Home Buying in 95630>Question Details

lookingincal…, Home Buyer in Sacramento County, CA

Can I just walk into a bank and speak to the REO officer about houses for sale? Will I get a better deal?

Asked by lookingincalifornia, Sacramento County, CA Tue Apr 28, 2009

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A little more insight....

In many cases, the loan servicer doesn't own the property; and banks, in general, do not employ real estate licensees and a real estate license is required to sell properties other than your own. The exception would be that in many states, attorneys are able to do this, although they can not market the properties in many states.

Aside from the legalities involved, properties owned by banks that have stockholders, boards of directors and are gathering up bail out money (who, in turn must answer to the federal government and subsequently the American public) are required to show that they are marketing the property to the highest number of people and negotiating the best deal possible to reduce their financial losses. The way they do that is to list it with a real estate agent for a traditional marketing/listing.

Hope this makes sense.
1 vote Thank Flag Link Wed Apr 29, 2009
No- they can't help you that way- for many reasons- a lot named below.

In addition- the banks are so over burdened now- could you imagine the pandemonium if people were walking into banks- and trying to buy homes from the branches? Keep in mind- they are bankers, not realtors!

Find a good agent in your area- they can help you to find the best deals- and protect your interests!
1 vote Thank Flag Link Tue Apr 28, 2009
In most cases the answer is no. Even when the loan was made by a local bank, usually the ownership of the loan was sold to an investment group, so generally the bank that made the loan, perhaps Wells Fargo or Chase, have no financial interest in the loan any more. Even when the loan is owned by a bank, the asset is managed either by a department or 3rd party company that is separate from the local branches and even the local lendinig offices. Even then when the loan is handled out of a branch, almost all banks list almost all properties with real estate agents to handle the inquries that come from potential buyers. While it cannot hurt to do your own research, if you are interested in buying bank owned properties I think you are going to be more successful using a professional agent that knows the local bank inventory as well as their process to get the home or homes you want to purchase.
1 vote Thank Flag Link Tue Apr 28, 2009
I have sold many REO properties and it has been my experience that banks give their REO Properties to a qualified REO Real Estate Broker. My Broker recieves many foreclosed properties and we as Professional Real Estate Agents help our clients understand how the process works. I am able to utilize my negotiating skills and get the best price for my clients. REO's are not the simple process many people think they are. It takes knowledge to handle a successful REO transaction from beginning to end and each detail must be addressed for the correct outcome and successful purchase.

One question to always ask your REALTOR is how much experience do they have in dealing with REO's?

Hope this helps and good luck in your search. There are many good deals on REO's currently and now is the time to take advance of those deals because the market will turn and the deals will be gone.

Linda F. Reeves-REALTOR-GRI-SRES
ERA Millennium Realty
0 votes Thank Flag Link Thu Apr 30, 2009
Let me suggest a better alternative that might help you. First, just because a bank owns REO properties, doesn't mean that you would WANT the ones that they have. So that doesn't meet your objectives.

If you want to know about REO homes that are ones in locations, have amenities, and are in the price range that you are interested, get on a client portal and learn about your market and the values in general. Work with a buyer's agent to look at the properties and learn why the difference in pricing. (Consider yourself Alice in Wonderland...because it's quite and adventure going through bank owned homes in varying levels of disrepair from the previous owners...). If you have exhausted the market of homes currently on the market, then you and your realtor can move on to explore homes that are not currently listed.

By being specific about your needs, what I do with my clients is search for foreclosure homes that have the right location, size and amenities. We determine the bank that owns them, drive by the property to see if it's vacant and the general condition, and then we contact the bank.

It is a long arduous process even then, but much more efficient than the approach that you're considering. There are alot of homes that have not been released to the market.....yet.
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Wed Apr 29, 2009
Tia,

While you can't really walk into a bank and make an offer, several banks and loan servicers do have websites listing the properties they have for sale. And some of those have options for buyers to make offers directly to them. They also will show if the property is listed and who to contact. If it is not already listed with a real estate broker you could possibly pay less due to the fact the bank would not be paying a commission.

However, you are probably better off having a real estate agent represent you. A good agent will advise you on the pros and cons of each property you are considering, let you know the current market value of the property(just because it is an reo does not mean it is priced right) and structure the offer to make sure the bank would consider it. Here in my area banks are pricing homes below value to get multiple offers.
0 votes Thank Flag Link Wed Apr 29, 2009
Tia,

Good try.

If those bankers are smart like this, then they would not get the trouble like that.

Avarice and greed lead them to today's dilemma. Bureaucracy is keeping them getting deeper in the dilemma. I do not know who can bless them. Maybe, is it federal goverment as the money printer?

Anyway, you can not. At lease, in CA, you can not. One of the reasons is because any REO department is not in local branches.

Andy
0 votes Thank Flag Link Tue Apr 28, 2009
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