Sham718 gave a good response to your questions. But a couple of other things to keep in mind…
The bank may not respond immediately to your offer. They may sit on it for a while to see what else comes in. And I’ve seen them raise the asking price after getting a few offers. The other thing to ask yourself is, if it’s an REO why didn’t it sell at auction? Just make sure you’re not missing anything.
Thank you for your replies. In my county it is not unusual for a property to not sell at auction especially if it is not a high end house. Houses in the moderate to low end are usually bought back by the bank. I have bought two at the courthouse for rentals and there was no one else there bidding, but the job keeps me from doing this all the time, that is why I wanted to be able to deal with bank directly and not the RE agent.
Read these books.
Making Big Money Investing in Foreclosures : Without Cash or Credit by Peter Conti, David Finkel
Preforeclosure Investor kit by Thomas Lucier
Both great reading.
Thanks,
Nate
[addsig]
Nate thanks so much for your response!!!
Does no one here know how the listing price is determined in REO?
Sham718 gave a good response to your questions. But a couple of other things to keep in mind…
The bank may not respond immediately to your offer. They may sit on it for a while to see what else comes in. And I’ve seen them raise the asking price after getting a few offers. The other thing to ask yourself is, if it’s an REO why didn’t it sell at auction? Just make sure you’re not missing anything.
Thank you for your replies. In my county it is not unusual for a property to not sell at auction especially if it is not a high end house. Houses in the moderate to low end are usually bought back by the bank. I have bought two at the courthouse for rentals and there was no one else there bidding, but the job keeps me from doing this all the time, that is why I wanted to be able to deal with bank directly and not the RE agent.