agents and foreclosures - Posted by tina

Posted by Rich[FL] on May 23, 2006 at 09:20:21:

There is one company up in the Atlanta area who only buys REO property from the banks; and they get them for 50 cents or less on the dollar. So it is obviously possible, but it may be bank or area specific.


agents and foreclosures - Posted by tina

Posted by tina on May 22, 2006 at 07:56:51:

I recently ran accross a web site for Illinois foreclosures. The site had listings from an area re agent for bank owned proeprties in the area. Does anyone know the advantage or disadvantage when dealing with agents in a foreclosure situation? I have only dealt directly with homeowners, so if anyone has comments I would appreciate them… For those of you that wonder what site I found, I believe it was not the best site around, but it did list bank owned properties soon to be available.

THanks for the help!

Re: agents and foreclosures - Posted by dealmaker

Posted by dealmaker on May 23, 2006 at 06:10:43:

In my experience, which isn’t too great on REOs, banks are going to want MARKET PRICE. Remember, they have a fiduciary responsibility to their shareholders, and they are a regulated industry.

For starters, the person responsible for the sale will have gotten a “broker’s opinion of value”, and possibly an appraisal. Let’s say those numbers come in around $100K and they calculate that they’ve got another $5K or so in legal and other expenses. Where’s the incentive for that employee to take your (below market) offer to the boss.

Employees who continue to bring in below market offers; get frustrated in their work, get their bosses PO’d at them, don’t appear to be very concientious, end up not getting promoted and/or get fired.

Again, I don’t have much REO experience, but it’s another channel to fish in. I’m an opportunistic buyer, I’ve bought FSBOs, REOs, MLS listings, estate ppty and a couple of properties from out of country buyers. I fish in every stream, you never know when you’ll get a bite!