Bank REO
Think about it - with everyone interested in bank REOs, there’s going to be a lot of investors interested in those properties. It may take you days to even be able to schedule a showing of a bank REO, and by then it will probably be too late. Absolutely nothing unethical in wholesaling with bank REOs or by the way Mr. Big Shot Bank Closing Attorney? it says right there in my contract your bank signed off on Scott Rister and/or assigns.
Somebody might have paid $500k for it with 100% financing and the list price might be $480k as they feel the waters. I saw one short sale in my building that started at $600k (they paid $590k). I have financing for me or my buyer in place before offering. This gives you the best chance to get a low offer accepted. Many financial institutions maintain a listing of foreclosed properties and offer them for direct sale to qualified candidates. For this reason, it is often a good idea for anyone wishing to purchase bank REO homes to talk with a bank about properties currently held in foreclosure.
Many will offer financing at or near their “cost,” especially if they intend to keep the loan in-house and not offer it on the secondary market. If you have good credit, steady verifiable income and a health deposit, use conventional financing and get pre-qualified. Hard Money and Private lenders, although more expensive than bank financing may also be valuable tools, allowing you to close faster, and if you will not be holding the properties for long, may be cost effective as well. Financial experts suggest Bank REOs will be forced to go as low as sixty-five to seventy cents on the dollar in the future. This makes for fertile opportunities in real estate investing.
In markets where real estate is entering a slowdown, especially in those areas where foreclosure filings ?notices of default are increasing, lenders face downward market pressures. Consider, lenders are not chartered to own and manage (Bank REO) property in fact, they face scrutiny and pressure from state and federal regulators to dispose of foreclosed properties quickly therefore, banks will not hold property. We have a list of knowledgeable local lenders that can assist you with this process and provide you with an accurate Pre-Qualification Letter . This letter must be submitted with your offer. Lenders usually try to unload their REO Properties at close to retail price by listing their REO’s with a real estate broker. Yet with increasing frequency, Bank REO properties are being sold for pennies or dimes on the dollar.
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