Buying an REO property directly from the bank


#1

I was told that one strategy to obtain an REO is to wait and see if anyone bids on the property at trustee sale. If no one bids, it goes back to the bank as an REO. Then, contact the bank directly to see if you can buy the REO directly from the bank before they list it with a broker. Is this scenario valid?
I just attempted to do this today, and was told by the loan servicer that I need to wait for the property to be listed with a broker and appear on the MLS before they will look at any offers. I’m a Realtor, so I also asked one of our top REO listing agents in my office about this, and she said that many of the banks have changed their rules. That they will not sell direct and will require their REO’s to be listed with a broker first and displayed on the MLS. Have the days of approaching banks directly to buy an REO, prior to it getting listed with a broker, come to an end?


#2

I keep clinking on links and never get past this screen above. States I am watching this post, click to stop watching, but I am NOT watching and never was. What a waist of time!


#3

I would be interested in the same information also, as I’ve been told that some lenders would consider a direct sell to a buyer.


#4

i will like to get the same info please


#5

I did same thing and waiting for list.
Can you share the how to ?
Thanks


#6

I would like to get the same info please


#7

It will depend on the bank. It is true that some banks require the property to be listed before they will look at offers. This means that it must be assigned to an agent and listed. We have heard that Fannie Mae and Freddie Mac will entertain offers prior to listing. We have also seen properties sell without ever appearing on the MLS. It CAN be done with some lenders but it is going to be the perfect situation (bank is willing to look at offers, you have a qualified buyer ready to write an offer). The fact that it CAN be done does not mean that it is easy and the REO department is going to be receptive to your offer. This will require some tenacity, maybe some contacts and a REO department that has the authority to negotiate.


#8

Can anyone explain what is going on with the banks in NorCal. They seem unwilling to discount most properties at auction and then sit on them and are only releasing one at a time on the market. Even then not willing to negotiate discounts???


#9

I am real estate agent in the multifamily properties.2 years ago banks had lots of NPN inventory that the were for sale by the banks. The sophisticated buyers with tons of cash bought them and made huge profits.But those days are gone. As long as we have low low interest rates loans , the banks will be in control. When interest rates will go higher then we will see the real damages of the real estate market because of those low rates loans. It is a formula of creating an illusion giving low interest rates loans to people that down the road will lose their property.