Use of Note to Acquire Bank REO - Posted by Jon

Posted by Mark-NC on December 13, 1999 at 21:44:44:

Jon,
I have never bought a REO from a Bank with a note. But I have flipped these type of properties using a note and selling the note at closing. This way the bank gets all their money without you having to worry about explaining the discount of the note, because it is a cash offer on the first closing.

You may get lucky and they may accept a note as an offer as long as you can prove that the note will be purchased at closing. Just try it all they can say is no.

Mark

Use of Note to Acquire Bank REO - Posted by Jon

Posted by Jon on December 13, 1999 at 17:16:55:

Has anyone used a note sold at close to acquire a Bank REO? If so, could you please explain the general flow of the deal, including any obstacles with the Bank? Thanks.

Re: Use of Note to Acquire Bank REO - Posted by corey

Posted by corey on December 20, 1999 at 24:50:13:

jon,

sorry about the late post. i’m kind of new to the site and i’m just going over all the great comments. concerning the reo/note transaction, however, i would suggest (but please get some advice from a pro) setting up a corporation – costs $100 here in n.c. – and contracting to buy the property in the corporate name. that way, you contract w/ the bank for all cash. you (as buyer) subsequently contract to purchase the property from your corporation. the corporation purchases the property, sells it to you, accepts owner-financing (which is sold out of escrow) and the deal closes. basically, it seems like you just need a “middle-man.” so, why not create your own? hope it helps.

feel free to email me if you need any further assistance. hope it’s not too late.