they only do loans. I asked them how do I come about buying the loan. They said they’re not selling loans and they will work hard with the person in foreclosure to try to solve the situation. Basically, I’m not getting anywhere with the lender.

So my question for the experienced foreclosure buyer, what do you say when you first call in? “I know a person in foreclosure and it happens that the lender is you and I want to buy that house. What can I do to make that happen?” That seems good in my head but I do not know if it is correct.

Thank you.

2

REO Means Real Estate Owned - The property has already went to auction and is listed by a realtor or the bank is trying to sell it themselves (only smaller local banks). Most of the time it is listed with a realtor. (Call the listing agent) Your lender can probably put you in touch with a good agent if you do not want to use the listing agent. Better yet if you lender knew what you were buying and did not tell you this you might want to find a different lender…. Sorry just a thought. :biggrin

If the person is in foreclosure (pre foreclosure) then you must talk to the home owner and get their written permission to talk to the bank. Then don’t talk to the top person. Fax in your authorization to release information. Then read many books on short sales. Post your questions here and cross your fingers and you just might pull it off.

Hope this helps :biggrin

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iaow – No offense but I think you need to do a lot more reading.