REO Propery - What The Bank Needs.
How do I find out what the bank needs for an REO property? I was not able to attend the foreclosure auction to learn what the Bank bid on the house.
How do I find out what the bank needs for an REO property? I was not able to attend the foreclosure auction to learn what the Bank bid on the house.
In most cases the bank want's to get the amount they have invested in the property back. In many cases they will file a trustee or sheriff deed that indicates what the buy back amount was.
Courthouse research is a great place to locate this information and you may want to check and see if the trustee or sheriff has a web site as many post this information online.
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Once it's an REO.... the former mortgagee is less interested in what had been owed and is instead governed by the property's as-is value. Oftentimes the value has been affixed by ambitious real estate brokers in their quest to service an REO inventory and that value might not reflect true market price...and the asking/listed price isn't speculator friendly. If you are making a lowball offer it would help to justify the Offer with a factually compelling Proposal.
The broker is interested in getting top dollar for his/her client... and not too likely to present a copy of your Proposal... only the Offer Price, so a courtesy copy of your Proposal should be sent to the applicable asset manager.
The 'informed' asset manager can instruct the listing broker to accept, reject, or counter.
You may find that the bank has or will list the REO with a realtor that handles REOs. Most REOs are listed with realtors. You will then have a chance to show the bank why their price is too high. Much will also depends on how many REOs the bank is holding and local market conditions. They will really pay attention if you can make an all cash offer.