What's Best Way Of Negotiating For Lender REOs?
Many foreclosure sales I've seen have no bidders except for the foreclosing lender (the lender's opening bid offers no bargain). In that case, the lender is the new owner. I've thought that the next time I see this happen on a property of interest I'll ask the selling trustee agent for the name of the lender with the idea of approaching that lender about taking a lessor amount for the property.
The fact that there were no other bidders should tell the lender that the property is fully priced at their bid amount. I understand that lenders are motivated to get REOs off the books.
I have seen a couple of weeks after such sales a real estate agency "for sale" sign go up in the yard. It would appear that if they could get a buyer before hiring a real estate agent they could reduce the commission expense (6%) off their earlier opening bid amount.
How is the best way of contacting the lender in a way that gets their attention?
How should a proposal be presented? How much of a reduced offer should be made?
Any experiences you've had would be interesting to hear about.
Larry
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