Home Buying in Dupage County>Question Details

Grant, Both Buyer and Seller in Dupage County, IL

Buying an REO condo. What can I expect?

Asked by Grant, Dupage County, IL Tue Oct 26, 2010

The property has been on the market for over 100 days with zero offers. Started at $230k and took three price drops to $190k. The person that got foreclosed on smashed the place up (not to bad) and took all the appliances with him/her. I made an offer for $35k less then asking (as-is, asked for nothing else and included everything to show that I am a solid buyer). What can I expect?

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I have had answers back from the bank within 3-7 days on the recent foreclosures I have sold. The banks will either accept, reject or counter your offer. The banks already have an idea of what they want for the property. They will also consider market time (length the home has been listed), # of offers, concessions to the buyer if any (closing cost credit), etc..

Many of the banks include instructions on what they want included with the offer. Some banks ask that the closing takes place in 30 days with a cash offer and 45 days with financing. There are addendums that are required with your initial offer. Find out what seller costs you may be responsible for....survey (single family or PUD), back assessments, municipal transfer stamps, etc.. I recommend using an attorney and agent who are familiar with a foreclosure purchase.

Make sure your agent is staying in touch with the listing agent to keep you up to date on the process.

I hope this helps and good luck!
1 vote Thank Flag Link Wed Oct 27, 2010
I dont think you can get clean title from Chicago title ect. I don't think you will want to close on this until the Robo singing is cleared up.
Web Reference: http://www.chazwalters.com
0 votes Thank Flag Link Wed Oct 27, 2010
Based on the information you've provided, I don't think they will accept your offer. But, you never know. They will usually send a counteroffer, though. This will give you good indication of whether they are close to your offer or not. Hopefully, you have an agent who can assist you with countering the bank's counteroffer.

Please bear in mind that every 30 days the bank will review the comps and approve a price adjustment. If you and the bank don't come to terms now, perhaps you can wait until the next price adjustment and then resubmit your offer. They might be more likely to accept it then.

Best of luck to you!
Web Reference: http://www.DesariJabbar.com
0 votes Thank Flag Link Wed Oct 27, 2010
When I spoke directly with the listing agent he informed me that I am the first showing and first offer. I guess I am not willing to pay much more... Hopfully they just accept or counter.
0 votes Thank Flag Link Wed Oct 27, 2010
Depending on the bank you shoudl receive an answer in anywhere from 24 hours to five bsuiness days. You will find out how motivated they are to sell the condo by the intial counter offer you receive. the bank will either come back with a counter number or they will reject your offer completely. if they counter you be prepared to come up on the price. if they do not then you ahve to decide how much you like the place...

A few things you have going in your favor is that it has been on the market for over 100 days. And they ahve done a few price drops. Also, if you are sure the have not had any offers yet. For the bank this is a business transaction strictly. They have no emotion or feeling involved. So they look at the numbers and the variables surrounding the numbers (like days on market, activity, offers on the place, condition of it) and make a business descsion.
Web Reference: http://www.davedicecco.com
0 votes Thank Flag Link Wed Oct 27, 2010
I guess it is good that I only offered 18% under the asking price. Thanks for all the answers so far!
0 votes Thank Flag Link Wed Oct 27, 2010
Banks usually ignore offers that are less than 20% off their current asking price, unless the property is over 6 months on the market and you are paying cash... The other thing you need to know is that to close on a condo in Illinois, you may have to pay up to 6 months of past due HOA and attorney fees, as per 765 ILCS 605/ Condominium Property Act. Your attorney would tell you more about this recent law.
0 votes Thank Flag Link Wed Oct 27, 2010
You should expect to wait up to several weeks and sometimes months, as banks likely do things in their own time frame, but be persistent and don't give up. Few things to consider... Just because it is "as is" doesn't mean you can't get an inspection. You should get one to ensure you know what you are getting into. The bank won't fix anything, but you can factor this into your price decision. Your offer should have been contingent on inspection. There are a lot of other things to consider with condominium purchases regarding the associations, budgets, condo bylaws and regulations, rental possibilties, assessement deliquencies and especially your lender and what they will allow. Find out everything and read all the documentation.

Make sure you know everything before you leap. You will have to do this on your own, because the listing agent and the bank will likely provide you with nothing. They don't represent you. It is too late to get an agent involved if you have already seen the property and made an offer. It is always a good idea to use a buyer agent - it costs you nothing and you can benefit from their experience and represenation. But since you can no longer do that in this transaction, you should hire a good real estate attorney to help ensure your interest and you are going to have to do your homework. Get everything up front from your lender too. Condos are very strict with lending. Find out what they want to know and get all the documentation up front before you are locked into anything.

As a rule, and especially in this market, if you are looking to invest, make sure you know what you are getting into.
0 votes Thank Flag Link Tue Oct 26, 2010
I don't know who the lender is but I would expect you would see a counteroffer. Some lenders don't counter, they just deny. Some look at the offer and counter. Good Luck!
0 votes Thank Flag Link Tue Oct 26, 2010
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