REO's

Linda , any questions whatsoever you might have on REO'S I can help you with. I deal with them every day and have moved a tom of them. Thanks,Keith

Hi Linda,

Love your last name. You can do so many great things in real estate with that!

As for your question, I'd begin by speaking with the listing agent and find out the requirements of the lender. I.E. how long will it take to get an answer once the offer is submitted? What type of addendums will they require for the transaction? Length of escrow? Is the buyer required to do an additional pre-qual with their lender? That sort of thing.

BTW, we have multiple foreclosure (REO) accounts in my office and the requirements vary.

Good luck!

Have done my fair share and also helped agents in my office with them.  I agree the first place is to start with the listing agent.  Also if the listing agent will cooperate with you and tell you what company their REO is from... IE Ocwen, SPS, Countrywide... valuable information is on each of their web site... addendums that can be filled in then printed, requirements of any special forms or contracts.  I just did a VA REO that had to be on VA form and had lots of extras... Like yes... I gave them the VA vendee financing form, yes i gave them the lead based paint pamplet....

Best of luck to you.

Tammy

Linda - I have been on both sides of the REO transaction - my team represents several lenders on REO listings, but we also have represented many buyers in these transactions also.  Lynda's advise is very good...you do want to talk to the listing agent to find out the particular REO lender's requirements.  Besides being preapproved with their lender, some require a certain amount of earnest money deposit - usually 1% - 3% of the sales price, some have limited inspection period timelines - usually 10 days is maximum, some will only allow a 30 day escrow.  It does vary from REO account to REO account. 

There are a couple of things to be careful of.  Don't miss your time frames once the offer is accepted.  Most REO addendums state that the buyer's contingencies are removed passively.  Also make sure your buyer understands what as is means.  Most lenders will not do repairs once the offer is accepted.  And lastly make sure that the buyer's lender is going to be ready to close on time; most REO lenders will allow extensions only with a per diem amount being paid by the buyer.

I hope all goes smoothly for you!

There are a bunch of pitfalls,  most of the sellers (banks and the like) don't get in any hurry accepting your offer.  Unless of course it's near the asking price and for all cash.  Then you can usually get their attention.  But you never know,  I had an all cash offer the first of August for about 5% under the listing price,  so sent it along wiith all the rest.  They kept emailing me back to ask each of the other offers and this offer for more money.  Seems they just didn't understand that everybody made their highest and best offers going in.  Really not the right way to do things,  but they are the sellers and want me to ask for more.  Then in a couple days, it's time to lower the price so they lower it to the cash offer price.  So I email back we have an all cash as-is offer for that amount, don't you want to take it?  So 3 days later they email back,  OK.  So get the completed stuff in, all the extra addemdums etc.  And wait, 1 week 10 days now 2 weeks,  can't get them to respone. l So I email the buyer's agent called and is withdrawing his offer today.  So I email then again, oh they say, they overnited the acceptance to me 2 says ago,  But here is an email acceptance copy of the contract.   So I send to seller and we are closing tomorrow.  But the overnited package never got to me?  And this is the 18 REO I have done with them,  but first time this way.  Always before very responsive, usually called that day or the next with answers.  Etc.  Never talked to this Asset Manager or on the other listing I have now. 

So I guess what I'm saying is the listing agent may tell you something,  but he can't control the asset manager and he can't get in the car and drive over to his house and talk to him. 

Have you client ready to wait, and wait,  And if they can't wait,  maybe need to go to the next property.

gary

Linda

After writing so many offers and encountering so many different requirements under different situations, I blogged on the Do's and Don'ts when writing an REO offer. Hope you find this helpful.

http://activerain.com/blogsview/664750/Do-s-and-Don

Pacita

Patience should be the number one priority. Wishes for success with it, Linda. Hope you have a fine weekend.