Missy, Home Buyer in Campbell, CA

A couple weeks ago, I put an offer in on a REO. While waiting to hear something, I found the house listed on

Asked by Missy, Campbell, CA Sun Apr 5, 2009

an Auction site that says it is coming up for auction on the 25th. The listing agent said it was a mistake to be on the auction site. Open house for the upcoming Auction was this weekend. I went to see if it was open, no one was there, but big Auction banners were plastered all over it. My agent can't get ahold of the listing agent. What is up with my offer? Shouldn't I have heard of something before it being up for Auction? I don't know if I will be countered by the Bank or what. I don't know if I should up my offer. My offer was low because there was alot of work needed- it was below the asking price..

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Answers

5
Missy both Kieth and Dp2 gave some good advice. Let me explain a little bit about this the Asset Manager which you will be UNABLE to contact, heck the reo listing agent has trouble sometimes getting in contact with the manager. First up sometimes the asset manager contacts an auction company like REDC before the property is listed or if it is taking a long time to sell, or if the bank wants this property sold quickly. There are other reasons but those are a few. Second what you need to know about auctions is that the open houses they have are for you to bring your inspectors to them as THAT is your inspection period time. You buy the property as-is with no inspections after that, you also will not be alowed to bid on the property unless you bring a cashiers check to the auction when you register. It can be anywhere from $5,000 to $25,000 depending on the auction.( if you go to there site they will let you know how much it is.) One more thing there is most times a minimum bid requirement which means the bank will turn down offers lower than that.
Ok, as far as your offer on the property goes, have your agent make sure there are no " Special Instructions" from the listing agent. These instuctions need to be followed otherwise they will NOT turn in your offer and they won't let you know it either.!!! Next have your Realtor email them if he cannot get them on the phone, as a lot of REO listing agents don't take phone calls so email is your only option. If you are still not getting any where check to see if the property is still active and with the SAME listing agent,( sometimes asset managers take listing away from some agents and give them to another brokerage agency ) Then have your agent read the confidential notes and follow instructions and SEND YOUR OFFER IN AGAIN and AGAIN if you get no response, you should get some kind of response after that.
I Hope this helps you abit.

Regards,
Allyson
1 vote Thank Flag Link Mon Apr 6, 2009
Keith is corect. This is a secondary--not a foreclosure (or sherrif's)--auction. (Actually, that's what REDC specializes in.)

Besides, contacting the asset manager handling that property, you could also contact someone from REDC to find out how to present your offer before that property goes to auction. Additionally, assuming your offer is a fair one, then most investors (the primary ones who'd be interested in this kind of property) will bid a price similar to yours. So, even if it went to auction, you might still end up with the property; you just need to make sure that you know that the asset manager has seen your offer.
0 votes Thank Flag Link Mon Apr 6, 2009
hi,
this was on the MLS when I put the offer in. It had not gone to the Auction yet. The site I saw it on was REDC (auctions.com). I should have had a legitimate offer in before it ever got there. It is called a Public Lender Foreclosure auction
missy
0 votes Thank Flag Link Mon Apr 6, 2009
This a public auction not a foreclosure auction. These do not happen often but has happened in the past when instituions have had lots of assets and want to sell a lot of them fast.

I have not dealt with an auction for a long time. However, if you are trying to beat the auction for a chance for this property I would not fool around, offer what you think it is worth. That way you may get it and if you do not you still have a chance at the auction. The reason why you may not get a response is that there is a prep work that the bank needs to put together for the auctioneer. They have to determine what is the lowest price they will accept and also decide if the property will be an absolute auction property (a property that has no minimum bid , so what ever the bid is it will sell for that). This process usually requires the bank to have a special project to collect all this data and work with the auctioneer to establish plans for the final day.

So when you make an offer on one of these properties the bank processor needs to find out the policy on taking properties out of the auction.

So if you play games with your offer the bank will most likely let it go to auction instead of dealing with your offer. Think it the way they are thinking about it, I have already worked with the auctioneer and might have to pay them for that property , why take this offer and pay the auctioneer and the listing agent? Unless they feel they are going to get more money than in the auction, most likley they will let it go to auction.

Good Luck
0 votes Thank Flag Link Mon Apr 6, 2009
Hi Missy,

I'm confused. An auction usually means that that it is up for the Sheriff's auction for foreclosure - which would mean that it isn't REO (bank owned) until after the auction - assuming that the bank gets it instead of someone else.

I suppose it's possible that an REO property can hold it's own auction, but usually they list the property for sale. Can you clarify? What's the auction site and MLS or other listing #?
0 votes Thank Flag Link Sun Apr 5, 2009
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