If you are an investor or looking to buy a home to live in, now is the best time to buy an REO. An REO is simply a name for a property that has been repossessed, was not sold at the foreclosure auction, was repurchased by the bank at the auction, and is now owned by the bank. Hence the name real estate. The reason this is a good time to buy this type of property is because the number one goal of banks is to make loans on properties, not to buy and sell them.
This is why banks do not have their own home buying and selling team. When they have a property for sale, they have to find a real estate agent from an outside company to represent them. And due to bad loan programs, bad loans made, and the recent economy, banks own more of these properties than they realize. It is better and more profitable for them to sell the property, gain access to those funds again, and recover those funds by making loans and earning interest. That is your business model.
There have been some recent regulatory changes that allow banks a little more freedom with their reserve cash so they don’t have to let you burglarize the house, but you can still buy REO properties for $.40-$.75 per dollar. regularly. It all depends on the bank you are dealing with, how long the properties have been on the market, the bank’s urgency to access available cash reserves, the condition of the property and a few other factors. However, don’t worry about all this. You will simply look for great deals and continue to make offers that make sense to you and your intentions for the properties until you get one, unless it has a better price or terms that you agree with.
There are two ways to find properties like this. The first is to drive through the neighborhoods where you want to buy properties and look for real estate agent signs. Take a look at the properties and collect the necessary information. Then call the real estate agent at the sign and gather more information about the property. They asked that real estate agent if they had any other foreclosure properties for sale in that area.
The second way to do this is to go to Realtor.com, do a search in your area, sort the search in ascending order so the cheapest property shows up first, and then start building your list from there. Yes, most of these properties will need work, but what you’re really trying to find here are real estate agents that list these types of properties and other REO properties so you can contact them and have multiple realtors send you offers.
Once you find a property you want to make an offer on, the process is simple because you will be using a real estate agent. All you have to do is contact the real estate agent who is going to represent you as the buyer’s agent and tell them how much you want to offer, how much for the security deposit, when you want to close and any other special provisions you want. can have.
The real estate agent will do the rest and send you the contract to sign and collect the deposit. Then he will wait to see what the bank has to say. They will accept it, counter it, or reject it. If they accept it very well, if they counter it it’s amazing, just don’t go over the maximum allowable offer, if they reject it then resubmit the same offer in 30 days if you haven’t bought another property by then.