I have had experience making offers on Countrywide REOs. Each transaction is a case by case basis and my clients have chosen to stick to their guns as far as pricing. Frequently we've missed out in multiple offer situations. So no successful closed transaction on a Countrywide REO but the commonalities have been:
1) always need a preapproval from a countrywide loan officer
2) in a multiple offer situation you often need to sign a disclosure form saying you're aware you're in a bidding war
3) always have come back to each offer asking for highest & best
4) so far it's been min. 2 weeks response time, more if there's a holiday
5) they have always stuck very close to their list price and offered no counter (the ones I have worked on).
I don't know the list to sale ratio because for countrywide reo's, but based on those I've worked on it's above 95%. I enjoy working with both educated buyers and investors (my background is investment analysis). Link to profile is below if you need contact info. Please call or email for references.
However - despite how REO's work - short sales are nowhere near as organized. Short sale departments are a mess. They seem to not care to weigh the quality of the buyer - ever. Sometimes they wont even ask for a pre approval or proof of funds. In fact, I am truly starting to belive that they are in so much chaos they rarely actually read the contract. The hud is the only thing that they seem to pay attention to.
The bank cares about one thing and one thing only - their bottom dollar.
It is up to the listing agent to select the most qualified buyer, and that -at least to me- is the one with the least contingencies, the ability to wait, and the strongest financing (cash and conventional will always trump).
I doubt you'll find any data as to % of asking price. The bank doesnt set the asking price therefore they have no responsibility to meet any % of that number. The number they will use to determine an acceptable offer is how the BPO or appraisal comes back to them. Thats their gold standard for negotiations. Unfortunately they will rarely tell you what that number is ( although from their counters you can usually gather how it came back).
The nightmare begins............I had a survey done (thank God). I noted the address on the survey differed from the one on the sales agreement, as well as the MLS listing. It turns out that 911 services renumbered properties in the area in 2006 and Countrywide failed to reflect the correct address in the listing. Thus, I submitted an addendum to the sales contract. Countrywide's Asset Mgr refused to sign it stating "he was tired of signing things." This was finally resolved after a week of phone calls and emails.
Next, and better yet, is the fact that my survey also revealed that the prior owners only deeded 1/2 of the land back to Countrywide (it is a 2 acre property and they deeded back one acre......the acre WITHOUT a house). Whoops...Countrywide just overlooked the little typo in the legal property description. Despite my agent bringing this to their attention 3 weeks prior to closing, they have informed me 1 week prior to closing that the closing will have to be delayed for a month or two to get this resolved. Although this is an egregous error on their part, they have a careless attitude about it. This may result in a 3 to 4 month closing process. If this property wasn't such a good deal and my heart set on it, I would tell them where to stick this whole deal in 2 seconds flat. It is no wonder that this companny just about went down the tubes. Unfortunately, Bank of America is doing nothing to change their less than stellar operating practices. Thankfully, this is a vacation home and not a primary residence so the delay in closing isn't as critical (just irritating).
If your planning to live in this house for many years then I bid you good luck. Hope the credit frezze doesn't last much longer.
> for the bank. I recommend that you think of saving more
> for the downpayment or choose a property where you
> would be placing more than 20% down.
Michele Peters, Esq:
Please re-read my question. Youâ€™ll note that I stated we have *more* than 20% down.
I had a long response penned but throttled it back in case we run into each other some day at SDNY.
Countrywide has been notorious for not doing short sales. REO's are different and an easier approval process however it will be done by "committee" and the strength of your credit rating and finances will be important. I always recommend that you use a good real estate attorney to intercede on your behalf.
You have 20% to put down - that not the strongest offer for the bank. I recommend that you think of saving more for the downpayment or choose a property where you would be placing more than 20% down.
Show them the money!
Good luck in whatever you decide.