Home Buying in Chicago>Question Details

Bertho, Home Buyer in Chicago, IL

I am very upset ! i send an offer to a property that was from Chase bank , they called a Reo property ...i dont know whats mean My offer was rejected

Asked by Bertho, Chicago, IL Wed Jul 10, 2013

I am upset ! my offer was rejected and i dont think my agent did something wrong ... i was doing some research over the internet and i found this video ...CAN THIS BE TRUE ???? PLEASE ADVISE
http://www.youtube.com/watch?v=qF4N3m4SrFU

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Answers

21
REO = Real Estate Owned/Bank Owned...the bank foreclosed on some poor homeowner who for whatever reason could not continue making their mortgage payments.

Cash buyers will beat an offer involving financing about every time, even if the offer is higher than a cash offer. The banks have already ordered an appraisal so they know if offers are high or low and that's how they know if a financing offer requiring an appraisal is higher than appraised value. They know if your higher offer is inflated just to get accepted.

They can close a cash transaction quickly, days rather than weeks, and there is typically no appraisal that could affect sale price. Banks, as with any seller, can reject appraisal value and put property back on market seeking a cash buyer. It happens.

REO's are tough. Buyers tend to get very frustrated when they keep losing out to cash buyers. There are many variables in the home purchasing process. Don't give up hope, just make sure you're receiving the proper info and guidance before continuing your home search. Best wishes for success! :)
1 vote Thank Flag Link Wed Jul 10, 2013
REOs are often a source of disappointment for buyers. When you put in an offer you need to remember certain things. Cash is preferred, quicker closing date is preferred, owner occupant gets first look, all offers must be submitted with either a pre-approval or proof of funds. Even once you have submitted an offer the agents will keep shopping for bids and only one buyer can be chosen.
REOs usually get many offers as they are for the most part low priced real estate. You have to be sure that you are giving your best offer to get their attention, even then you will suffer multiple rejections.
Good luck
1 vote Thank Flag Link Wed Jul 10, 2013
looks like the seller obtained terms more favorable to their liking
0 votes Thank Flag Link Sun Jul 14, 2013
Whats mean? Tonto, Mean banks don't want own house, no more.
0 votes Thank Flag Link Sun Jul 14, 2013
It DOES matter if the offer is cash or financed on an REO. Every one of my financing buyers lost to cash buyers even when their offered price was higher than list price. The only exceptions have been when there were no cash offers. Financed offers typically have more contingencies, like appraisal and home inspections as two of most common, and take 30 or more days to close. Cash buyers usually have fewer to no contingencies and can close in a couple of days. Why would banks not take the better terms of a highest and best cash offer over a more risky financed offer that takes much longer to close?
0 votes Thank Flag Link Fri Jul 12, 2013
If they liked your offer, it doesn't matter if it's cash or amortization. Did your agent help you determine the bank's lowest permissible price that can be offered for that property? Different loans have different limits.
0 votes Thank Flag Link Fri Jul 12, 2013
Bertho,

This market is very competitive right now. Multiple offers are becoming more the norm vs an exception. There were probably many offers and the bank (seller) simply chose not only the highest bid but more than likely also considered the terms, i.e. cash vs financed.

It happens, move on and find something else rather than upsetting yourself.

Good luck!
0 votes Thank Flag Link Fri Jul 12, 2013
Yours most likely was not the most favorable terms for the seller
0 votes Thank Flag Link Thu Jul 11, 2013
This is a foreclosure.

These are very very competitive. You probably got outbid.
Web Reference: http://Americorpre.com
0 votes Thank Flag Link Thu Jul 11, 2013
Real Estate Owned (REO) means its a foreclosure. There was likely multiple bids and yours was not chosen. This is common. Speak to your agent about how to be more competitive in the future.
0 votes Thank Flag Link Thu Jul 11, 2013
Bertho,
Obviously, you are a schill whose purpose is to promote the cartoon, which is alright by me. (cartoon had 201 views when I looked. do you think the low count is a coincidence?)
The cartoon, which is NOT where I normally turn to get guidance based on facts, is very entertaining and worthy of ackknowledging for its entertainment value and creativity. Exactly what one would expect on Trulia...ENTERTAINMENT!
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However, it is the classic 'truth-married-to-a-lie' situation. There is sufficient reality to make it beleivable but under the hood the premise falls apart.
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Two weeks ago I DID meet with Chase bank, with a member of their second tier staff that oversees their REO and morgage efforts. Things are a mess a Chase. However, the cartoon did correctly identfiy the REO agent is being the manipulator of the outcome. And the cartooon does correctly identify the 'Big Banks' as being exempt from nearly all accountablity.
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If only they had a cartoon providing instruction for packing a parachute. Who could you blame after the splat?
0 votes Thank Flag Link Thu Jul 11, 2013
Hi, I hope the video is not true!
You many have to put in several offers on different properties before you land one. The market is very aggressive and generating multiple offers on properties again.
The REO site, http://www.homepath.com/, explains the process.
Best of luck!
0 votes Thank Flag Link Thu Jul 11, 2013
Great video... some true, some not however if you want an REO property find one through http://www.homepath.com



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0 votes Thank Flag Link Wed Jul 10, 2013
REO=Real estate owned (by the bank). Your offer was too low or you had some other term that was not acceptable to the bank, like a prior sell contingency or a closing day too far out. The rejection letter might spell it out, or your agent can ask their agent for more detail. There is nothing stopping you from putting in another offer, as long as the property is still available.
0 votes Thank Flag Link Wed Jul 10, 2013
Hahaha I really enjoy the video !! That's pretty good
0 votes Thank Flag Link Wed Jul 10, 2013
Thanks for the video link. This of course is an exaggeration of a lot of frustration many buyer and buyer agents have with REO agents. There are some good REO agents and some bad ones. There could be underhanded deals going on, but like the cartoon, I would rather deal with an honest agent. A crook is never going to be loyal to you.

HUD and Fannie mae foreclosure properties are done through an online bidding system, so there is very little chance of any kind of problem. It is frustrating. This is a frustrating market. REO's are often difficult to deal with, but with the help of an honest agent, you can get the home you want and feel good about it. You just need to keep plugging - buying in this market is a good idea and worthwhile and sometimes worthwhile things are not always easy. Good luck.
0 votes Thank Flag Link Wed Jul 10, 2013
REO simply means the bank has taken the home back at foreclosure. If you offer was rejected it was either too low, did not have a pre-approval letter or you had too many contingincies. These days you have to make your best offer up front. Banks usually do not counter, it is up to you to make a good offer and not ask for anything
0 votes Thank Flag Link Wed Jul 10, 2013
It may take many attempts to get one of those bargains.
0 votes Thank Flag Link Wed Jul 10, 2013
It sounds like you are quick to listen to a Cartoon, but not your Agent.
Did you think that when you submitted an offer that the waters would part for you and you would get everything?
You shouod go back to watching cartoons.
0 votes Thank Flag Link Wed Jul 10, 2013
I did not look at the video, but offers often get rejected on REO property. The banks are very particular what they will accept. Keep trying.
0 votes Thank Flag Link Wed Jul 10, 2013
Everything is possible, but keep on looking and try to find another property that meets your needs.

Many buyers, fewer sellers = many rejected/dejected buyers
0 votes Thank Flag Link Wed Jul 10, 2013
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