Foreclosure in Chicago>Question Details

Jamie, Home Buyer in Chicago, IL

I just put in a bid for an REO property. I offered $4K more than they were asking. The bank of course is

Asked by Jamie, Chicago, IL Mon Jan 19, 2009

asking for cash or rehab offers. I will have a conventional 30 yr loan. If I offer more than the cash or rehab offers, do I get the property, or will they take the cash just to close the deal quick? Are they willing to take less?

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8
WOW!

Ever see the Rod Serling Episode about the Martians on Elm Street. Where the lights blink and the car starts and stops .

You have entered the Twilite Zone.

Geepers Creepers Mr Wilson ! Use an email address as your logon name and holy smokes -
No Martians here! M Soliman has a Trulia web page ....here ...yes, on Trulia. The site has his name and anything else you could ever imagine.

My confused and disgruntled cohort - are you a lender affiliate? No problem here! Is there a rebuttal to the facts as I have listed or perhaps you want to bring in some information to rebut the argument. Go to livinglies@wordpress.com read seek learn grow and then apologize!

I have countless situations where lenders (who are not lenders, so why are people calling them lenders) are moving fast to circumvent the Reator s and their clients sincere offer for short sales and modification offers.

Freedom of speech is a tough thing for some to accept in a free society. . . .Willfull negligence gone unchecked is somthing unacceptable period.

Peace
1 vote Thank Flag Link Sat Feb 14, 2009
Trulia needs to ban real estate agents from using the screen name of Administrator. It's inherently misleading, since the agent is obviously not an administrator on this forum.

In the meantime, I'd recommend ignoring answers from anyone using a misleading screen name.
Web Reference: http://yochicago.com
1 vote Thank Flag Link Sat Feb 14, 2009
All Excuses- get an attorney and sue the pass through investor like the investors are. The lender makes over 20% selling out to predetermined captured buyer they formed with a realtor syndicate or partnership- they can make over 20% TAKING THE LOWEST BID TO THEMSELVES MAKES MONEY - BUT THEY LOSE MONEY AT A HIGHER PRICE TO AN ARMS PARTY - WAIT 6 MONTHS AND IT WILL BE BACK- WATCH
1 vote Thank Flag Link Sat Feb 14, 2009
Your buyer's agent should be talking with you regarding all your questions. Of course it doesn't hurt to get outside opinoins. Here is mine - It is difficult to predict what the banks will do. The banks are still new to this business of owning so much real estate and trying to sell in this buyer's market.
I had a buyer who put in an offer (conventional financing, strong pre-approval, 20% downpayment) over the asking price on a bank owned house in the Midway area. The bank accepted a lower offer that was cash. That bank was more concerned that the deal close with no delays or complications associated with financing - it was worth it to them to accept an offer $10k below the higher offer.
I have another deal in the works that the selling agent listed the house substantially below market rate to get a bidding war - he recieved 20 offers. My buyer came in over $50k over the asking price (conventional loan, 20% downpayment), the bank accepted their offer.
Of course there are many bank owned properties that the banks are taking less than the asking price - especially if the offer is cash with quick close. My advise to my buyers on bank owned properties is to make the offer as attractive as possible - cash deal if practical, if not - strong pre-approval, sizeable downpayment, as few contingencies as the buyer is comfortable with, quick close, healthy earnest money.
Best of luck on your deal - hope it works out in your favor.
1 vote Thank Flag Link Wed Jan 21, 2009
Each bank and deal is different. Here is my advice- figure out who owns the property and then tell the listing agent you'll committ in writing to getting financed through that bank- also get them a pre-approval from them.

If you're very well qualified there's a good chance the bank will take your offer if you can close in 30 days or less even if you're not the highest bidder- i've seen it happen dozens of times!

If you need some free and candid REO advice I'm happy to help. You can also search for foreclosures free on my site.

Scott Newman
Newman Realty
0 votes Thank Flag Link Tue Jan 20, 2009
Typically, Jamie, in our market (Chicago) banks will ask for cash or rehab offers when they feel the property will not be approved for a conventional loan due to condition. Perhaps they even had prior offers that could not close because the buyer's lender rejected the property. Conventional loans will not allow for board-ups or properties that are not livable in their current condition. Like Lynn911 said, they don't care if the offer is cash or comes with a mortgage, but they do care if the deal can go to closing. Hope this helps!
0 votes Thank Flag Link Tue Jan 20, 2009
Hi Jamie,

It's difficult to answer your question without knowing all the facts. Banks can ask for cash deals only which can be frustrating for many buyers. Asking prices are often below market to entice buyers.
Have you asked the bank if they'd consider financing on the property if you went through them for the loan? If you're a strong buyer, the bank gets to sell the property but also can make up some of the loss over the life of the loan to you. A win-win situation. Have your Realtor ask.

Good luck, Ken Dooley.
0 votes Thank Flag Link Tue Jan 20, 2009
Your buyers agent should be assisting you. If you submitted an offer then lowered would not make any sense to bank. Banks dont care if loan or cash lender still nets the same amount. Offer bank feels more comfortable with property they will accept. Good luck
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Mon Jan 19, 2009
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