Posted by phil fernandez on January 06, 1999 at 16:28:42:
David,
Absolutely and mention you need an answer within 48 hours because you are looking at similar properties and you are only going to buy one.
This may create some urgency in the minds of the mortgage co.
First R.E.O. Bid offer - Posted by David
Posted by David on January 06, 1999 at 11:27:22:
I just submitted a bid on a R.E.O. that was taken back by an out of state mortgage company after no offers at the foreclosure auction yesterday. What is the usual time frame for me to hear a response? This is my first and I’me a little anxious. Any response would be appreciated.
Thanks, David, GA
Re: First R.E.O. Bid offer - Posted by SCook85
Posted by SCook85 on January 06, 1999 at 20:00:18:
I make offers on REO’s all the time. They get accepted in all different time periods. Rarely do I hear back within week. Average turnaround time on REO’s I would estimate to be a month. I always put that the offer expires in 48 hours, but it just gets ignored. If you don’t get an offer back in a month resubmit it. Often it gets accepted.
SCook85
Re: First R.E.O. Bid offer - Posted by phil fernandez
Posted by phil fernandez on January 06, 1999 at 14:49:11:
David,
Was the offer in writing or was it verbal. Give the mortgage company a deadline, such as this offer is good for 48 hours. Otherwise if you leave it open ended , they might shop your offer.
Also make sure they know that you are looking at other property so you will need an answer from them within the stipulated timeframe.
Re: First R.E.O. Bid offer - Posted by David
Posted by David on January 06, 1999 at 16:20:10:
The offer was written. They said to fax it to them. But I did not send a deadline. Should I contact them again and try to establish a deadline?
Re: First R.E.O. Bid offer - Posted by Jim IL
Posted by Jim IL on January 06, 1999 at 18:28:04:
David,
I just went thru that same hassle last month. I submitted my “offer” in writing with a 48 hour deadline, and also explained that I was looking at multiple properties like this one, and only buying one.
That did not “shake” them into any action at all. A week went by and I finally got a “Counter-offer”. The counter offer frankly was still a great deal, and I was ready to jump on it. The only thing I did not like was that they disclosed (oops!) They had received three other offers and the “counter-offer” was going to all of us. I confirmed thru my “Buyers agent” that my offer was identical to the other two offers, and this was why they took there time in answering all buyers.
The bottom line is, I was able to act fast, so I got the counter offer signed that day, and I’m closing next week.
I also learned from my “buyers agent” (I’m pretty new at this) that most of the REO’s she deals with take a few days to a week to answer offers because the “management” needs to look over everything.
One other point, this bank had accepted previous offers on this home, and lost the deals because the buyers financing fell thru. They demanded “proof of funding”, and since this is a flip, I had none. So, I acted like I was “king of REI” and said “Nope, you cannot have it, and that my finances were my business not theirs.” I also told my agent that if they balked at my answer, then so be it. Let the deal go away, and I’d simply move on to the next.
I also drafted a short letter that said I was an investor who utilized many different funding methods, and that I was going to “shop around” before I committed to one lender or other. I told the “seller” that this was not meant to be rude, simply me making the best business decision for me.
GUESS What?
They signed my response, and the home will be flipped next week to another investor, netting me $16k.
So, act like what they have isn’t that big of a deal, and that you would walk away from it, if they won’t play by your rules.
Because, truthfully, you should walk away if they won’t play. There ARE other deals out there.
Hope this L-O-N-G winded response is helpful.
you are not alone, this board is here for us all, and GREATLY appreciated,
Jim
now I’m off to find money to goto the convention. I’ve already got my cash from this “flip” next week committed to another project. Perhaps I can find another deal to pay my way to Dallas…I hope so.