Home Buying in Las Vegas>Question Details

Mrcool, Home Buyer in Lake Las Vegas, Hend...

Can I buy the Bank-owned(REO) Property directly from the bank(lenders) before the property was put on the market?

Asked by Mrcool, Lake Las Vegas, Henderson, NV Sat Aug 21, 2010

I am a paid member of the realtytrac. I noticed that most of the Bank-owned(Reo) are not for sale . Are there any ways I can buy these Reo property directly from the lenders before these property become the MLS#. ? Some of these Reo property not for sale in MLS# until a year or longer Once they were put on the market ,it become harder to win the bidding war THANKS mrcool

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I suppose technically you can, but good luck is all I can say. First you will have to find the bank. I know that sounds easy, but it's not. There is usually an entirely different department for REOs and it is not prominently displayed on the bank's website. And sometimes the mortgage is held by a smaller bank, which can be difficult to find at all. And on top of all that, sometimes the banks sell their 'bad debt' to one another even after the home has been foreclosed on, so you may not even have the right bank!

Then you have to get the right person at the bank's REO or Asset Management company to talk to you, anothjer Hurculean task. I know I've tried. And, more than likely they are going to tell you to wait until it's lsited with a realtor. You might be able to get them to tell you who the realtor will be when the time comes, then contact that realtor and keep in touch with them. Have your offer ready as soon as the property comes on the market and keep following up regularly until the bank makes a decision. And don't expect them to act quickly. In our area REOs can sit on the market for a year or more as the bank tries to minimize their losses waiting for a better offer to come along. A bidding war is exactly what they want!


I understand your frustration. A lot of the banks are holding onto these homes so as not to flood the market with REOs all at once. You might also try to find a realtor who has represented buyers of REO properties such as There was an interesting article posted by RIS Media just yesterday. I think you can link to it here.

http://rismedia.com/lowes/8355/9791

If you are a typical home buyer, not a real estate investor, you may want to work with an agent to find a short sale property or a 'fixer upper' they may actually provide a better bargain!

Good Luck, let us know how it goes.
2 votes Thank Flag Link Sat Aug 21, 2010
Hello,

As a REO listing agent in the area, I think I am qualified to to answer this. The only way to buy a foreclosure before it goes REO, is through a trustee sale at the county courthouse. When the previous homeowner gets the foreclosure notices, he will also get a sale date. Those dates are posted at Nevada Legal news, and on thate date a bidder can show up at the courthouse downtown and bid on the property. There are some hurdles though. One you have pay cash. In addition you have to do your research, such as run a title search on the property, to find out what types of leins there are, because the winning bidder inherits the leins. Usually you will have back taxes and hoa dues, sewer, and trash. On top of that you have to run comps, to make sure you are not overpaying, and also you have to make sure you are bidding on the first mortgage. The last thing is right now there are alot of bidders at the autcion, so you will have competition from the other bidders. It is risky but if you do your homework you might be able to get a good deal. If the bank does get a bid high enough that is acceptable to them, then the property reverts back to them, then they contact their agent in the area, and they list it as an REO about a month later. I hope this helps, and if you have any other questions, please don't hesitate to contact me directly. I represent buyers at the auction for a fee, and also specialize in finding REO properties for buyers.
1 vote Thank Flag Link Sat Aug 21, 2010
Banks are understaffed and have no mechanism for dealing with the public.


David Cooper Investing in las Vegas since 1994
FREE REO Foreclosure List httP://www.ladsvegaswinner.org
702.499.7037
0 votes Thank Flag Link Fri May 31, 2013
Why would you want to do this? There are a lot of risks:

1. You also own all previous liens to the property
2. You have to pay all cash (no leveraging using loans)
3. You must pay any and all outstanding fees and expenses
4. You compete with other bidders. You can actually win a bid so high that there's little room for profit.
5. It is very time consuming and you really have to know the entire process in and out.

Instead of doing it yourself, I recommend you hire a pro who is a veteran at bank-owned properties and trustee sales. You pay them a fee for representation. There are several of them in Trulia.com.
0 votes Thank Flag Link Fri May 31, 2013
No. On a onesy twosy basis they go through real estate agents. If you are willing to raise 500,000,000 I can get you in front of a bank but your portfolio will look like something like this:
Trailer in Kansas, SFR in TExas, Condo in NM.... etc. it will be all over the map and can be any type of residence. You will not be able to specify area or type. Now if you have a couple of Billion to spend than I can direct you to President Obama and Fannie Mae and Freddie Mac. ; ) Phil
http://WWW.LAS-VEGAS-REAL-ESTATE-HOME.COM
0 votes Thank Flag Link Tue Feb 19, 2013
Banks have agent do a BPO before deciding to do anything. Those market comps set the price for the REO and are close to market


