REO property---Please HELP! - Posted by Amanda-NY

Real Estate Investing
1

Posted by luke-NC on September 21, 2004 at 19:52:54:

try a quick and dirty title search to see where things stand…it seems as if you are not sure if this is owned by the bank or not. if it was, it would most likely be listed already with an agent.

get the owner’s name from the tax records and head down to the courthouse…there’ll be someone down there who will show how to find out if someone is currently in foreclosure or not…

if it is already with the bank, you will probably have to call them up and find out who is listing the property.

if not, get in touch with that owner!

2

REO property—Please HELP! - Posted by Amanda-NY

Posted by Amanda-NY on September 21, 2004 at 19:15:44:

I recently found REO property and would like to make an offer; however, since it’s first time, I’m not really sure what should be my offer.

The house’s details are
Unpaid balance; $160,000

Land Total: $134,000
Improvements: $257,000

Assessed Total $391,000

This property was built 1921 and purchased previous owner (1999) about $225,000.

Should I make an offer based on $160,000 or $391,000?
Comp shows $500,000.

I drove by the property and it looked ok. Well, I didn’t see inside, so I can’t judge the house only outside.

Another thing that the information stated is that the property was record on 8/11/04 and entered on 9/15/04.

Do I have to go to public auction to purchase the property or can I make an offer to lender directtly?

I also don’t understand why lender doesn’t try to sell this property through realtor? The area is really nice…

Sorry, these questions must be really basic for many REI, but I am pretty new and don’t want to make big and costly mistake.

Thank you for your help!

Amanda

3

You’re very confused. - Posted by Redline

Posted by Redline on September 21, 2004 at 23:27:17:

  1. If it’s an REO property, that means the foreclosure is over and the bank already owns it. Yes that usually means they list it with a Realtor. Yes that means since the bank owns it - they are the only ones that can sell it. Auction is over.

  2. If it’s an REO there won’t be any loan balance. Loan is gone. Owner is gone. Bank is now owner.

  3. Any offer you make here has nothing to do with ANYTHING but:

What’s it worth fixed up? (ARV).

  • How much work $$ does it need?
  • How much will it cost me to do the deal?
  • How much do I want to make?
    = OFFER

But I would read up and learn a little before you start making offers. I don’t think you’re ready just yet … and that’s OK.

RL