MS-I, Home Buyer in Miami, FL

How do I buy a REO home?

Asked by MS-I, Miami, FL Wed Mar 12, 2008

Tried few times to see properties but no one was interested to show. Countrywide wanted prequalification, which I did but they would not let me make an offer on the property. No reasons given. It is as if they do not want to sell.

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MS-I’s answer
DO YOU READ?

Tried few times to see properties but NO ONE WAS INTERESTED TO SHOW. Countrywide wanted prequalification, which I did but THEY WOULD NOT LET ME MAKE AN OFFER on the property. No reasons given. It is as if they do not want to sell.

Nothing much has changed since - Now many agents do not show the REO properties to anyone except their friends and cousins. Scream all you want but there is nothing one can do, Want the addresses?
0 votes Thank Flag Link Wed Aug 18, 2010
Marlene covered it. Banks have an office specifically to consider and approve offers. In my market, and I suspect in most, they are collecting three or four offers before they send them to this office for approval, so you may be waiting 2-3 MONTHS for a response.
They will also require you to fill out their own addendums and disclosures, so yes, why not take advantage of free Realtor representation?
2 votes Thank Flag Link Thu Mar 13, 2008
your best bet with an REO home is to work with a realtor. Dealing with a bank can be lengthy and difficult, and you need to have a lot of patience. If you can give us more information, we might be able to be better help. For instance, I assume that Countrywide is the seller, you got prequalified as requested, but I don't understand the "wouldn't let me make an offer"--maybe they wanted it in a specific form? More information would be very helpful.
Web Reference: http://www.MykeTriebold.com
2 votes Thank Flag Link Wed Mar 12, 2008
Ms-I, I was with you until your #2, unless I misunderstood. You honestly think a Buyers Agent is for the Seller? Just so you know, the listing agent could also bring the buyer, it is called a Transaction Broker, and is quite legal here in FL, so if you think that is the way to go, call the Listing Agent and they can get paid possibly twice as much, I assure you that they won't complain. I can also assure you, every Realtor doesn't want to conclude the sale at any cost, this is why we negotiate the prices down as Buyers Agents. A great example of the advantage of having your own Buyers Agent, you wouldn't have to be posting your question on the internet, you could just call YOUR Realtor who would handle it. Lastly, sometimes it is who you know at the bank, as some of us Realtors can get you an answer by just calling the right person, in the right department. Good Luck
1 vote Thank Flag Link Fri Aug 8, 2008
It works the same as any other property. Any agent can write an offer for you.
1 vote Thank Flag Link Fri Aug 8, 2008
That's why alot of agents do not want to get involve. the banks are slow to answer, if they will at all. The agent has no idea what the percentage rate of payment will be, if any. You are better off working with an agent to find a good deal or find the house you want and make the offer you want. For every 10 rejections you probably will find a good deal.
1 vote Thank Flag Link Thu Mar 13, 2008
Thank you for your replies. To clarify - I did contact the realtors representing the banks. Most of the time - had to call them 2-3 times and leave voicemails before got to talk to them. Found them to be very reluctant to show the property. In case of countrywide - they took all the information, did the credit check send me a e-mail saying I was prequalified to bid on the property and never send the letter which was needed by by the realtor appointed by them. Finally I gave up. A typical stonewalling. On one hand they are drawning in the flood of properties but for some reason, they do not want to sell. May be accounting reasons - not wanting to take losses or just too demoralized staff.
1 vote Thank Flag Link Thu Mar 13, 2008
As others have mentioned, you really need a realtor to assist you, preferably one who has experience with foreclosures. It's really not that difficult to find a REO property, especially in this market. The process is relatively simple: you tell your agent what your preferences are, your agent sends you a list of properties, you narrow the list down to the ones you're most interested in. You and your agent go out and view the properties.

Best of luck to you.
Web Reference: http://www.DesariJabbar.com
0 votes Thank Flag Link Mon Aug 16, 2010
MS-I:

Many REO complain that nearly half the contracts they receive are either incomplete, missing signatures, missing pages, missing pre-approvals, or for some other reason unable to be submitted to the asset manager for review. So Please make sure you get everything that the Bank requires to consider your offer no matter how frustrating it is. Your Realtor will be able to guide you.

