no I heard its when you develop a relationship with the lender and they sale you the stuff the didn't sell in foreclosure for pennies on the dollar Before they put it on there books to quickly move inventory but does anyone know how to execute it. It suppose to be an alternative to a short sale
I can see it now late night real estate goobers teaching the art of Pre REO.
Let me get a little serious now about Pre REO:
Pre simply means before and REO means real estate owned.
You said "I heard its when you develop a relationship with the lender and they sale you the stuff the didn't sell in foreclosure for pennies on the dollar Before they put it on there books to quickly move inventory"
My answer to this is simply lenders can not sell you property they have not foreclosed on since they do not own the property. This type of transaction would bring us back to the pre depression era where lenders would take property back without proper due recourse and a foreclosure proceeding. This is why foreclosure laws were enacted since the post depression era.
Lenders have no choice but to document a bad note.
There is no alternative to a short sale! When you ask a lender to take a discount on their subject investment it is still a short sale no matter how you slice it.
The key phrase is pennies on the dollar, Yep it's a real estate goober teaching how to get rich overnight in real estate.
[addsig]
John Michael,
I was curious after reading these posts. Is it possible to develop a relationship with the lender and have them call you first after they take the property back and before they make it available to the masses? I don't know if that would violate any laws.
Yes you can for a relationship with lenders and get first opportunity on properties that they have foreclosed on. This can be a timely process but worth the time and effort.
You will also want to build a relationship with the realtor and or broker that the lending institution uses to list their bank owned properties.
Keep in mind that lenders only want to deal with investors who have the funds to purchase their properties so a letter of credit goes a long way with them.
As your relationship builds and they see you as a "true player in investing" leads will come when their customer is only 60 or 90 days delinquent.
When they reveal a customer who is delinquent they do violate federal disclosure laws and one must protect the confidentially of the source at all cost.
[addsig]
Pre REO means just that, before the lender owns the property. Until that point all sale transactions must go through the owners not the bank. It is possible to develop relationships with lenders about REO listings but you are competing with hundreds of Professional realtors who want the REO listing for their own for commission. Banks are more prone to deal with the Professional realtor because it is a safer alternative for them, as they know the realtors have investors to buy these REOS and are licensed to do it. Besides the realtor will list for a higher price than that of what an investor will offer in most
cases because the commission is soley based on the amount of the sales price. Bigger sales price bigger commission. Bigger sales price, more consistant REO listings from lender.
In states with post-foreclosure redemption periods, there is a point between the foreclosure stage and REO stage where you have a chance to buy the property. You can even buy it out from under another investor who bought it at the Sheriff's/Trustee's Sale. You have to find the (former) owner, convince them to quitclaim you their interest ($$ works nicely for this), then redeem it and pay off the foreclosure amount to the bank or other investor. Sometimes--far from always--this could result in a good deal. Typically you'll need lots of cash to do it, since it's tough to borrow against redemption www.rights.I'm sure someone's made money this way, though.
Pre reo just refers to the time period before the bank owns the property.
This is also called pre-foreclosure.
no I heard its when you develop a relationship with the lender and they sale you the stuff the didn't sell in foreclosure for pennies on the dollar Before they put it on there books to quickly move inventory but does anyone know how to execute it. It suppose to be an alternative to a short sale
I just love this one Pre REO.
I can see it now late night real estate goobers teaching the art of Pre REO.
Let me get a little serious now about Pre REO:
Pre simply means before and REO means real estate owned.
You said "I heard its when you develop a relationship with the lender and they sale you the stuff the didn't sell in foreclosure for pennies on the dollar Before they put it on there books to quickly move inventory"
My answer to this is simply lenders can not sell you property they have not foreclosed on since they do not own the property. This type of transaction would bring us back to the pre depression era where lenders would take property back without proper due recourse and a foreclosure proceeding. This is why foreclosure laws were enacted since the post depression era.
Lenders have no choice but to document a bad note.
There is no alternative to a short sale! When you ask a lender to take a discount on their subject investment it is still a short sale no matter how you slice it.
The key phrase is pennies on the dollar, Yep it's a real estate goober teaching how to get rich overnight in real estate.
[addsig]
John Michael,
I was curious after reading these posts. Is it possible to develop a relationship with the lender and have them call you first after they take the property back and before they make it available to the masses? I don't know if that would violate any laws.
Yes you can for a relationship with lenders and get first opportunity on properties that they have foreclosed on. This can be a timely process but worth the time and effort.
You will also want to build a relationship with the realtor and or broker that the lending institution uses to list their bank owned properties.
Keep in mind that lenders only want to deal with investors who have the funds to purchase their properties so a letter of credit goes a long way with them.
As your relationship builds and they see you as a "true player in investing" leads will come when their customer is only 60 or 90 days delinquent.
When they reveal a customer who is delinquent they do violate federal disclosure laws and one must protect the confidentially of the source at all cost.
[addsig]
So what should I say to establish this relationship
Pre REO means just that, before the lender owns the property. Until that point all sale transactions must go through the owners not the bank. It is possible to develop relationships with lenders about REO listings but you are competing with hundreds of Professional realtors who want the REO listing for their own for commission. Banks are more prone to deal with the Professional realtor because it is a safer alternative for them, as they know the realtors have investors to buy these REOS and are licensed to do it. Besides the realtor will list for a higher price than that of what an investor will offer in most
cases because the commission is soley based on the amount of the sales price. Bigger sales price bigger commission. Bigger sales price, more consistant REO listings from lender.
dl will
[addsig]
In states with post-foreclosure redemption periods, there is a point between the foreclosure stage and REO stage where you have a chance to buy the property. You can even buy it out from under another investor who bought it at the Sheriff's/Trustee's Sale. You have to find the (former) owner, convince them to quitclaim you their interest ($$ works nicely for this), then redeem it and pay off the foreclosure amount to the bank or other investor. Sometimes--far from always--this could result in a good deal. Typically you'll need lots of cash to do it, since it's tough to borrow against redemption www.rights.I'm sure someone's made money this way, though.
you guys are close but no cigar john michael is very close but I believc there is something we a re leaving out I am going to order this course.