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Wilhelmina D…, Home Buyer in Philadelphia, PA

How do I find bank owned properties?

Asked by Wilhelmina Dixon, Philadelphia, PA Wed Aug 6, 2008

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Victor Kaminski’s answer
Honestly the best place you can find bank owned or REO properties are at the bank!

You need to find out who and what department handles the REO inventory properties.
REO stands for "Real Estate Owned"
Different banks have different names for their departments which handle them. Some larger banks have a division in another state altogether which handles them, best to ask the bank manager or send a letter to them telling them you are an investor looking to purchase properties and would like to be added to their database to recieve thier foreclosure lists.

These are properties that have gone through foreclosure and are now owned by the bank or mortgage company. This is not the same as a property up for foreclosure auction. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. And on top of all that, you'll receive the property 100% "as is". That could include existing liens and even current occupants that need to be evicted. A REO, by contrast, is a much "cleaner" and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. Do be aware that REO's may be exempt from normal disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of.

Is it a bargain?
It's commonly assumed that any REO must be a bargain and an opportunity for easy money. This simply isn't true. You have to be very careful about buying a REO if your intent is to make money off of it. While it's true that the bank is typically anxious to sell it quickly, they are also strongly motivated to get as much as they can for it. When considering the value of a REO, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well buying foreclosures. But there are also many REO's that are not good buys and not likely to turn a profit.

Ready to make an offer?
Most banks have a REO department that you'll work with in buying a REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS. Before making your offer, you'll want to contact either the listing agent or REO department at the bank and find out as much as you can about what they know about the condition of the property and what their process is for receiving offers. Since banks almost always sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. As with making any offer on real estate, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender. After you've made your offer, you can expect the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Realize, you'll be dealing with a process that probably involves multiple people at the bank, and they don't work evenings or weekends. It's not unusual for the process of offers and counter offers to take days or even weeks.

DON’T CHASE THE LISTINGS…MAKE THE CONTACTS!

--
Victor Kaminski
Broker of Record
Marivic GMAC Real Estate
2056A Lincoln Hwy. (Rt.27)
Edison, NJ 08817-3330
Office: 732-650-9911 Ext.302
Cellular: 908-884-5757
Toll Free: 1-866-745-GMAC(4622) Ext.302
http://www.MarivicRealty.com
http://www.realrep.com/
(MIDDLESEX MLS SEARCH) http://search.victor.msx.mlxchange.com/
(GSMLS SEARCH) http://www.gsmls.com/
(Monmouth/Ocean MLS) http://monmouthoceanmls.com/victor
http://www.homes.com/Agent/4243382/victorkaminski
http://www.trulia.com/voices/profile/Real_Estate_Pro-Edison-…
http://www.city-data.com/forum/members/victorkaminski-211209.html
http://www.realrep.com/Listing/DefaultListingSummary.aspx?Sh…
http://www.city-data.com/forum/3305497-post16.html
http://www.trulia.com/voices/Home_Buying/I_m_thinking_of_pur…
http://nls.point2.com/members/US/New-Jersey/Edison/Victor-Ka…
6 votes Thank Flag Link Wed Aug 6, 2008
You can look on my website. It has an MLS search.
1 vote Thank Flag Link Wed Aug 6, 2008
Hi
Typically thay are not all listed in one place, most are listed on the MLS which is then propogated through all other Realtor web sites. There is no special listing format, so it can be difficult identifying the Bank owned properties. If you have a realtor, they can see in the MLS the owners names etc, if this is a Bank name, then bingo! also, some listings say, Bank owned or Short Sale ( this is not a bank owned, but the bank would need to have approval on any offers)
Best thing to do is get set up with listing alerts and pour over them, looking for Bank as Owner or Short sales etc. You can do this on my website, or let me know if you would like me to run a search for you.