The two piece of advice I would give is:
1. You must usually make an As Is Offer on an ASIS FAR BAR Contract
2. You must offer quickly

Read more info here at my blogs: http://www.statelandbrown.com/app/sbblogs.php?id=081210
0 votes Thank Flag Link Mon Aug 16, 2010
Give me a call at 321-544-8017. I'll hook you up with someone who cares if you are serious
0 votes Thank Flag Link Mon Aug 16, 2010
Ms-I, you never sent me your contact info, so I didn't do a complete CMA, but what I have determined is that it looks like, to me, I would only recommend you to pay somewhere in the mid $900's for the 530 listing. The 625 listing isn't actually priced to bad, but I definitely wouldn't offer full. These suggestions of offer price could fluctuate either up or down, as we would really need to see them in person to determine what the condition of everything is in because one thing I have learned, the pictures always look better then reality, besides the fact and more importantly, you can't just price a home from the internet. Again, send me your contact info and I would be happy to help represent you, as your Buyers Single Agent, not as a Transaction Broker, which means I will be loyal to you and you only, obedient, and confidential with anything you tell me. Basically I will do and say whatever you ask, as long as it is legal, and my job is to recommend my professional opinion and guide you to a satisfactory end result.. Thanks
0 votes Thank Flag Link Sat Aug 9, 2008
Ms I, Give me a call or send me an e-mail. I'll get right to work answering your questions and getting you in to either of these homes. By the way, the listing at 625 Melaleuca looks much better in terms of value on paper. Thanks, and Call Me!! 904-894-6587, Jason Lindsay, REALTOR

drjml@hotmail.com
0 votes Thank Flag Link Sat Aug 9, 2008
Ms-l,

Try accessing http://www.linkedin.com

It is a site similar to trulia that identifies and rates professionals in the skill areas in which they work. Literally all professions are recognized. People generally do not include someone in their circle of contacts unless they have had a personal and positive experiences. This site also offers recommendations on each member.

It's worth a look.

Good luck,

The "Eckler Team"
0 votes Thank Flag Link Sat Aug 9, 2008
A Transaction Broker has the following duties, a couple I have simplified. But you basically become a go between and paper pusher, with no rep of either party.
1. Deal honestly and fairly
2. Account for all funds
3. Use skill, care, and diligence in the Transaction
4. Disclose all facts that materially affect the value of the property and are not readily observable to the Buyer
5. Present all offers and counters in a timely manner, unless directed by either party, in writing
6. Limited confidentiality, unless waived by either party, in writing
7.any additional duties that are entered into by this or any other seperate written agreement
I would be happy to look these properties up when I return home later today, as long as you haven't used a Realtor on either of them, but I can't just give you a number, without first researching it. Feel free to email me as well, direct. Thanks
Mike Ceparano, 813 417 6698
ceppym@yahoo.com
0 votes Thank Flag Link Sat Aug 9, 2008
Michael

So tell me - what are the responsibilities of TRANSACTION BROKER? What is he accountable for? What are his/her legal responsibilities other than making a phone call for $30,000 commission?

Here is a property - tell me what can you do for me? Like any Pro - you are the expert and I shall follow your advice. What price do I have to pay and what would be your responsibilities if you your advice turn out to be incorrect or wrong?




