Buying REOs (foreclosed properties)?

Question

I want to buy an REO from say Countrywide. How much above their bottom line price do the banks generally list their REOs? For instance, I found a home for 450K. When I did a title search on First American Title Company I found that the loans on the property totalled 379K. Is it safe to assume that they will take in the neighborhood of 379K?

Answer 1

NO, their is cost of sale you must build into the loan price.

Answer 2

I am sure that if there is an REO from Country wide, that by now they have assigned this REO to a real estate brokerage firm.

In order to purchase this REO you must contact this real estate broker and make an offer.

Now you may make a low ball offer if you so desire or for any amount you want as far as that is concerned. Make sure that you are in a position to get a counter offer and your offer is taken seriously, so you might want to put in your offer the right to match any offer above your offer.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

That is not safe to assume. The lender, Countrywide or otherwise, will want as close to fair market value as they can get. There have been some REOs in my area on the market for months and months waiting for their price.

They have a Realtor representing them to advise what fair market value is, they list slightly above that and the lender won't take significantly less to "cut and run."

Answer 4

No. They will sell the property at market price. They will only discount the price if they are convinced it will not sell at that price.

While they don't really want to have the house, banks are smart enough to know it does not makes sense to sell a property worth $450k for only $380k.

Banks will short sale properties when the properties are in need of rehab, or especially if it is determined that the property is worth less then the $450k