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Find a Bank REO!

MJ DeMarco

I followed the science; all I found was money.
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ChrisS417

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Pardon my ignorance, but how difficult is it to buy REO properties? Will banks finance the purchase of these or is it a cash only type of thing?

I just found a four family in my area the bank is selling for 89,400 and the last buyer paid 139,000. Would love to snatch this one up!
 

reipro

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It just depends, how long it has been on the market, who the bank is, are they near there FDIC Max of REO propeties and bad debt? Do your reserch and make an offer on the propety the worst that can happen is they say no. The best that could happen is they say yes and you get a good deal.
 
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andviv

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Thanks for reporting this.
User has been banned for two weeks. If hummer1414 does the same again he will be banned permanently. The only reason I did not banned him permanently was because he registered a couple of days ago and had not posted spam right away. Others register and start spamming right away, so we ban them for good. Benefit of the doubt for now...
 
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MJ DeMarco

I followed the science; all I found was money.
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tax deed , pre foreclosure, FSBO are must sell properties.....

Advertise all your properties without paynig any dimm...

helping you in:hurray: fast selling your property US nationwide
WITHOUT ANY SIGN up
LIST ALL YOUR PROPERTIES IN SECONDS
--link removed by Moderator. Reason: SPAM

I banned him forever. He's a spammer. The spammer

1) Uses a yahoo acct.
2) Signs up at multiple forums all at once (might take a few days)
3) Verifies email all at once
4) Spams all at once to achieve maximum impact.
 

Bilgefisher

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MJ,

I have spent the better part of a day looking over deals available with countrywide alone. Simply amazing. Thank you for these links.
 

Antonio.

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Thank you for posting this MJ!!! Actually I was in the middle of calling around to banks to acquire these listings. Thanks again

Antonio_O
 

Bilgefisher

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venom

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Once you go to those websites you can then follow it up by seeing which realtors list those homes.
You can also have your own realtor run a list from their mls. Their part has a lot more information. Like if the home is occupied. How long its been listed etc.
Rob
 
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bosco

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Some really valuable information here. Thanks for sharing this!

I have a question though... Once you've located a property that interests you...what are your options? Are the prices listed negotiable? can you asume the notes or do you have to secure a new mortgage? Is the process similar to purchasing a regular listing or is there additional steps? Are you delaing directly with a bank or a real estate agent?

Thanks
 

Yankees338

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Some really valuable information here. Thanks for sharing this!

I have a question though... Once you've located a property that interests you...what are your options? Are the prices listed negotiable? can you asume the notes or do you have to secure a new mortgage? Is the process similar to purchasing a regular listing or is there additional steps? Are you delaing directly with a bank or a real estate agent?

Thanks
Good questions. Rep+++

Anybody have the answers to this? Just wanted to give it a bump-a-roo...
 
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imirza

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You'll be dealing with a real estate agent. You make an offer and they will take it to the bank. The banks can counteroffer. You can try to contact the banks directly and reach their REO department. Keep in mind that most banks don't have REO departments. REO is a 'dirty' word. They prefer calling it by other names. I know Countrywide calls it the Real Estate Marketing department LOL . :smx2:
 

tbsells

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You deal with an agent. You can have your own buyers agent or deal directly with the the listing agent. Its very unusual for an REO company to deal directly with a buyer. This just don't want to do it. The process is similar to any to any other purchase except the entire process is titlted in favor of the seller. You can make an offer with a 24 hour expiration and they still may take a week to respond. Sometimes when a property is just listed they will wait 10 days before acting on any offer to see if others come in. There is usually an addendum to the contract that is very much in the sellers favor. It can be frustrating if you let it be. Once you've been through it a few times you just make your offer and wait to see what they say. You can't assume financing. By the time it gets to this point the previous loan has already been foreclosed upon. Get approved for financing before making an offer. They will usually not even consider your offer without it. You rarely get the opportunity to do a full inspection because the utilities are turned off. Offer accordingly. You have to have some "wiggle room" in your deal in case of unexpected expenses such as bad water heater, frozen pipes, etc. There is potentially alot of money to be made buying these, but be careful not all REO's are deals. In fact most are overpriced currently in my area and have been for a year or so.
 

