Hello REO World:
After spending 8 months in the REO Division of buyers and sellers, gaining new clients and losing a few, I felt it was time to address this unsettled REO Market and how we can be successful with our clients.
It has dawned on me, that purchasing a home in today's market is much different with a whole new set of rules for success. The REO's listed today can be in an variaty of shapes sizes and conditons. We need to keep in mind that most lenders require homes to be lieveable i.e. must have stoves, and sinks with proper plumbing. I am sure we have all shown homes with missing parts! With the number of FHA loans floating around, this really can be an issue with a successful COE.
Other issues we seem to be facing are the delays in obtaining a ratified contract from the bank once an offer has been submitted. I have heard of some buyers agents waiiting nearly three weeks! This is three weeks into an escrow and delay of a close. Did you also know that a buyer may have to pay a daily per diem if the buyer is late with a close of escrow? Did you also know that the buyer should not be responsible for this if the seller (the bank) has delayed the close due to a three week delay in a ratified contract?
As an REO Listing agent, the process can be frustrating, but buyers still have "rights"....Do your inspections....Give yourselves at least 40 day close of escrow. You can always close early, but take the stress away and give yourself time! Most often the title companies are not local and the extra time is needed! Inspection periods are between 7 and 15 days. Many REO's are only 7 days..be prepared with your inspectors. Some REO's require the buyer to turn on utilities, although most are turned on by the selling agent. The water may be off due to lack of pipes! All REO's are sold AS IS. All REO's have no prior disclosures of property. Always perform your due diligence, and inspect, inspect, inspect!
Most important, communicate with your agent/clients! This is a new market for all of us, and as long as we ask questions and listen to the expertise of our agents, we will all be successful in this market!
Any REO questions......Just ask!