# Anyone know about buying REO?



## Ruralnurse (Jun 23, 2011)

I am looking at some property that was advertised a few months ago by a realtor for the owner. Then just a few days ago it is now listed as bank owned due to foreclosure.

I don't know much about this. Has anyone ever done this? I have read that often these properties can go for much less than asking price because the bank wants to unload it ASAP. Things are not moving in this area now anyway, lots of unemployment and no one is buying.

It is raw land with only power to it, so no need to worry that a house is in poor shape.

Any thoughts or advice about trying to purchase REO property.

Thanks,
Ruralnurse


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## rickfrosty (Jun 19, 2008)

Hi, I'm a realtor & I can tell you that buying real estate owned (by banks) can take patience, but you should get a great bargain.
Bank will probably want you fully qualified, very straightforward offer, close quickly. I'm sure that if you waved cash under their nose it would work !
They are all different, sometimes the big one's left hand doesn't know what right hand is doing, confusing, takes patience, continued politeness, but may be well worth while.


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## Parttimefarmer (May 5, 2011)

We have bought a REO. They do like straightforward offers and one hand didn't know what the other was doing more than not. My house didn't go for much less than asking because they priced it at a realistic price, not what was owed or they hoped to get. It was a good deal though, less than half the previous mortgage balance.


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## Navgatr (Aug 3, 2011)

We purchased our homestead last fall. (With house and outbuildings). Got it for 1/2 price in the end, but it did take patience. Over a year went by between the trustee's sale and our closing. Good luck. At least with your land you do not have to worry about condition of house or buildings. No surprises!


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## Ruralnurse (Jun 23, 2011)

Thanks for all the responses. So all of you are saying to be patient and have a offer ready when I approach them. That sounds like very good advice. 

The property was for sale this spring for 49k and now owned by the bank is being offered for the same price. I have seen some other properties of the same size (20 ac) in this area with a well (this one does not have a well) for that same price. So I am thinking that perhaps I can offer less as it does not have a well.

I also wonder about waiting a while too, as nothing here is moving at all and I would think that the longer it is on the market the more likely they would go down in price. I know that always risks someone else buying it, but we are going into winter and things move even slower in the cold.

Thanks again all,
Ruralnurse


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## bluetick (May 11, 2002)

A vacant unimproved 2 acre lot adjoining my place was for sale for $200,000 when I moved here two years ago. One of my neighbors bought it for $45,000 cash last spring. This is southern CA, and I think 45k was too much!


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## Ruralnurse (Jun 23, 2011)

Wow Bluetick, that is sure a big difference between asking and sale price! But I guess it is people that are observant and ready and know when to strike that get the good deals. 

I am excited to really get some property and keep looking.

Ruralnurse


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## DanielY (Aug 25, 2011)

You can get a list of property that is being offered as well as the properties that have sold in that area. With it just being land it makes it easier. Right now you may need a real estate person to interpret the list for you though. They can look very crazy with prices all over the place. For example 6 houses have sold since January within half a block of mine. 5 of them look like they sold for around 65k the 6th sold for 107k. this is because the 5 where short sales, repos etc and the bank took a hit on them. the 6th was a traditional sale that more accurately reflects the value of the houses here. still it makes it near impossible to sell our house for what it is worth when every other house on the black can be bought for 65k.
Anyway what you ant to ask an agent for is comps on ... tell him the area you are looking in and at what sort of property.


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## Freeholder (Jun 19, 2004)

You can get comps yourself by looking on Zillow, too -- probably the same information the realtor would look up for you.

Kathleen


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## Katskitten (Aug 5, 2010)

Here is another question. We found a property in an area that we could move to and it is owned by some sort of investment firm.Found this info through the county tax records. Price is right, comments say sold as is, so we have a friend looking at it later this week. We have tried to contact the realtors with no response. Would it be ethical to contact that company directly or have our bank contact them?


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## Dutchie (Mar 14, 2003)

BlueJuniperFarm said:


> You can get comps yourself by looking on Zillow, too -- probably the same information the realtor would look up for you.
> 
> Kathleen


Be careful. Zillow is extremely unreliable.


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## Dutchie (Mar 14, 2003)

Katskitten said:


> Here is another question. We found a property in an area that we could move to and it is owned by some sort of investment firm.Found this info through the county tax records. Price is right, comments say sold as is, so we have a friend looking at it later this week. We have tried to contact the realtors with no response. Would it be ethical to contact that company directly or have our bank contact them?


If you can't get the realtor to respond to you, go straight to the seller.


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## rickfrosty (Jun 19, 2008)

Katskitten said:


> Here is another question. We found a property in an area that we could move to and it is owned by some sort of investment firm.Found this info through the county tax records. Price is right, comments say sold as is, so we have a friend looking at it later this week. We have tried to contact the realtors with no response. Would it be ethical to contact that company directly or have our bank contact them?


Try listing broker again, say you will go to owners if no response, but there is a listing contract that will keep you from dealing much directly w/owners.
Banks (or investment firms selling repo-ed property) say sold 'as is' no matter what. They prolly have many properties & will be selling cheap so absolutely take no risk as to disclosures.
You sound as if you should have a 'buyer's broker' no offense, it is common now - he or she will work FOR you & there won't be any more commission.


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## Katskitten (Aug 5, 2010)

Where do we look for a buyers broker? The house we were looking at went into escrow just the other day. Our friend got into the house becasue of repairmen working and one of the realtors showed up as he was just leaving. We have been looking all over the area.


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## ablesolutions (Sep 1, 2011)

Make sure the real estate is properly backed by a title or deed. Ask who has possession of the deed or title, and ask to see the original. Why?, because many banks are claiming ownership but do not possess the title or the deed, and without it, they don't own it. All they have is an empty claim.


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## Parttimefarmer (May 5, 2011)

ablesolutions said:


> Make sure the real estate is properly backed by a title or deed. Ask who has possession of the deed or title, and ask to see the original. Why?, because many banks are claiming ownership but do not possess the title or the deed, and without it, they don't own it. All they have is an empty claim.


With our house, the day of closing, they couldn't satisfy the title company's paperwork requirements. We had to wait to the next week while they scrambled. I think they had gotten away with it before.


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