thanks

http://www.nodonnell.directmls.search.com
1 vote Thank Flag Link Wed Aug 6, 2008
How do i find a bank owned property if i don't know the bank that owns it?
0 votes Thank Flag Link Sun Mar 17, 2013
1. Check online on realtor.com
2. Good REO and bank of america' wells fargo' HUD and other bank names. Each bank maintains their own site and you can search each there.
3. Many are listed with agents and you will need to reach the "fine text" to know what's bank owned or not.
4. Just a note. Foreclosure/short sales/pre foreclosure are not bank owned and may take a year to close
0 votes Thank Flag Link Wed Jan 26, 2011
If you are looking for Bank Owned properties for sale in Ocean County NJ then this webpage is updated daily.
0 votes Thank Flag Link Sat Jan 22, 2011
I think that REO's are pretty easy to deal with. I just got my hands on one three months ago. Very cheap and the bank closed in 3 weeks. The closing process took 30 minutes. Victor gives great advice...Call the Banks. That is what I did. They all have different ways of unloading their inventory. Some banks give you a listing over the phone and others send you to websites. http://www.res.net is one. Various agents have REO properties. Just Google Philly REO and you will find a few agents who specialize in them.

Do your research...I found my property...pulled the info from Philly's BRT and Build (phila.gov)...cross referenced realtor.com...pulled recent comps....went to the area and called the listings close and near the property. This led to a 100% return on the investment.
0 votes Thank Flag Link Tue Sep 2, 2008
Odelia Aminov,

NO because that would not be true, ALL REO's are NOT listed with realtors!

Sure many are but not ALL and if you can get informed when they have new inventory even before it would be listed would you try to buy it at that point?

If you're an experienced investor, this would be the way to go but that's just my opinion.

Not taken the wrong way at all...

--
Victor Kaminski
Broker of Record
Marivic GMAC Real Estate
2056A Lincoln Hwy. (Rt.27)
Edison, NJ 08817-3330
Office: 732-650-9911 Ext.302
Cellular: 908-884-5757
Toll Free: 1-866-745-GMAC(4622) Ext.302
http://www.MarivicRealty.com
http://www.realrep.com/
(MIDDLESEX MLS SEARCH) http://search.victor.msx.mlxchange.com/
(GSMLS SEARCH) http://www.gsmls.com/
(Monmouth/Ocean MLS) http://monmouthoceanmls.com/victor
http://www.homes.com/Agent/4243382/victorkaminski
0 votes Thank Flag Link Fri Aug 15, 2008
any real estate agent can search REO or "bank owned" properties on MLS.
0 votes Thank Flag Link Mon Aug 11, 2008
Why a bank owned property? If you are an investor, or someone looking for a great deal, realtors certainly have their benefit. But, keep a look at the investors who are still in this market finding great deals that we either purchase or move to someone else. Let me know what you are looking for and I may have something for you. Fixer uppers to complete rehabs.
Web Reference: http://www.jprescue.com
0 votes Thank Flag Link Mon Aug 11, 2008
Hey Victor, don't take this the wrong way, but wasn't it just easier telling this curious homebuyer to turn to a local realtor since we have ALL listed REO's in our data base?? And if I did want to research on my own- sending a letter to the bank hoping they would even open it before throwing it in trash and randomly asking the bank manager do not strike me as the most effective way to get promising results. But that's just me.
0 votes Thank Flag Link Thu Aug 7, 2008
Great answer, Victor! THANKS for saying so well what needs to be said to unwary buyers.
Mim Heisey
0 votes Thank Flag Link Thu Aug 7, 2008
I have a 3br row for sale in Overbrook, not bank owned but still a good deal. Address is: 1049 N. 67st. Let me know if you're interested in getting more details! Your transaction could be much smoother working with my seller than working with an overwhelmed loss mitigation dept at a bank, getting lots of headaches but no results....
feel free to call 215-360-7573 or email Odelia@OdeliaAminov.com
Web Reference: http://www.odeliaaminov.com
0 votes Thank Flag Link Wed Aug 6, 2008
Agree with Nicholas, spot on.
0 votes Thank Flag Link Wed Aug 6, 2008
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