Home Buying in North Port>Question Details

Richard Cioc…, Home Buyer in Outside U.S.

why are reo's taken off market then put on again by banks?

Asked by Richard Ciochetto, Outside U.S. Wed Feb 23, 2011

It seems that sometimes a home will be taken off multiple times.
Are they playing games?

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Alot of times the homes are taken of the market temporarily because there is a problem with the title, this is sometimes caused by a mistake made during the foreclosure process, I have had this happen on several homes I have had listed, it can take as little as a couple of weeks to clear up and I have seen it take up to 6 months. I hope this helps.
0 votes Thank Flag Link Tue Mar 22, 2011
No, Asset Managers for banks are emotion less, it's pure business, no games.

What can and does happen is a neophyte buyer and his realtor may make an offer on a bank owned that clearly has work that will not allow it go FHA so they can't get financing because banks will rarely lift a finger or pay any costs to make repairs... it comes back to "active"...

A buyer gets a contract and ends up not being able to qualify because they didn't correctly factor in all of the monthly costs, i.e. HOA/Condo fees, property taxes, flood insurance, hazard insurance etc... Comes back on the market..

Another scenario is the unscrupulous law firm hired by the lender to foreclose allowed fraudulent paperwork by "robosigners" so they are not able to get title insurance to complete the sale to the next buyer so it has to be "taken off the market" while they "re foreclose".

If you want to find the best bargain, make sure you make your offer on a bank owned the first day it comes out on the market and if it's already a significant bargain at full list price, don't try to nickle and dime or make an offer much below asking or you'll miss out..

Hope this helps.

Alma
0 votes Thank Flag Link Wed Feb 23, 2011
It happens in my area a lot and it's because the home is under contract and then falls apart and back on the market it goes. Maybe it is somewhat unique to my area because we are an area of thousands of summer rental homes used as investments. These homes can make a fair amount of money, for their owners, in the summer months so buyers jump on them. The previous buyer let the house go into foreclosure and that is why the bank now owns them. Unless there was something wrong with the house, or it has some risk associated with it, the previous owner would not let a money marker get away. When the next buyer looks into the home with inspections and studies the costs involved to upgrade it, they often change their minds and walk away or the lenders decide they don't want to risk and won't loan on the house. Being here next to the ocean makes that very common.

So it could be the house going on and off the market.
0 votes Thank Flag Link Wed Feb 23, 2011
I don't see that happening much in my area... it may appear to be going off the market because you are looking at third party websites that use different language and less accurate information as our listing service provides. What you are most likely seeing is a listing period running out.. we called that in the business "expired listings". Non of the sights that are not MLS sights use that language. They show an expired listing as "off market." It's simply that the home did not sell. The bank re-lists the home. Sometimes with the same agent, and sometimes with a different agent as Suzanne stated below. It all depends on which bank and what their policies are regarding how long they allow an agent to keep a non-selling listing. The home is generally not selling because the bank is trying to get too close to appraised value and doesn't realize the condition of the home either. No one is willing to pay appraisal value in this market, especially when those values continue to decrease after the purchase. Once the bank's list price becomes low enough, then we normally see an offers and many times, multiple offers. Also, another valid reason a home goes off market for a period of time, is because in some instances the bank hires an auction company to liquidate several assets at once. The home becomes unavailable during the auction period. If a home doesn't sell at auction, then it is returned to the listing agent to sell again. As far as playing games.. banks are not doing that, they aren't that smart. I wouldn't give them that much credit. They are in the business of lending money and they have shown us they have done that poorly for the passed 10 years. Now they are a new business of selling real estate, of which they know nothing about, and are proving they are even more clueless when it comes to that. Throw in short sales.. now we have a real mess on our hands. Welcome to the US housing market in 2011.
0 votes Thank Flag Link Wed Feb 23, 2011
Banks are strange actors these days. They are trying to minimize their losses, however, they don't really know the real estate market and often the asset managers (like many homeowners) hire real estate experts but then do not listen to the advice for which they are paying. So, they over price the house, then blame the realtor when the home won't sell. And then they allow the listing to expire and hire a different realtor thinking that will make the difference and get the home sold. It won't. There are certainly differences between realtors, as in any business. Some have a better marketing plan, some just plain work harder, but one of the biggest factors in getting any home sold is price and if the homeowner, whether it is an individual or a bank, will not price the home correctly no amount of hard work or marketing skill will get it sold. I have watched banks chase the downward spiral of home prices, all the while blaming anything and anyone other than their refusal to price the home according to market conditions, only to lose huge amounts of money.

The other factor, in our area at least, is the "days on market". Many homeowners, once their listing has become 'stale' will withdraw and relist their home in order to reset the days on market clock so the listing looks fresh. It doesn't really fool anyone, but it makes the homeowner feel better.
0 votes Thank Flag Link Wed Feb 23, 2011
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