InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Code References 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 70+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map About Us Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: REO's only happen when there's no equity to begin with. Posted by C D Palmer on August 15, 2007 at 0:27 AM In Reply to: REO's only happen when there's no equity to begin with. posted by Ward-CA- on February 19, 2002 at 3:09 PM : : Questions for you: I will be hosting a seminar on How to Finance and Acquire REO properties...and also we represent properties at 50-55% on the dollar...sold at this seminar, for more info email moneysourceinvestments@yahoo.com...thanks : : 1) I've heard of JBB's, but is there such a thing as "SBB" (Senior Bene Buyouts)? : : 2) If purchasing an REO, what can I expect to pay? The loan balance + any accrued charges? FMV (or close to it)? (i.e., will the bank attempt to make as much profit as possible after they aquire the property?) : : 3) Do banks allow potential buyers to inspect REOs? In other words, if they are selling "AS IS" does this mean they will not allow an inspection and you take the risk of taking a property "sight unseen"? : : 4) If I purchase an REO "AS IS" (in need of major repairs) can I negotiate a lower purchase price that takes into account the cost of the repairs I will shoulder? Or, will the bank want, at minimum, the amount they are out (loan balance + add'l charges)? Also, can I negotiate the price down if I pay in cash? What is the procedure for making an offer for an REO? Presuming the Lender will take the property back at auction, is it acceptable to make an offer to purchase the anticipated REO before the auction? : : 5) I am interested in a property going up for auction (in CA)- needs lots of repairs (judging by its exterior) but located in EXCELLENT neighborhood with great comps. I am debating whether I should try to outbid the lender OR purchase it afterwards as an REO (as I would then be assured of clean title). What do you suggest? : : I'm a first timer - hubby & I will be owner/occupant. : =•=•=•=•=•=•=•=•=•=•= : Mary, : 1). Not really since it’s the threat of the foreclosing senior that scares the beneficiary of the 2nd trust deed into giving you a deep discount. : 2). The foreclosure of the bank’s lien extinguished it. So the lender will sell the REO for whatever they think they can get for it. : 3). Yes, like any retail seller, lenders allow inspection of their REO’s for sale. The “as is” condition doesn’t preclude looking inside, nor does it mean no disclosure of negative conditions known to the lender. : 4). You should probably get your own house inspection report, and working from that, better justify your lower offer due to the number and severity of the repairs you’re agreeing to undertake. Feel free to negotiate as if the seller was just a regular person. Making an offer prior to the lender getting the property back never seemed to help me any. : 5). If it’s a good deal before the auction then it will never become an REO—someone will buy it before the lender gets it. : Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : Questions for you: : I will be hosting a seminar on How to Finance and Acquire REO properties...and also we represent properties at 50-55% on the dollar...sold at this seminar, for more info email moneysourceinvestments@yahoo.com...thanks : : : 1) I've heard of JBB's, but is there such a thing as "SBB" (Senior Bene Buyouts)? : : : 2) If purchasing an REO, what can I expect to pay? The loan balance + any accrued charges? FMV (or close to it)? (i.e., will the bank attempt to make as much profit as possible after they aquire the property?) : : : 3) Do banks allow potential buyers to inspect REOs? In other words, if they are selling "AS IS" does this mean they will not allow an inspection and you take the risk of taking a property "sight unseen"? : : : 4) If I purchase an REO "AS IS" (in need of major repairs) can I negotiate a lower purchase price that takes into account the cost of the repairs I will shoulder? Or, will the bank want, at minimum, the amount they are out (loan balance + add'l charges)? Also, can I negotiate the price down if I pay in cash? What is the procedure for making an offer for an REO? Presuming the Lender will take the property back at auction, is it acceptable to make an offer to purchase the anticipated REO before the auction? : : : 5) I am interested in a property going up for auction (in CA)- needs lots of repairs (judging by its exterior) but located in EXCELLENT neighborhood with great comps. I am debating whether I should try to outbid the lender OR purchase it afterwards as an REO (as I would then be assured of clean title). What do you suggest? : : : I'm a first timer - hubby & I will be owner/occupant. : : =•=•=•=•=•=•=•=•=•=•= : : Mary, : : 1). Not really since it’s the threat of the foreclosing senior that scares the beneficiary of the 2nd trust deed into giving you a deep discount. : : 2). The foreclosure of the bank’s lien extinguished it. So the lender will sell the REO for whatever they think they can get for it. : : 3). Yes, like any retail seller, lenders allow inspection of their REO’s for sale. The “as is” condition doesn’t preclude looking inside, nor does it mean no disclosure of negative conditions known to the lender. : : 4). You should probably get your own house inspection report, and working from that, better justify your lower offer due to the number and severity of the repairs you’re agreeing to undertake. Feel free to negotiate as if the seller was just a regular person. Making an offer prior to the lender getting the property back never seemed to help me any. : : 5). If it’s a good deal before the auction then it will never become an REO—someone will buy it before the lender gets it. : : Hope this helps. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2007, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455