Financing Bank Owned Properties
I have some REOs that I am looking to purchase directly from the Bank not throught a real estate broker. I have never purchased properties directly from the bank before. Do they normally require all cash or are they willing to lend on properties that they are looking to sell off their books? Any advice would be greatly appreciated. :-? [ Edited by fancyyounginvestor on Date 05/19/2004 ]
My experience is that they want new money to come to the table. But my experience is very limited. Anyone?
JohnCl
I know people who finance REOs. Only certain banks will do it I hear.
Hi,
Thanks for the responses but it seems like they want me to carry my own financing
Wow, a bank that won't finance their own REO. This is not a good sign. This means there is something wrong with the property that you are not aware of.
I have said this to people before. I have also said this to people when I don't find them to be a qualifying candidate for financing, I just tell them, we don't finance our REO's take it somewhere else.
You know whats funny is, if you did get financing somewhere else, and then if you refinanced back with the original foreclosing lender, they would never even know...so its kind of a stupid thing to say anyways
Foreclosure properties tend to recycle into foreclosure again. I see the same properties come back on the table over and over again. They could be anticipating the property coming back to them, and dont want to deal with it.
Find a small savings bank or credit union, Something mutually chartered/local. Find a bank that is a Portfolio lender, meaning they don;t sell your mortgage on the open market, it will always stay at the bank.. You'll find a loan officer there that likes to lend money to investors that do this kind of stuff. And on top of that, the loan officer would love for you to buy more properties and to continue financing these investment properties with them.
Its networking for you/and the loan officer build his portfolio at the same time
Thanks....That's a good idea.