By the time it becomes a REO the bad debt has been writen off, so getting a great deal may be difficult unless...
Time on market has been long, or need a lot of repair. If you make offers remove all contengences, make an offer with a few thousand down (we offer $5,000)and no financing contengencies. You also will need a letter of approval from lender for the amount of the offer.
If your offer is rejected you get your money back and start over.
A REO Realtor gave us these tips and they have worked well. We have not made many offers on REOs lately.
Do your inspection of the property
Do not make offers on REOs in this way unless you know the property well.
Sire
If it is a local bank that is holding the REO's, here are some things that have worked for us.
What we would do first is to call into the bank for the REO department and ask who is the decision makers for the REO's. Once we get the right person, we will make a visit to the bank and ask to see this person. Ususally they are busy, but they will give you a few minutes of their time. We tell them that we are interested in purchasing REO's (of all conidtions), and we ask them what they have on the books right away. They usually want to know how we will be paying for the purchase and we say either cash or that w are already approved for a loan with ___________ bank.
One killer thing that we have learned is that we ask the banker "What he thinks about a particular property." Just last week a banker told us that a particular property is in TERRIBLE CONDITION, and that told us that he was ready to DEAL on this one just to get it off his books.
When making an offer to the banker to purchase, another thing that you can tell them is that if they accept your offer, that you will open up an account with them (or move your savings/checking account to thier bank) and/or place this amount of money in it $_______. They would rather sell to someone who is already doing business with them.
NOW ON THE FLIP SIDE, if it is an out of state bank that you are trying to buy an REO that they have locally, these will ususally be listed with a realtor. When placing offers on these, we make our first offer at a discount and move up from there if necessary. You just never know how much less a bank will take. Hope this helps!
Quote:
On 2003-03-26 18:51, TrinityProp wrote:
Do banks offer discounts if you are ready and willing to purchase for cash, quickly?
A bank wants money not houses. If there is a house on the books that limits there lending amounts. We only make offers on properties that have been on the market for a while. With the current ecconomy, they might discount for a "cash" offer. Just show that the funds cash/mortgage /line of credit are avalible now.
When we put money in escrow, if we do not follow through the bank keeps our deposit. This makes it tempting to take the risk of a low ball offer to the bank.
If we don't have the money or can not buy the house they keep my $5,000 but if I buy they take a big discount on a house they have been sitting on for 9 months.
It's worth the gamble.
Sire
By the time it becomes a REO the bad debt has been writen off, so getting a great deal may be difficult unless...
Time on market has been long, or need a lot of repair. If you make offers remove all contengences, make an offer with a few thousand down (we offer $5,000)and no financing contengencies. You also will need a letter of approval from lender for the amount of the offer.
If your offer is rejected you get your money back and start over.
A REO Realtor gave us these tips and they have worked well. We have not made many offers on REOs lately.
Do your inspection of the property
Do not make offers on REOs in this way unless you know the property well.
Sire
lafinancial,
If it is a local bank that is holding the REO's, here are some things that have worked for us.
What we would do first is to call into the bank for the REO department and ask who is the decision makers for the REO's. Once we get the right person, we will make a visit to the bank and ask to see this person. Ususally they are busy, but they will give you a few minutes of their time. We tell them that we are interested in purchasing REO's (of all conidtions), and we ask them what they have on the books right away. They usually want to know how we will be paying for the purchase and we say either cash or that w are already approved for a loan with ___________ bank.
One killer thing that we have learned is that we ask the banker "What he thinks about a particular property." Just last week a banker told us that a particular property is in TERRIBLE CONDITION, and that told us that he was ready to DEAL on this one just to get it off his books.
When making an offer to the banker to purchase, another thing that you can tell them is that if they accept your offer, that you will open up an account with them (or move your savings/checking account to thier bank) and/or place this amount of money in it $_______. They would rather sell to someone who is already doing business with them.
NOW ON THE FLIP SIDE, if it is an out of state bank that you are trying to buy an REO that they have locally, these will ususally be listed with a realtor. When placing offers on these, we make our first offer at a discount and move up from there if necessary. You just never know how much less a bank will take. Hope this helps!
Thanx for your input guys, will take this and run!!
Do banks offer discounts if you are ready and willing to purchase for cash, quickly?
Quote:
On 2003-03-26 18:51, TrinityProp wrote:
Do banks offer discounts if you are ready and willing to purchase for cash, quickly?
A bank wants money not houses. If there is a house on the books that limits there lending amounts. We only make offers on properties that have been on the market for a while. With the current ecconomy, they might discount for a "cash" offer. Just show that the funds cash/mortgage /line of credit are avalible now.
When we put money in escrow, if we do not follow through the bank keeps our deposit. This makes it tempting to take the risk of a low ball offer to the bank.
If we don't have the money or can not buy the house they keep my $5,000 but if I buy they take a big discount on a house they have been sitting on for 9 months.
It's worth the gamble.
Sire