reo: Everything you always NEEDED to ask but forgot to ask
- 05/19/11 04:43 PM
Scattered over the last two plus years are pieces I have written on how to swim with the sharks in the foreclosure market. Agents and buyers, alike, often struggle with parts of the process, so I am including links below to some of my "how to" entries. Facts about purchasing a HUD property that you may not know: The Buyer has to Turn on the Utilities? Registering and bidding on a HUD property: Illustrated guide to using HUDHomestore Time of day to make your client's bid: Timing DOES matter on BidSelect REO basics, including what the initials mean: Rio? As in Rio … (10 comments)
reo: What do I tell my buyers when a lower offer was accepted over theirs?
- 03/10/11 10:41 AM
As an REO agent, I have been accused of dishonesty so often that I could have retired rich had I sued everyone who deserved to be sued for slandering me. Especially when above list offers are involved, agents and buyers often assume that the listing agent did something crooked. When an agent's client does not have the winning offer, they do not know the facts of the story at the time they have to deliver bad news to disappointed clients. While malfeasance on the part of the listing agent may be the first thing that comes to mind, the buyer's agent should avoid jumping to that … (12 comments)
reo: Rio? As in Rio de Janeiro?
- 02/03/11 01:56 PM
That's in Brazil, right? Copacabana Beach is there, too? What does that have to do with real estate? Yes and yes to the first two questions; but if you're talking real estate lately, you probably mean REO. And it's usually pronounced R-E-O, as in "are--eee-oohhh". REO actually stands for Real Estate Owned, and it means the property is bank-owned. Real Estate Owned is actually an accounting term. Think of it as a category for the type of asset. Cash on hand might be one category. Real Estate Owned is another category. A foreclosed property, then, is an REO. "Is that property … (6 comments)
reo: Agents earn $1500 Fannie Mae bonus
- 01/01/11 05:13 PM
While the last week of the year was definitely stressful, two local agents walked away with their $1500 agent bonuses on my listings, as promised by Fannie Mae. Though there were no bonuses for me as the listing agent, agents for the owner occupant buyers did get their promised bonuses--and it was rewarding to go to those closings Thursday. Both of these closings were troubled closings, taking extra effort from all involved to actually meet the end of year deadline. I'd say the incentive definitely worked! Lenders, title companies, and the asset managers all worked extra hours to be sure the agents and … (10 comments)
reo: I did not want to see THAT!
- 09/15/10 04:41 PM
Nearly life-sized on the iPhone's display was a picture of his severed fingers--taken immediately after the accident happened. He had placed the iPhone right next to the Cash For Keys paperwork as I was pointing to the signature line. "Now look at this one," he said as he advanced the frame to show yet another view. I could describe the photos which are now seared into my unwilling memory, but I will spare you the details. No, I didn't want to look, but the gory scene was directly in my line of sight. I did divert my gaze just enough to avoid looking right … (10 comments)
reo: I know what it sold for at the courthouse (Part 2)
- 09/13/10 05:20 PM
Spectators often believe that final bid represents what the bank will take when they resell the house. The final bid amount, however, does not equal what the lender has in the property or the amount at which the lender will eventually market the house. Especially if they attended the courthouse sale, neophyte speculators believe they have inside knowledge about what to offer. The courthouse sale price is something like a reserve price on eBay. Just as with an eBay reserve auction, the seller offers the item for sale but keeps the item when the reserve price is not met. The reserve price is not revealed. The mortgage holder … (0 comments)
reo: I know what it sold for at the courthouse (part 1)
- 09/13/10 03:44 PM
Courthouse foreclosure sales usually result in the mortgage holder buying back the property. Spectators often believe that final bid represents what the bank will take when they resell the house. After the courthouse sale, speculators may start trying to make offers according to the ending bid. They try on their own to make an offer to the bank and then they seek out an agent who they believe can help them snatch up the property. Especially if they attended the courthouse sale, they believe they have inside knowledge about what to offer; and that makes them anxious to lock in a deal. Several things are … (7 comments)
reo: Going, going, gone... NOT!
- 09/02/10 04:58 PM
So that bank-owned property you've been watching is going to auction, and you hope to snap it up at a bargain price. Not so fast! Negotiations may not be over even when you hear those magic words, "Going once, going twice, SOLD!" Whether the auction is on-site or online, unless the auction is ABSOLUTE, the "winning" bidder has not actually snagged a sale price. If the seller's minimum or reserve price has not been met, the highest bidder has merely won the right to negotiate farther. In the case of an on-site auction, the buyer may even be asked to sign a contract. … (9 comments)
reo: Foreclosures for PENNIES on the DOLLAR?
- 05/19/10 12:25 PM
You have, no doubt, heard the claims on radio, on late-night TV, and maybe even at the coffee shop! Yes, it's true. You probably can buy a foreclosure for pennies on the dollar, but that may be 95 pennies on the dollar!"But that cannot be, because everybody knows that foreclosures are such a good deal," you may say. The truth is that foreclosures usually are a good deal, but the "pennies on the dollar" myth is way overblown. Foreclosure properties are appraised before they are priced for the market, and they list at a somewhat discounted, but reasonable, price that … (3 comments)
reo: REO agent answers FAQs
- 05/19/10 12:01 PM
What is biggest mistake REALTORS® and their clients make when submitting an offer on REO, Foreclosure, Bank Owned property? Failure to fill out all documents completely (per instructions) is the biggest mistake. Second is the failure to read those documents. Example: Ordering title work from the buyer/lender side, though the addendum specifies that the seller is to select the title company. Fill out all of the forms, do not make changes on the addenda, and actually read what you sign--that's the best advice I can give. Overall, though, the biggest mistake agents make is assuming that they can "drive" the … (1 comments)
reo: Buying lists of foreclosures
- 06/25/08 02:47 PM
Just don't do it! The vast majority of bank-owned homes are listed by local real estate agents. If you want to purchase a foreclosure, just pick up the phone and call a local agent. A bank-owned home, or foreclosure, is also referred to as an REO. That stands for Real Estate Owned. Seems counter-intuitive, doesn't it? Why call it "OWNED" when it seems that those are the homes that are not owned? Well, they are owned--just by an institutional owner, and REAL ESTATE OWNED is an accounting term that simply categorizes the type of asset on the positive side of the … (10 comments)
Scattered over the last two plus years are pieces I have written on how to swim with the sharks in the foreclosure market. Agents and buyers, alike, often struggle with parts of the process, so I am including links below to some of my "how to" entries.
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