FloridaBound, Home Buyer in Orlando, FL

Looking for an investment property (SFR). How do I find out when an REO will be for sale?

Asked by FloridaBound, Orlando, FL Fri Aug 19, 2011

There are homes that are listed as REOs but are not yet for sale. Is there a way to learn when?

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Answers

8
This is an interesting question, there are homes that are bank owned but have not yet been assigned to a Realtor for sale. It seems there is a bit of a limbo time from when the bank takes the home back via foreclosure and when it comes on the market for sale. The time varies by bank and some smaller banks are now outsourcing the home out to a property management company and renting it out.

This limbo state varies as I said but before the bank lists the home for sale they have to do many things first, make sure its not occupied (aka cash for keys or an eviction), get broker price opinions (BPOs) and formal appraisals and then assign it to an affiliated Realtor. This Realtor lists the home at the bank approved price and thee Realtor takes on the utilities and any repairs needed to obtain the best offer possible.

I digressed a bit, there is no real answer to when a home that is bank owned will come on the market and at what price. I do have access to a foreclosure site and can tell you when a home is going up for auction and even what is sold for if it sold (90% of auction sales are postponed).

I look forward to talking with you and answering any other questions you may have,

Brian Wilson, Realtor
DRE# -1321478
949-933-0852
1 vote Thank Flag Link Fri Aug 19, 2011
There are other ways besides REO's. One suggestion would be Notice of Defaults (NOD's). Feel free to contact us for more information. Contact joseph@arendsengroup.com. We'd be happy to work with you as we are rehab contractors, investors, developers and property managers as well and are always looking for ways to expand our investment pool and portfolio.
0 votes Thank Flag Link Sat Aug 20, 2011
For the most part, no. The info you can get from bank websites generally is in regards to their active inventory. There are also websites to identify what property has been bought back by bank and is now REO, but that won't tell you when the property will come on the market. By the way, a brand new REO listing may not be offered at the best value. REO's tend to come on the market at market value or (in my opinion) a little higher. The nice thing about them is that if one is not selling the bank will order regular price reductions so you might get better pricing on an REO that's been sitting. You say that you're an investor. Are you looking to rehab and sell, buy low and sell high, or turn the home into a rental? I know of some SFR rentals in OC with positive cash flow, that can be had at a slight discount but not enough to flip. Give a little more info and I will gladly give a response as to he best why for you to proceed ( at least in my humble opinion).
0 votes Thank Flag Link Sat Aug 20, 2011
There is no way for us to know which SHADOW INVENTORY REOS may actually be under contract with a listing agent, prior to them coming on the market, in the MLS as an REO property. It is plausible that an REO listing agent has taken the REO listing, but the bank is cleaning up or fixing up the house for sale.

I can give you a list of the mountain of bank owned properties, but that is not going to do you any good. There's no way to tell when the property is going to come on the market, because the banks are trickling in this inventory to control pricing in the marketplace.

The best way you can go about getting into an Investment property you're happy with is to define the specific areas you can afford & want to look in. Once we've narrowed down those specific areas, then we can dissect what's on the market, be it an REO or a short sale or otherwise, do the comps & figure out, at what price can I get one of these that would be the best deal.

If there isn't one ON the market that looks like the best possible deal, then I'll talk to you about how I can Make one available where we can get a lower price.

Email me directly if you'd like to discuss my strategy further. Don't send me @ msgs here on Trulia, as I don't look back on this same Trulia thread for answers after mine, send me a msg. directly.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors
Distressed Property Expert
0 votes Thank Flag Link Sat Aug 20, 2011
Hi Florida Bound,

There are several ways to get info on pre-list REO properties. Like web sites mentioned below, However; some if not most of the info to the public is miss leading. UN-less you know the right websites to go to. If you need or would like more info on how to look for and find distressed properties in the orange co. area you can call or email me or go to my website and contact me there.

Make it a great day and good luck,
0 votes Thank Flag Link Sat Aug 20, 2011
There is a way to get comparable weather the REO is a good price or not.
REO is not always the right price. Comparable prices are needed to determine the
property is properly listed.
0 votes Thank Flag Link Fri Aug 19, 2011
If you have a particular property in mind, yes. If you don't have a particular property in mind, yes. There are a handful of asset management companies and direct lenders that hold the bulk of the current and upcoming REO inventory. Most of them have websites dedicated to the general public. See link below for one such site. On those sites you can typically find out who the Realtor and even the loan officer is for that particular asset. One of those real estate industry professionals should be able to shed insight into the particular details of the home you're interested in.
Web Reference: http://reo.wellsfargo.com/
0 votes Thank Flag Link Fri Aug 19, 2011
Once a home has been foreclosed upon it may take a while to hit the market. If an investor purchased the home at a foreclosure sale, the investor may be renovating it, leasing it or quickly turning it over and putting it on the market. If the home goes back to the bank, it may take time to evict the residents. It could take several months. Each home is different and has to be investigated.
0 votes Thank Flag Link Fri Aug 19, 2011
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