David Cooper Investments and Property Management
http://www.lasvegaswinner.org 702.499.7037
0 votes Thank Flag Link Tue Feb 19, 2013
No. On a onesy twosy basis they go through real estate agents. If you are willing to raise 500,000,000 I can get you in front of a bank but your portfolio will look like something like this:
Trailer in Kansas, SFR in TExas, Condo in NM.... etc. it will be all over the map and can be any type of residence. You will not be able to specify area or type. Now if you have a couple of Billion to spend than I can direct you to President Obama and Fannie Mae and Freddie Mac. ; ) Phil

http://WWW.LAS-VEGAS-REAL-ESTATE-HOME.COM
0 votes Thank Flag Link Tue Feb 19, 2013
What kind of property are you looking for? The discount deals from short sales are as good or better than anything directly from the bank. Remember, the bank REO department has had an agent due a BPO and knows exactly what repairs are required. The REO manager will NOT give away a valuable house. The quality of a short sale and the discount available is definitely a better way to go.

David Cooper Investor/Landlord
http://www.lasvegaswinner.org
0 votes Thank Flag Link Thu Jan 3, 2013
Yes. Go to http://repofinder.com/reofinder for big nationwide bank listings.

For local banks and credit union listings go to http://repofinder.com and select your state.
0 votes Thank Flag Link Thu Jan 3, 2013
yes, there is if you are interested you can contact me at loankingdoms2@yahoo.com
0 votes Thank Flag Link Thu Sep 2, 2010
Hi Mrcool

These all are good responses.
I hope to help by adding a little more insight.
Banks (as I understand) hope to recoup about 2/3 of market value, plus their expenses. Many sites you go on will have homes listed which have already been sold or given to a Realtor to list.
While not an impossible task to find the owning bank or business, it's like finding a needle in a haystack-- not impossible but a potentially painful task.
I'd recommend finding a good Realtor with excellent followthrough, to set up an automatic search for you with your criteria, and then when homes show up with your criteria, but much lower dollar per square foot, you may have found a foreclosure or a short sale. Yes, these homes may not have as deep a price cut, however this way you will have more protection by having the representation of your buyer's agent/Realtor.
In my area, the buyer can legally have his own title company representing the buyer. sometimes you may be able to have this option. (Check with your attorney for your local laws.)
Saying all that. I'm of course familiar with my own area. Ohio is a buyer beware state.
Please Check your own state and local laws before purchasing!
Good luck in your hunt.

Sher Wenowitz, ABR, CNE
330-518-1791
http://www.SoldBySher.com
Realty Home Pride
Youngstown & area, Ohio
0 votes Thank Flag Link Fri Aug 27, 2010
HI Mrcool,

As with the previous answers the banks usually will not deal with individual sales. They do not and are not geared up to have thousands of people calling them to purchase homes. There is also a reason many bank owned properties are not on the market yet, and that is because the banks do not want to flood the market anymore than it is and drive prices down even more. The banks list there properties with agents because there is more than just selling them involved. The listing agent has to check out the property, sometimes evicted people, clean out the trash and mess, have repairs made, ect. before the home is ever ready to list for sale. Your best bet is to get a good Realtor that understands the process of purchasing REO properties that are listed. The most important thing after finding a home you like is understanding the fair market value for that area. A lot of REO agents list their properties under market value in order to get multiple bids. It you don't know what the actual value of the home is worth, you will under bid everytime and loose out. Your Realtor can best help give you comparables sales for other properties in that area which will give you a good ideal of what you should offer, not what the property is listed for. With any listing, it can be over priced, under priced or actual priced well. It you don't know the actual market value you are going in at a big disadvantage. Also the cleaner a REO offer is wrote up the better chance of getting it excepted. Just remember the Las Vegas market is already at 50% or ore below market value from prices 3-5 years ago. The market has been fairly stable for the past year so in todays market most buyers know what a home is worth today. It you try to under bid the todays comp. values you will probably lose the offer everytime. I hope this helps and if you have any additonal questions please feel free to call. I am Short Sale Certified and have a REO Specialist Designation.

Darrell Cypert (R) SFR, RSD
Realty One Group
10750 W. Charleston Blvd. Ste 180
Las Vegas, Nevada 89135

Cell: 702-249-3365
Fax: 702-396-2243
E-mail DarrellLV@cox.net

Web: http://www.DarrellsellsLV.com
0 votes Thank Flag Link Sat Aug 21, 2010
Hi MrCool,

Robert's got a great understanding of REO specialty market. Good persons to contact for the Auctions; as he says.

Also, the banks may hold off on listing a property as they have a maximum amount of properties they allow themselves to release at one time, as releasing them to quickly will depreciate the market greatly. If you are simply worried about the bidding war, it's not something to be worried or stressed about! You just have to know the right agents who know how to make offers and negotiate! It's all about the price.

My personal specialty is representing investment buyers in todays market; focusing on rentals and long-term returns.


--

Sincerely,

Mark D Fleysher, MBA, Broker, REALTOR
The Jack Conley Realty Group
C. 702-291-8186 F. 702-946-0843
0 votes Thank Flag Link Sat Aug 21, 2010
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