Texas? What street is that on? - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on September 21, 2003 at 17:09:13:
If memory serves, I think your foreclosures go fairly quickly in Texas, about 3 weeks or so. You may soon be able to buy this property from the lender, at a lower price, and without a sales commission being factored into said lower price.
Lenders usually don’t like to negotiate with investors before the sale when they become the actual owners, but, I would contact the lender anyway and just ask if they have ‘any’ REOs in your area. REO is bankspeak for real estate owned (by the lender). They may even mention that they are expecting this property to come back to them in a few weeks.
I would ask if they would take $10k cash for it when it comes back to them and see what they say. That is, if you have the money. And then I’d add, “and it will come back at THAT price, have you seen it?” “Phew what a mess”. You are negotiating already even before they offer to sell it to you, by giving them lots of reasonable reasons to accept a low price. You could also offer them $10k cash for their note, “as is where is”, and tell them you can finish the foreclosure and do the REHAB (hint hint—still negotiating)), and save them storage costs, vandalism damage, and resale costs (more hints as to why they should take your low offer—keep negotiating).
Follow up with a letter giving them the same offers in writting, and the same reasons to accept . Try to find out who the “loan committee is”. Loan committee is bankspeak for the person who makes the decisions on offers like this. Be sure to direct your offer to the “loan committee”.
I’d send another identical letter to his or her boss (sent by intentional mistake to the wrong person). :~)
One final comment. In short fuse foreclosures like this one, the real estate agent will usually accept a lower commission to facilitate a sale before the lender takes it back.
Negotiate or pay full price and a full commission when you don’t have to. Its your money. Its your choice.
The deal sounds good to me. I would go for it.