Real Estate Owned (REO) is another way of saying the bank has taken position of the property
and now has the full right to put it up for sale. This means the bank is going to sell it for all or some percentage of the amount they have invested in it. The property has pasted through the pre foreclosure, foreclosure and redemption period and whoever the banks sells this property to, will be buying it *As-Is, *Where-Is*, pretty much like buying a used car. Once you own it , you own it, so I always recommend to my clients to have the home inspected by a professional home inspector. So why buy a REO property?? First, you are apt to get a better price on the home because it will most likely need some fixing up in most cases, but more importantly there is a good chance, but certainly not guaranteed, you could build a nice amount of equity in home over a short period of time. Get the advice of a professional real estate agent and have them do a complete market analysis for you before purchasing and definitely spend the money to get the home inspected. AND OH YES have some patience because banks are now under a lot of scrutiny not to give away these properties.
REO's are one reason why - All Real Estate is an Investment -
Right now in this market dealing with the banks in any respect is going to be challenging. Whether it is purchasing an REO property, short sale, or even getting a loan for that matter, we are all going to have exhibit a lot of patience. I know that doesn't help, but don't feel like you are being singled out. These are challenging times we are going through right now. It's no wonder that our financial markets are such a shambles these days when you consider how the banks do business. Hang in there.
Asset managers are not real estate agents. From my understanding with many banks, the seller's agent (agent for the bank) is working through a processor that in turn negotiates with the bank.
The BPO is really the important part of this puzzle. Ask your agent to send in your comps with your counteroffer to justify the price.
If you know someone that needs help with Real Estate, send them my way...Thank you email@example.com
"About 2 wks later he came back & said it had been countered at $625 K but that he didn't present it to us because it was still too high."
The *listing* agent is chosing not to present a counter???!!!???
That is wrong on so many accounts I can't even read the rest of the story.