What's The Deal With Bank Owned Real Estate? - Posted by cynthia lewis

Posted by FrankPghPA on February 04, 2000 at 24:36:37:

Jim…sounds to me like it was the Agent who messed this deal up for you, not the lender. Obviously, the agreement wasn’t signed by the lender. I’ve never seen an Agent sign an agreement for the lender.
Could she have gotten a friend to make a higher bid to beat you out?
If you’re having a probl;em finding an Agent, take a look at an article I wrote a while back. It’s in the “Money Ideas” section. The title is, “How To Find Agents Who Will Work With You.” People who have used it have had succes with it. It’s been used as a letter, Fax, e-mail, and as a guide when talking with an agent face-to-face. One change I’ve made to it is, delete Criteria #5. “Asking Price…” You don’t really need that part.
Good Hunting

What’s The Deal With Bank Owned Real Estate? - Posted by cynthia lewis

Posted by cynthia lewis on February 02, 2000 at 13:52:27:

I’ve heard alittle about proprties owned by banks, but is there any real hope of profit? What are the banks motives?
Are they ready to sell quickly or do they try to draw the process out to get alot out of the buyer?

Re: What’s The Deal With Bank Owned Real Estate? - Posted by Chris (FL)

Posted by Chris (FL) on February 02, 2000 at 21:34:40:

Jim talks about the offer blitz. Keep in mind when the banks somrtimes want to clean up their books – at the end of every quarter – good time to blitz.

Also remember that you’re playing on their field – meaning that their addendums give them the right to stick it to you. …They can accept your offer , and then scr*w you over later by selling to a higher bid. …C’est la vie.

I’m no expert , so take what I have to say for what it’s worth.

Re: What’s The Deal With Bank Owned Real Estate? - Posted by Jim IL

Posted by Jim IL on February 02, 2000 at 16:37:07:

Cynthia,
I am by no means an expert here, but let me share my experience with REO’s.
I have bought 5 REO’s.
I have made offers on too many to count.
The motivation for the banks is different on each and every property.
I have found that sometimes a certain bank will have a pattern as to how they sell and how low they will go.
But, not very often.
There is one local bank here that always repairs the homes fully and lets em sit on the market for full retail.
I have watched there homes sit, and then sell, and looked for the sales price, and it is usually less then the asking price, but not by much.
But, there are other bansk that do nothing to the homes, let em sit, and then eventually dump them for low prices.
Timing is everything.
When I go on a “Blitz” looking for REO’s, I send out offers at a rate of 25-30/week.
Then, after most or all are rejected, I wait a few weeks, and resubmit my offers, same numbers.
Since I have only done my “blitz” technique a few times, the ratio of offers and acceptance is kind of low, but I did get some deals that way.
Bottom line is, you can never really tell if a bank is motivated until you submit that offer.
Some people do not like the shot gun approach, and that is fine, but it does work if you have the patience to do followup offers.
I personally do not like that approach very well, I’d rather deal with FSBO’s who are motivated and I can buy with terms, but for quick flips, REO shot gunning is fine.

Hope that helps a little ,
Jim IL

Re: What’s The Deal With Bank Owned Real Estate? - Posted by FrankPghPA

Posted by FrankPghPA on February 03, 2000 at 09:26:42:

Chris… I’ve been doing REO’s for several years now and I submit my offers and repeat offers once a month. My experience has been that there is no “best time” to submit offers other than what I use.
Also, I’ve never had, nor heard of any bank “scr*wing” anybody over after having accepted an offer in writing. If you know of any such cases, please fill me in on the details.

I LOVE this business!

Good Hunting…

Re: What’s The Deal With Bank Owned Real Estate? - Posted by Jim IL

Posted by Jim IL on February 03, 2000 at 13:34:21:

Frank,
I had a bank pull that trash on me, or should I say, the RE agent that was working for the lender.
We put in an offer and it was accepted. The agent called and told me, and asked for my “Earnest money check”, since the agreement stated that within THREE days of acceptance it was due.
So, I meet the RE agent at her office, get a copy of the agreement, and give her my check.
I get home and look at the contract, and it looks alright, there is a signature on the seller line saying, “So and so, agent for lender”.
Fine, seen that before, no big deal right?
WRONGG!!!
Got a call the NEXT DAY, agent saying "come pick up your check, you were outbid, the seller took another offer this morning."
Well, to make a long story short, I blew a gasket, went and got my check, talked to the broker at the office about his agent, and tried to call the lender direct.
I did not get the home, because I gave up, but I did complain about this agent, and the broker to the state, and the agent was FIRED!
(not totally sure if it was from my complaint or a combination of things. She was an indiot.)

So, the deal was accepted, “in writing”, but that did not matter.
The lender was “AmeriQuest” by the way.
And, we were told that since the agent had signed the contract for the bank, then the contract was not official. Which was done the same way on the last two I did like this. Anyway…
Whatever…NEXT!!

So, it did happen to me, once,
Jim IL