phlgirl

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  • Feel free to make extremely low bids - we often make offers at 20-30% below listing price
  • Expect to be required to either show proof of funds (cash purchase) or pre-approval for financing
  • Expect to wait
  • Expect to take the property as-is (which means you need to bring your own contractors, when viewing the property)
If you know your product and your costs, there are amazing deals to be had right now. You must be persistant and patient. Every deal might not work out but, if you keep at it & make a few offers, it is likely that one of them will come through.

We are seeing an increase in the volume of deals - at deeper discounts & in better neighborhoods. The issue, for us, right now is the back end financing.

If has become more & more difficult to find a program which allows stated, cash out refi, based on appraised value, 70-75% LTV, with no seasoning requirements. If you don't need any cash out, and have decent credit, you should have no problem finding financing at great rates (up to 10 properties per individual).

Know your market and be reasonably cautious.
 
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Bilgefisher

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  • Feel free to make extremely low bids - we often make offers at 20-30% below listing price
  • Expect to be required to either show proof of funds (cash purchase) or pre-approval for financing
  • Expect to wait
  • Expect to take the property as-is (which means you need to bring your own contractors, when viewing the property)
If you know your product and your costs, there are amazing deals to be had right now. You must be persistant and patient. Every deal might not work out but, if you keep at it & make a few offers, it is likely that one of them will come through.

We are seeing an increase in the volume of deals - at deeper discounts & in better neighborhoods. The issue, for us, right now is the back end financing.

If has become more & more difficult to find a program which allows stated, cash out refi, based on appraised value, 70-75% LTV, with no seasoning requirements. If you don't need any cash out, and have decent credit, you should have no problem finding financing at great rates (up to 10 properties per individual).

Know your market and be reasonably cautious.


What is your success ratio on Bank REO? My partner and I recently went through a list of around 150-200 bank reo and looked at a dozen or so. Anything with any equity that we saw usually had a laundry list of problems to go with it. I'm not discouraged, just don't want to waste effort either.
 

phlgirl

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What is your success ratio on Bank REO? My partner and I recently went through a list of around 150-200 bank reo and looked at a dozen or so. Anything with any equity that we saw usually had a laundry list of problems to go with it. I'm not discouraged, just don't want to waste effort either.


To be conservative, I would say that we lock up at least one in every three offers?

We offer cash and the ability to close in 7 days (which rarely ever happens, due to the pace of the banks....but they love to hear it). We also make the realtor completely aware of the estimated cost of repairs and ask that they communicate this to the seller. We want them to know that we have done our homework are serious buyers.

You are right.... there are always problems. Just factor them into the cost (tack on another 20% for buffer) and offer accordingly.

We try not to pay too much attention to the listing price. We focus on figuring out where we need the price to be, if we like the area/rent potential and how to make the offer as attractive as possible. The banks want these things to go away - if you make it easy enough for them, most will work with you.
 

andviv

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I'm not discouraged, just don't want to waste effort either.

Maybe you should see this as a learning process.
I don't think it is a wasted effort. Call it 'practice' sessions if you will, but don't see it that way.
Do you really want to be going through this process for the first time for the 'real deal' that you finally found?

My suggestion would be to pick the top three from the list, and then make low ball offers. Discount all those laundry-list-of-problems from your already low offer and see what they say. If they say NO? big deal... you were already at NO to begin with.

You can afford to be picky and choosy these days in most markets, although I do recall you said that your area was not going down the same as the rest of the country, correct?
 
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tbsells

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Maybe you should see this as a learning process.
I don't think it is a wasted effort. Call it 'practice' sessions if you will, but don't see it that way.
Do you really want to be going through this process for the first time for the 'real deal' that you finally found?

This is good advice. "Practice" is essential for success in anything you do. (I think that's why my kids play soccer year round) Seriously, each time you go through this process you learn a little more and become a little better at it. Experience is the best teacher in this case.
 

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