Re: Next step on bank REO… - Posted by Ben in Ohio
Posted by Ben in Ohio on March 14, 2000 at 08:11:46:
You would raise a ton of credibility with the bank if you were to suggest an appraisal, of the banks choosing. Most likely, they have ordered one anyway. They may be toying with you in the meantime, if you bite at the higher price they succeed.
They know the games being played out here. For each property that goes bad someone or some dept has to explain the rationale for unloading to you before the sheriffs sale.
I am workin on a deal now. My offer to the bank was about $30K on a $43K principal balance plus fees. They suggested an appraisal, it came in at $29K. It didn’t make sense to them because the loan was only 18 mos. old. The question is how did the property go south so quickly? SO, they ordered another appraisal. This one came in at $19K! My offer was a hoot! Nearly cost me thousands of dollars. I revised my bid to $22k. The rep from the bank called me Friday and asked if I could pick up the back taxes of $1500. I agreed. Now, the offer goes to HQ (whoever, or whatever makes the ultimate decision) and I should know in a week or so.
Now, if the deal goes through my plan is to perform flawlessly. And to let them know I can close quickly on ANY of their bad deals. I believe I can do this not because I have a ton of cash lying around, but I will utilize the resources of my local RE investor clubs and/or contacts. If I can show the banks a solution to their problem its a WIN WIN.