I love REO's

By
Real Estate Agent with Charles Rutenberg Realty of Illinois

Anytime an Elgin investor asks me about the market and short sales, I always try to mention REO's.  Why?  Well, because short sales take forever, they can be messy, the offer can get lost in the shuffle and another offer can come along and trump yours in the middle of it all.  Nothing worse than waiting 11 weeks for an answer only to get a NO with a higher offer on the table ousting my patient buyers.  But the REO's, now that is a sweet spot.  Of course, only for the strong stomachs and serious investor, because if you want a deal to be a steal, the property is going to have problems.  Don't they all??  But that being said, REO's always come with a clean title and no liens attached.  Nothing is lurking in the dark after you close and gain title.  Plus you already know the BPO is done, and is usually listed below market value, so instant value is created for a buyer.  With a short sale, maybe a lien will pop up later on or other title issues.  I've had far fewer problems getting deals done with banks on REO's than on short sales.  REO's are usually more aggressively priced and more willing to counteroffer than any short sale. 

Posted by

Jennifer Kinzle
Charles Rutenberg Realty, e-Pro 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Janice Roosevelt 04/14/2009 12:29 AM
Topic:
ActiveRain Community
Location:
Illinois
Groups:
Realtors®
Keller Williams 'Rainers
Out Of The Box!
Posts to Localism
Chicagoland and Northern Illinois Real Estate
Tags:
bpo
short sales
elgin
reos

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Rainmaker
102,595
Sheri Spain
Next Home Team - Raleigh, NC
Wake Co. NC REALTOR Apex to Raleigh to Wake Forest

I agree with you that the REO's have a lot to offer.  Watching a property from start to finish in it's different stages of ownership and how each handle the situation is interesting.

Apr 13, 2009 06:51 AM #1
Rainmaker
5,611,309
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good post. The real estate bargains in the Maryland suburbs of Washington DC are found in the REO inventory.

Apr 13, 2009 07:44 AM #2
Rainmaker
221,814
Michael Wayne Jackson
Coldwell Banker - Novato, CA
Realtor - Seniors Real Estate Specialist Novato

I would agree and say REO's can respond fast but if there is a bidding war it can go above market value, where as a short sale does not have as much compettition. I do like writing offers on REO's too though.

Apr 13, 2009 07:45 AM #3
Rainmaker
472,405
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

I am learning about this market segment as it is spreading quickly around the Philadelphia area. Thanks for the info.

Apr 14, 2009 12:29 AM #4
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Rainer
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Jennifer Kinzle

Top Rated Kane County Agent!
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