Though others may offer more details, you don't really need a manual. As a starting point, most REOs get listed with Realtors, and they are offered at fair market value (more or less), like any other Realtor property. Some REOs turn up on free websites like:
As far as buying them, there's not so much difference from buying any other property. Getting a bargain is a different story, and depends on your negotiating skills and strategy. Some can be bargains, esp. if they've been listed awhile at too high a price. The owner banks want them sold, since they're not in the business of holding properties. More and more, they're able to get market or near market values.
If you can find a REO in limbo that somehow didn't get Realtor listed, you might be able to approach the bank with a direct offer. You can make the rounds of local banks and ask about their inventory properties, or to be notified as soon as they get one; maybe they'll accept a pre-Realtor offer, but don't count on it.
Quote:
On 2004-07-08 19:13, wes1219 wrote:
does anyone know of any manual that explains that entire process of REO's & and how to purchase REO properties.
***I don't know of any manual but my office lists REOs all the time. In fact, we have a separate department for them. You just buy them like any other property, thru the Realtor. Sometimes the banks will renovate them and sometimes they won't. It really depends on the Realtor's market analysis and what they recommend. Sometimes the mortgage insurance companies will buy them, which has a way of distrupting everything :cry:
Most REO properties are listed through various real estage agents. HUD properties are listed through Golden Feather in most states. The process for each type is different. HUD has its own procedure, VA has its own contract and procedure, and most banks have huge addendums you have to sign when you submit your offer. If you're that new, I highly recommend purchasing your MLS-listed REOs with a knowlegable agent who can guide you through an entire process. Once you do it once or twice, it'll be much clearer - although it still amazes me how different the addendums from different banks look. For instance, today I got one from the Household, and it's the most lenient of the ones I've seen in a long time....
Banks are pretty smart generally when it comes to REO's. They get a realtor to give them some estimates and then decide if they will make the place 'move in' ready or more 'as is'.
Do not expect a great deal on REO's in that the bank will not want to dump it at a really low price. At least the ones that have an agent involved will not be dumped quickly at a steep discount.
Now, if you do get it for 10% less then market you are not exactly getting a bad deal. You just will not get rich over night with an REO.
Active is 100% correct. If you buy the RE books, they give the impression that banks want REO off their books, regardless of the price. And that is about as wrong as it can be.
With that said, Banks do lots of stupid things with REO and there are some good values out there. Generally, you have to find an REO that has been on the market for a while, has some problems with the house and be able to pay CASH.
Wes,
this is a good question and I see some good answers here.
This is how I find and buy REO properties. First contact a real estate agent in your area, tell him you want a list of all REO and forclosed property in your area within a price range that is comfortable for you. If you plan on buying distresed property, (as is.) You will most likely need to pay cash. Or get an investment mortgage broker to provide financing. Most banks and mortgage companies will not finance distressed property. Having pre-aranged financing is most important. If it's a good deal, it will not last long.
Though others may offer more details, you don't really need a manual. As a starting point, most REOs get listed with Realtors, and they are offered at fair market value (more or less), like any other Realtor property. Some REOs turn up on free websites like:
http://www.premierereo.com/consumerSvlt//nav/ConsumerNavL1.jsp/requestPage/consumer/PropertySearch.jsp ( I'm not affiliated with it just offer it as an example)
As far as buying them, there's not so much difference from buying any other property. Getting a bargain is a different story, and depends on your negotiating skills and strategy. Some can be bargains, esp. if they've been listed awhile at too high a price. The owner banks want them sold, since they're not in the business of holding properties. More and more, they're able to get market or near market values.
If you can find a REO in limbo that somehow didn't get Realtor listed, you might be able to approach the bank with a direct offer. You can make the rounds of local banks and ask about their inventory properties, or to be notified as soon as they get one; maybe they'll accept a pre-Realtor offer, but don't count on it.
Quote:
On 2004-07-08 19:13, wes1219 wrote:
does anyone know of any manual that explains that entire process of REO's & and how to purchase REO properties.
***I don't know of any manual but my office lists REOs all the time. In fact, we have a separate department for them. You just buy them like any other property, thru the Realtor. Sometimes the banks will renovate them and sometimes they won't. It really depends on the Realtor's market analysis and what they recommend. Sometimes the mortgage insurance companies will buy them, which has a way of distrupting everything :cry:
Most REO properties are listed through various real estage agents. HUD properties are listed through Golden Feather in most states. The process for each type is different. HUD has its own procedure, VA has its own contract and procedure, and most banks have huge addendums you have to sign when you submit your offer. If you're that new, I highly recommend purchasing your MLS-listed REOs with a knowlegable agent who can guide you through an entire process. Once you do it once or twice, it'll be much clearer - although it still amazes me how different the addendums from different banks look. For instance, today I got one from the Household, and it's the most lenient of the ones I've seen in a long time....
I was just wondering with the market being so hot i never really seen any great deals on REO's
Are there any real bargains on REO thats really below market value, since typically you see REO about 10% below market value and thats not much.
Banks are pretty smart generally when it comes to REO's. They get a realtor to give them some estimates and then decide if they will make the place 'move in' ready or more 'as is'.
Do not expect a great deal on REO's in that the bank will not want to dump it at a really low price. At least the ones that have an agent involved will not be dumped quickly at a steep discount.
Now, if you do get it for 10% less then market you are not exactly getting a bad deal. You just will not get rich over night with an REO.
John
[addsig]
Hey,
Active is 100% correct. If you buy the RE books, they give the impression that banks want REO off their books, regardless of the price. And that is about as wrong as it can be.
With that said, Banks do lots of stupid things with REO and there are some good values out there. Generally, you have to find an REO that has been on the market for a while, has some problems with the house and be able to pay CASH.
Wes,
this is a good question and I see some good answers here.
This is how I find and buy REO properties. First contact a real estate agent in your area, tell him you want a list of all REO and forclosed property in your area within a price range that is comfortable for you. If you plan on buying distresed property, (as is.) You will most likely need to pay cash. Or get an investment mortgage broker to provide financing. Most banks and mortgage companies will not finance distressed property. Having pre-aranged financing is most important. If it's a good deal, it will not last long.
askter taking a bth at the trustee sale you have seen back add money?
not in the CA market.