This is my first post although I have read quite a few of them. My question is, I had several offers put into banks for shortsales last summer but they were all rejected. The major reason was the BPO or appraised value was not close to the comps that I pulled off the MLS ( my dad is a broker), therefor our offers were to low. Since then, I have managed rehabs that I find off the MLS or through assignment from other investors. Our average profit after rehab is $20K but unfortunately I dont get to keep it all since the funding comes from my dad or other investors. I want to get back into short sales since there is really no limit to how many you can do unlike rehabs which are limited by cash. Now to the real questions?
Has anyone had success with certain banks for shortsales versus others?
Are there any banks to not even try to do a short sale with?
I have seen some properties that are listed on the MLS that are bank owned for at least two years, has anyone had success at putting in major discounted offers on these properties and having the offers accepted? If so, which banks?
I appreciate in advance everyone that will take the time to reply to this even though there is no monetary reward. I have not seen many industries like this were total strangers will give free advice and help others by doing so. Thanks, Brian
I tried a short sale or payoff if you will and the bank did their appraisal thing and said I was too low. I agreed to pay the original loan amount plus the taxes they had paid for 4 years. They ended up foreclosing and selling it for less than my offer several months after the foreclosure. I hate short sales. I had rather deal with REO deals.
Some banks will not accept offers from individual investors, but since your dad is a broker, should be no problem.
Timing is everything. If it is near the end of a financial quarter, or year, for the bank, they sometimes get agressive. They don’t want inventory to show up on the report.
As far as I know, all nationwide institutions use agents to list their REO’s. If you become known to these agents, you can get a call before the listing becomes active, but the agent will usually go ahead and list the property on the MLS, even if only for 1 day. (may have something to do with the commission structure?)
Local banks may have some REO’s, but they are getting fewer and fewer. Most sell the mortgage to a servicer. If you check the foreclosure listings, you can see who the foreclosing bank is…if you see a local bank or mortgage co. as the foreclosing party, contact them…they will have others.
I think most/all of the major asset management/banks use agents to list their REOs. If you find the agents in your area that handle most of the REOs (and show that you can make a deal happen), they may be willing to give you a heads up when something is about to be listed. In my experience, I have had to fax a copy of the actual MLS listing to the lender rep on day 1 of the listing as part of my listing agreement. If I don’t do that, I may not get paid, so my REO listings are always going to hit the MLS. Also, if the property is “hot”, most banks will want it to be listed for at least a few days in order to encourage multiple offers. Good luck.