Purchasing REO Properties

Comments(13)

• 
  tinman175517th February, 2004

  Banks change the price when no one bites on the house. I've seen properties reduced. But you can put a bid in on the house for any amount. I know a friend who put a bid in every week until the bank accepted it. He did lose on a different house by doing that. If I was you I would bid The highest that you want to spend. If it is accepted you win. If not move on, look for another.
  
  Good Luck
  
  Lori
  [addsig]

• 
  mrtrim117th February, 2004

  Like you said that is just a asking ****Must Reach Freshman Investor status before posting URL's***f they have had it for at least 60 days I would offer half the asking price. You might be suprised what they counter with. By law the realtor has to summit your offer, most of them are good to work with because they get a flat fee when the house sells.So it does not matter to them how much it sells for!!GOOD LUCK!!

• 
  homeinvestor18th February, 2004

  What is your exit strategy for this type of investment?
  [addsig]

• 
  JohnCl18th February, 2004

  mrtrim1,
  
  I did not know that. Great information!
  
  homeinvestor,
  Preffered exit strategy is fix it up and Lease Option it. I would also consider wholesaling it.
  
  JohnCl

• 
  JohnCl18th February, 2004

  Lori,
  
  This one has only been on the market for 16 days. Countrywide Mortgage is the seller.
  
  JohnCl

• 
  tinman175518th February, 2004

  Did you look at the house and assess the damage?
  
  Is it in a BAD area?
  Is it in a nice area?
  Is it a keeper or a fipper?
  Is the area increasing or decreasing in value?
  
  These are are questions I research when looking at a property.
  
  And many more
  
  Lori
  [addsig]

• 
  rajwarrior18th February, 2004

  There are really no ryhme or reason that lenders accept what they accept for each property. Depending on the lender's particular situation that day, they may accept an offer or not. I've offered the same lender the same % discount on multiple properties and they'll accept one and totally reject the other. There is no gain in trying to determine "if they'll accept an offer." Simply make an offer and it'll either get accepted, rejected, or countered.
  
  I will say that unless your offer is reasonably close to what they expected to get out of the property (not necessarily the asking price, btw), you will get a counter. So offering you top bid off the bat is probably a bad idea. You'll also, either right or wrong, always have that nagging feeling that you could have paid less, if they accept your offer without a counter.
  
  Using your figures, you're only off by your repair estimate of $10K. So, here's the way I'd expect it to go.
  
  You offer about $85K, they'll probably counter at about $90K. You could accept it here (it's close), or counter again at $87 or so. At that point, the lender will usually either accept or reject. IF they counter, you can bet that it's the bottom line.
  
  Roger

• 
  omega118th February, 2004

  Based on what you've sad, if you go with the bank's asking price you'll still make about $15K or a bit more. What's wrong with that?

• 
  InActive_Account18th February, 2004

  I like to make my offer every monday morning. Just keep submitting the same offer until they accept it or sell to someone else. I have had offers accepted for less than half the asking price and some near asking price that were rejected.

• 
  MOBILEHOME200418th February, 2004

  Hello,
  Can you please explain where you are finding these houses your bidding on?

• 
  m_anderson_10119th February, 2004

  MOBULEHOME2004:
  If you are referring to REO's(real estate owned by a bank) you can very often goto a lenders website and with some digging around find where they offer a list of the properties they have taken back in foreclosure.(but not all)
  
  Countrywide(as mentioned above) has a a website and is fairly easy to locate through doing a "google" search online. Once on the website, its fairly easy to navigate to where you will find there REO listings.
  You chould aslo be able to find any and all contact info there regarding making your offer on one .......or all <IMG SRC="images/forum/smilies/icon_biggrin.gif"> .......of there properties being offered for sale. <IMG SRC="images/forum/smilies/icon_wink.gif">
  
  good luck [ Edited by m_anderson_101 on Date 02/19/2004 ]

• 
  JohnCl19th February, 2004

  Oh Well. I snoozed, I lost. Under contract with a backup buyer in place. Both cash, over list price. Nexxxt!
  
  How do you get good pre-foreclosure lists?
  
  JohnCl

• 
  JohnCl19th February, 2004

  mobilehome2004,
  
  That lead was from www.foreclosure.com
  
  JohnCl