How To Buy A Bank Owned Property
Brad_Davidson October 13th, 2009
I have dozens of frustrated clients trying to buy bank owned property that just can’t grasp why they can’t buy a home. I feel like I’m constantly the bearer of bad news and I’ve even lost a few clients by being honest with them.
This video says it well:
Here’s the general run down on REO properties.
1. The asking price means nothing.
2. FHA loans? Fa-get-about-it. Banks don’t want them.
3. You’ve got all cash? We can talk.
4. Communication? You’ll be lucky if the selling agent even calls you back.
5. Offering over the list price? Be prepared to remove your appraisal contingency.
There’s one REO broker , OCWEN/Altisource, that out sources the deal to India and you can’t even talk to a human who’s ever seen a house in America.
Buyers need to take a step back and not drink the realtor kool aid that tastes like 2003. The “shadow inventory” is estimated at 7,000,000 properties. You’ll have plenty of chances to buy without overpaying to get the $8,000 tax credit.
Brad Davidson – Real Estate Commission Rebates
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Brad:
Thanks for the advice.
I think it is sound. I almost got sucked up into serious looking.
But in OC we are a LOOOONG way from the bottom.
I agree. I just watch these people running around to snap up a deal . I am confident that I’ll have plenty choose with very less competition in next 2-3 years.
You always will get morons buying on the way down. It is hysterical actually seeing people buying homes that are off the bubble, but clearly still IN THE BUBBLE. Even more fun to read loser realtors starting to chant the, “buy now or forever be priced out”. These folks should be tar and feathered; how few realtors in SoCal seem to have education, class, or ethics. Will be certainly happy to see them suffering in the coming years… that should cut into their meth habits.
I managed to get a place locked in in March or so, JUST before the banks started restricting the flow of foreclosures to force people into bidding wars.
Then the bank was mercilessly clubbed over the head with home inspections, mold inspection reports, etc. In the end, they had to rebuild three bathrooms and a kitchen, AND come down $25k from their list price (already lower than anything else in the local area). The sale only just closed in September though – it took more than a while of wrangling before we finally landed it. I’ll observe that my mortgage payments are actually on par with my friend’s rent on a very small (comparatively) apartment, so this was a decent buy, particularly if we get hyper-inflation in the next few years.
I really feel sorry for anyone trying to wrangle with the current market, though. Can’t believe they’re sitting on all these foreclosures to try and keep the market propped up.