Home Buying in Roseburg>Question Details

Hannah, Home Buyer in 97479

How do you get info. on a REO that is not listed w/ a broker yet? County records indicated it's bank owned. Bank was no help when contacted.

Asked by Hannah, 97479 Wed Dec 30, 2009

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Good advice from Kim.

Since you know the property address, have your Realtor run the comps on it. He or she will be able to go into the MLS and pull up the information from the last time it was sold--the complete listing and description. Admittedly, you don't know what the condition inside is. Assume it's below average--assume it's in worse shape than a conventional sale. Still, you can come pretty close to what its true value is.

BoA will have a BPO (like an appraisal) done on the property. However, BPOs often aren't accurate. If you're lucky, the BPO will be under what the real value is. What'll happen is that when the bank's ready to put it on the market, it'll likely price it around the BPO price. Then, if it doesn't sell at that price, it'll steadily reduce the price until it does sell.

Your number is: What is the house worth? Not the $242,250. First, it wasn't "given back to the bank." It was never the bank's to begin with. Second, that's not the full amount of the bank's expenses in the house. There are also legal fees, carrying costs, etc. Third, realistically, if the home was purchased in 2005 or 2006, it's likely that it was a 100% mortgage, and that values have declined since then. So, just a guess, the house is worth substantially less than $242,250, even though the bank's total investment in it may be up around $275,000.

The only thing you care about is: What is the house worth. That's it. Period. Then you make an offer at or below that figure.

Sounds like you got some decent advice from the broker who deals with the BoA properties. However, I'd strongly advise that you find your own agent. Someone with experience with foreclosures, but a buyer's agent who'll represent you. The broker you talked with will (if he gets the listing) have a fiduciary responsibility to BoA.

Hope that helps.
1 vote Thank Flag Link Thu Dec 31, 2009
Don Tepper, Real Estate Pro in Burke, VA
In the vast majority of these cases, you have no option but to wait until the mortgage company/owner cycles the property file through their process. This can take weeks or months, then they will list it for sale, on the open market, with a real estate broker with whom they contract and it will hit the local multiple listing service. Align yourself with an experienced buyer broker, who works actively in the foreclosure portion of the industry, and have them alert you when that, and/or other comparable properties, hit the market. First and foremost, if you haven't already, you'll want to get your pre-approval secured for a mortgage; in all cases I've been involved in the mortgage company/owners of foreclosed properties will not even consider an offer unless said pre-approval is in place.
1 vote Thank Flag Link Thu Dec 31, 2009
Hi Kelly ,
Thanks for your continued help in looking into this property. I hadn't found any information that linked the property to Washington Mutual/Chase. This is good to know...
Best New Year wishes to you as well.
0 votes Thank Flag Link Sun Jan 3, 2010
Hello again Hannah - I've checked all my asset management companies that I list REO's through and am not coming up with anything on this property either. I think you mentioned this belonged to BofA - but property tax records are showing it's now owned by Washington Mutual/Chase. I checked my sites for them as well and still no luck. I'll keep watch and let you know if I find it.

Have a Happy New Year!

Kelly Gebler, Broker
Keller Williams Realty
0 votes Thank Flag Link Fri Jan 1, 2010

You have gotten some good answers already, in fact, some of the best I've heard regarding this subject. Be sure you select an agent in your area that specializes in the foreclosure market. The agents below are a good example of what you want to hear from the agent you hire....It sounds like you have had your eye on this property for quite some time and have become attached to it. Good advice to get pre approved if you haven't already so you can jump on it when arrives on the market. Good Luck
0 votes Thank Flag Link Thu Dec 31, 2009
HI Kelly,
Thanks for the reply. County records show that the home was given back to Bank of America on Aug.18, 2009 for $242,250. I called the BoA headquarters in Texas, and they were not able to locate the property. The address is 1585 NE Rocky Dr. in Roseburg, Oregon. I have also contacted the local broker that deals w/ BoA and he hasn't received any information on the property yet. His reply was that sometimes properties get lost in limbo.
A few questions:
How long does it take to see a property put on the market? Is there any way to contact the bank to prompt a response? Knowing how much money the bank is into the property...where do you think the asking price will fall?
THANK YOU for you help and advice.
0 votes Thank Flag Link Thu Dec 31, 2009
Hi - I list REO's - they go through various stages before they land with a Realtor to put up for sale. Many times I get them in as little as 24 hours after the bank takes them back, even then it can takes weeks before they are on the market. Sometimes they show up on some of my sites I belong to in advance to tell me who the listing agent is going to be. If you'll give me the property address and the bank that took it back - I'll see what I can find out for you.

Kelly Gebler, Broker
Keller Williams Realty
0 votes Thank Flag Link Wed Dec 30, 2009
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