Posted by Pat_OH on January 25, 2000 at 17:46:57:
Peter,
This isn’t Fifth Third Bank by chance, is it?
Pat
making an offer on an “reo” - Posted by peter
Posted by peter on January 24, 2000 at 22:27:51:
i’m working on trying to purchase this property that is a reo, the mortgage co. diden’t even know they owned it. i had to talk them into doing a title search. today they finally got back to me and now agree that they do own it, but now need to find out where all there files are on this property? i sent in a offer to this one reo dept. many months ago, and was told they had no records of property and that they could not sell me something that they did not own? now today she says they do own it,but now i would have to deal with a real estate co. that they will hire to market this property. i want to purchase this property direcly from the mortgage co.(with no compitition)after all it was me that showed them that they owned it and it was lost in the cracks! any sugestions?
Re: Be a little Pushy, get their attention, but don’t become a Motivated Buyer - Posted by Millie I.
Posted by Millie I. on January 26, 2000 at 24:14:38:
Peter,
I agree with Jo, but that does not mean that you will be left out if you refuse to let it happen. Keep talking to them, don’t let them forget you. Get the full name, title, branch, and telephone number of the persons you talked to. If they list the property with a realtor, make sure you don’t let them of the hook until you get the name, company, and telephone number of the realtor.
Once listed, contact the realtor ASAP. Make the offer again, tell the realtor that you expect the bank to look at you offer first because you had made an offer directly to the bank before, and discussed the matter with Mr.XX of XX branch, and his telephone# is…( You are making a claim in case someone try to steal the deal from you. Sometimes you get your way when you cause a little trouble… very nicely with big smiles )
It is very important that you are little PUSHY, but be very nice and professional, and keep smiling. Unless you have a competitor, the realtor will love you instantly, because if she gets the property sold to you, she’ll get a commission without spending money or time to list the property, or to run around trying to show it to a bunch of potential buyers.
BUT, DON’T get so stuck on that property that you become a Motivated Buyer, it is a NO! NO! No! Don’t let the bank think that you want it at any price, because they WILL ask for full market value, especially when they think they GOT you.
Whatever they list as the sale price, don’t offer more than 60% of their price on your first offer. They will either give you the cold shoulder, or just drop a little on the price. Raise it a little on you second offer(let’s say 65%), they will most probably stick with the last price, or give you a final price. 90% of the time they will not drop any more( for now).
Well, it’s time to WALK. Don’t act disappointed, there are other fishes in the sea, and other better deals to make. Tell the realtor to contact you when the bank come down on the price. Go shopping somewhere else.
If someone pays their price and get it… poor sucker, be glad you ain’t him.
In most cases, if there are no better offers, the bank will drop the price. Sometimes they might ask the realtor to give you a higher counter, but whisper to the realtor “Don’t lose the buyer”. Now they are becoming a motivated buyer ready to eat off your hands. Now go get them. Negotiate, but have a maximum price in your mind that you will pay. Remember if the spread between the buying and flipping price is not enough to cover your overhead cost plus desired profit, the property is not worth buying. Always know how much you want to profit from the property, if you don’t get what you want, go find another one. There are more REOs out there than investors.
Best of Luck,
Millie I.
Re: making an offer on an “reo” - Posted by SCook85
Posted by SCook85 on January 25, 2000 at 05:38:02:
Peter,
In many cases it is written in a banks corporate charter that they have to market their REO properties through a realtor. This is done purposely to create competition and to make sure the sale is done in the best interest of the bank (although that rarely happens). Especially with larger banks, you will rarely be able to talk to someone who can override this rule, and they just go through the motions.
I have talked with banks prior to homes being listed and made offers that were accepted. I had to go to their approved realtor to submit my offer because they were not allowed to take the offer directly from me.
I hope this helps.
Happy Investing!
Steve Cook
Re: making an offer on an “reo” - Posted by JoeKaiser
Posted by JoeKaiser on January 24, 2000 at 23:33:23:
Peter, should you ever find another one of these, (not likely but who knows) you should figure out a better “play” so you’re not left with nothing more than a pat on the back.
There are ways to end up owning this sort of thing.
Joe
Re: making an offer on an “reo” - Posted by peter
Posted by peter on January 25, 2000 at 15:13:23:
joe, at one point of my investagating, i had talked with a woman at a different office of the the same mortgage co, down in fla. and this was the woman who said she thought it fell thru the cracks, but is was not out of her office, she said if it was she would “give” me the house, if she knew her office owned it for so long on the books. the other office out of ohio, tells me that there fla. office is the one who has this property? i’m anxous to see what the fla. office is going to say? i’m going to try to get her to accept my offer directly? who knows? if i don’t ask i’ll never know right?