Question about REO offers
I spoke with a real estate agent the other day that I may like to use to make bids on bank owned property. One of the first things I told her was that I intended to make alot of offers and that they would be well below the asking price.
She did not have a problem with that and commented that many times the banks are very slow in responding to offers thus making it difficult at best to make many offers.
Has anyone had similar dificulties or am I getting bad information? If you have had troubles with this, what are some good ways to get around it.
Thanks to anyone willing to spend their valuable time on a reply.
I have personally encountered banks that are slow with REO property offers. As for the agent remember that they hear all the time from investors who tell them they are going to make lots of offers or buy lots of houses from them and 99% dont, so actions speak louder then words in gaining trust and reliable information. I know that some banks send there REO properties to brokers specializing in liquidating REO properties. I have seen banks that have there own sales agreements in addition to those required in the state of the sale, and they are very picky about how they are filled out etc. My experience has been that it takes often two weeks or longer with some banks to even get the house on the market from the time it was foreclosed. So you could wait 3-4weeks total to get a counter offer or accepted offer.
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I have done a few deals with REO property and have found that the banks are generally quick to respond, 1 to 2 days at most. What takes an enormous amount of time is when M.I. is involved with the payoff. In one instance, once the first bank accepted, then it had to become accepted by the M.I. company which took about 1 week from start to end on a response.
I think it just depends on the situation and what bank is holding the property. Some banks are very efficient at getting the ball rolling, when others it seems like don't care to get it off of there books in a hurry.
I have done a little background checking on REO properties and have some questions. Other than identifying some realtors who handle these properties for the bank, is there any other way to get your hands on these properties. In other words, are you pretty much limited to dealing with a realtor, or are there other methods to deal with the bank directly before they list?