Re: REO Propertys listed with agents - Posted by Bill (OH)
Posted by Bill (OH) on June 10, 2000 at 04:20:10:
These banks can be very motivated, however there is also the agent aspect. I know of some good properties that I’d love to buy, but the agent refuses to cooperate in processing the paperwork; getting offers over in a timely fashion…etc. (BTW, the way this guy is doing this is he works for a brokerage with multiple offices. You have to put the offer in to an office which is not his home base—and from there it’s all down hill. He can claim he didn’t get the offer and there isn’t much else you can do).
On the other hand, there are some great REO deals—I get them all the time for myself and clients. The last one I closed on was listed at 39,900 and the purchase price was negotiated down to 33,000. Often these banks will even help with financing.
The real downside to doing REO’s is the length of time to do the deal. The 33,000 dollar deal took almost 7 weeks and we had the closing scheduled twice before it actually closed. There is the agent and his broker; the REO dep. of the big brokerage firms; the local title company and attorney for the bank; two or sometimes three banks with an interest in the property; unpaid taxes/utility bills; titles from sheriff sales that aren’t perfected…etc.
But, if you are patient and persistent, you can come up with some great deals…