REO vs. approaching seller
At what point in the foreclosure process do you buy REO vs. approaching the owner to strike a deal? Once the notice of default is sent, do you deal w/ the owner or the REO dept?
Thanks!
At what point in the foreclosure process do you buy REO vs. approaching the owner to strike a deal? Once the notice of default is sent, do you deal w/ the owner or the REO dept?
Thanks!
I'm not totally sure but I think it goes this way.
NOD-have 90 days for homeowner to fix their problem.
If nothing is done between the time, NTS is scheduled. If nothing is done, the bank gets it and it becomes REO.
NOD, you can talk to homeowner.
NTS, its hard to talk to owner but it is possible.
REO, talk to the bank and have to negotiate w/ the bank.
REO stands for Real Estate Owned or Bank owned property. If you're looking at a REO the bank already has foreclosured on the property and taken pocession of it. There is no other owner than the bank.
At any time BEFORE the actual foreclosure, you can speak with the seller. Most likely, the bank will have to become involved because the investor (you) will be making an offer less than the amount owed the bank (a short sale).
I'd suggest finding a RE agent to help with the contracts and methods on your first couple of deals.
Roger