$1,295,000
530 Melaleuca Lane, Miami, FL, 33137 , 3 beds, 2.5 baths
http://www.obeo.com/Public/Viewer/Default.aspx?ID=385708&…

$1,272,500,
625 MELALEUCA LN, Miami, FL 33137 5 beds, 4.5 baths, 3936 sqft
http://www.westonfloridausa.com/HomesAndAgents/haaHomeSearch…
0 votes Thank Flag Link Sat Aug 9, 2008
Buying an REO property is an exercise in patience and frustration. If you are not a patient person you probably should look somewhere else. For unexplainable reasons the banks holding all these properties seem to be in no hurry to move them. Here are a few examples: one buyer I know offered $75000 cash on an REO listing which the asking prive was $83,000. The home needed $10-15,000 of repairs to be finished. The bank said "NO", no counter or anything. That offer was made over 6 months ago and that house is still sitting there waiting for another offer. Also, the banks tend to use one or two agents to often handle 100 or more listings. Clearly a terrible way to do business. These listing agents go to the house, take 1 picture and then never go back again. With this type of customer service it's no wonder the REO process is slow at best. These listing agents want you to get a Realtor who will do all the work of Listing and Selling the property. Also, if you do get a response from a Bank owned property you can be certain you will be asked to sign an addendum that favors the Bank in EVERY ASPECT! They often will reserve the right to sell it out from under you one day before closing if they get a better offer. These addendums scare away a lot of excellent buying prospects, if you don't believe me ask any attorney who has represented Buyers in Bank owned proceedings. Good luck, and get a patient Realtor to work for you.

P.S. I am currently representing a buyer in a pre-foreclosure transaction. We have been waiting 3 weeks to get a response from the bank --- nothing yet!
0 votes Thank Flag Link Fri Aug 8, 2008
Hi Kallen,

Thank you for a wonderful article.

1) We are cash buyers and can provide proof of cash in the bank and ready to close tomorrow. What is the retail value of a property. Merrill Lynch just sold the portfolios of foreclosed properties at 22cents on a dollar. Property priced $400K in 2000 was sold at $1.5 million in 2005 being offered at $1 million a retail price or is still overvalued? All the realtors are calling it a staggering $500K discount. or is it $600K overvalued?

2)there is nothing such as buyers agent. Every real estate agent wants to conclude the sale at any cost. Generally speaking, they are more concerned about having to deal with sellers agents again than the buyers so their loyalies are with the seller and leagally they are representing the seller not the buyer no matter how you put. This will only change when NAR allows the seller to list the properties for single commission. (not commission to be split between the agents.) There are no free lunches so the buyer does not have broker representation.

3) It is not about late night TV. People who watch late night real estate infommercials do not have a pot to Pi$$ in.

Having researched the market since posting the question - the answer is clear now. Banks are getting yours and my tax dollars so they can keep the houses on the books for next 20 years like they did in Japan. God help America! This is a election year.

When a $100K down payment pays back a million dollar returns in a year or two - your guess is as good as mine.
0 votes Thank Flag Link Fri Aug 8, 2008
Hello Ms-I,
My buyer just closed on a Countrywide property. It was a smooth transaction from begining to end. We got an answer within the time frame specified on the cotract. For this transaction, they required the realtor to sign up thru the processors site and make the offer. Everything was done thru their site. It was a breeze! Let me know if I can assist you with any questions.

Good luck.
0 votes Thank Flag Link Thu Jul 31, 2008
I wouldn't get too worked up over one house. I would let that one go. How to proceed in the future? It's best to work with an agent. If you don't have an agent, find several listings that you really like (on MLS, zillow, trulia, local realtor websites, etc). Check out the neighborhoods and everything about the house. Use trulia, zillow, google maps, drive by the property, drive around the neighborhood, etc. Once you find a house that you really like, call the listing agent and tell them you are considering an offer on the property and would like a walk-through. Let them know you are not working with an agent but would like to. Also, let them know you are a serious buyer, send them your pre-qual and make sure it is recent. Repeat this for about 5-6 houses if possible. If you follow this plan, soon you will have several agents calling you trying to sell various REO's to you. Good luck!
0 votes Thank Flag Link Mon Jul 28, 2008
You posted an answer on one of my questions. I am selling a condo in downtown in the Neo Wind building. You asked me how negotiable and I replied with make an offer. If you are still interested or no someone who is, I am willing to give 2% to anyone who buys or finds me a buyer. For any more information, email me at asuarez@ubventures.org
0 votes Thank Flag Link Mon Jul 28, 2008
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