How Long Do Banks Usually Take...
before exepting or denying an offer (REO)?
I found a good opportunity on a place and made an offer on Friday.
Sellers RE says i`m the highest offer at this time.
Actually nobody wants to touch this place with a ten foot pole. Has been sitting for 3 months.
I~m thinking the bank wants to move it.. I know it`s got potential but lots of work and a gas mask for the mold..lol
You bring up an interesting side comment about mould. It is important that you get a mould inspection before you purchase. I could cost you mega bucks. Also, there could be an insurabiltiy issue here.
I bought a couple bank properties, I like buying from owners. Once I put a good offer on a house in a good town. I never heard back 18 months later I drove by it still wasn't sold.
So who knows?
I just got a counter offer within days of submitting my offer. The property had been on the market for about two months. Apparently they had received other offers but with contingincies that were unacceptable to them.
I have had responses within 24 hours on offers I have made.
Depends upon whether the bank is a large national lender with a consolidated REO department in some out of state location, or a local/regional lender that has the loss mitigation officer nearby.
I talked to a mold mitigation company and they said the worst case is gut the basement.. well I was going to do that anyway.
Guess I`ll wait and see what they come back with..
My advice is when dealing with REO's do what Ed Myer did on prior posting. Submit a clean and simple offer. No contingencies.
Remember you are dealing with Bank employees and having been one as a child, I have a rather low opinion of any organization that would have hired me.
Accordingly I do not expect much from them. REO is a scary department and most of the career bankers want to get out of there as quickly as possible. One mistake and there goes your career.
Best way to handle is I hand carry all my offers in. With the offer I have a full appraisal reflecting a view of the property through the eyes of a hungry contractor. Mold is so thick you could spread it and replace peanut butter. Etc. etc. etc
One of the officers out here working for a major bank with which I do a lot of business, is a gun freak. So I gave him as a reward for doing his job properly a Colt Single Action Pistol Cal 41, you know the one that won the west the one you can shoot by fanning the trigger. All matched numbers and dated 1874. Fully restored all polished and bright. This is the collectors gun, he cried, said he could not accept such a gift but you could not have pried it out of his hands with a crowbar.
Since that date if I express an interest in anything upcoming in foreclosure, I get a prior peek. At time of sale I can arrange a short bid as he instructs Trustee to call the sale short. I can even if I wanted to have them halt sale, postpone for a future date, so I have time to handle the other bidders therein assembled ready to bid. The Trustee at sale knows better then to tip my qualification amount. And on it goes. All for the price of a gun of which I have no use. I am a pacifist chicken investor.
All this I learned way back in the Roaring 50s and 60s The name of that sterling group of Real Estate Investors, "the Forty Thieves." Scions of Real Estate. Also known as the Hoods of Spring Street. on which was located Title Insurance and Trust Co. who back in them thar beknighted days handled 90% of all foreclosures.
This little historical briefing is merely to let you know that what you do now has been done many times before and at the end it boils down to you, just you knocking on the door. Someone opens that door, responds to your letter, reads your E.Mail, dates your sister, escorts your mother, steals your cat. They are all gist for you and your response is what starts the party. Enjoy the party.
Sniffing and signing. Lucius[ Edited by Lufos on Date 11/24/2003 ]
Lufos, I understand what you`re getting at.. BTW, I`m also a gun nut and that gun is worth a small fortune...
Anyway, I`m dealing with a realtor who is selling the property, I actually have no idea who the seller is as they are not willing to disclose that information at this stage.. ~im well aware that greasing the wheels makes the wheel go round.
Dear Stiffler,
You might call the title company, give them the address and they will supply you with the owner, then ask when owner bought and how much he paid. Gives you a position from which to bargain then you might see just how much tax he is going to pay and then knowing that perhaps you can work out a transaction in which he reduces the amount in exchange for the tax saving you can do for him. Perhaps he takes back a biggy second trust deed which you buy in 30 days at a discount. I am sure you can come up with some structures to reduce true price and reduce his tax bill.
Go for it. Yes I miss the gun but it was well worth it. I've got the Mauser 7.63 that assasinated Quisling when the Germans left Norway. Complete with the wooden case that turns into a rifle butt. Souveners of a miss spent youth
Go for it. Lucius
I have had them respond in 24 hours.
I have had them respond in 3 months.
The one that took three months was a disapointment. It was a great deal but I was already tied up with another big rehab.