Foreclosure in Antioch>Question Details

David, Other/Just Looking in 94509

I have a question i put an offer on a Reo Countrywide home, i am already preapprove with countrywide they

Asked by David, 94509 Wed Feb 6, 2008

were asking 459,000 and i send a offer for 430,000 and me paying for closing cost, the listing agent send the offer on 4/4/08 at 2pm my time 4pm countrywide time (eastcost) have not hear anything back, do you think if they did not like my offer they would had told the listing agent by now. my is the only offer right now.

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You should say this instead.... I have a $100K and want to get a great deal. Here's the truth about foreclosures...

FORECLOSURE REALITY CHECK.... Seasoned investors who buy foreclosures know the REO manager at the bank and get "off market" deals. They never have to bid or find a place to learn what's available.

FOR ALL OTHERS: The only "sellers market" in america is the foreclosure market. Don't expect any deals from a foreclosure as the bidding process brings 20-30 people to bid on almost every deal. A deal that was already priced at market. For government foreclosed homes, by law, they have to be priced "at market".

The REO manager has a short list of "cash/close in 2 day buyers", they always get the first right to bid. Then they have to wait for the "public auction" Which drives up those prices. After a 30-60 day period. Then the REO picks the best bid. Sometimes, only sometimes does a REO manager take a property directly to a buyer he knows peronsally. Why should he, he has a bunch of people bidding and driving up the prices.

My REO manager friend likes to joke about all the "first timers" who continue to drive up the bid when they don't hear anything from the bank. Every time I see the "how come I haven't heard from the bank about accepting my foreclosure bid after 30+ days" on trulia, I have to let out a chuckle because he's so right. For those newbies, this is real. They know that when you don't hear from them that a large percentage of people drop a second or third offer higher than the previous one. **WARNING, YOU ARE BEING TAKEN ADVANTAGE OF HERE**

You want a deal on a property right, everyone wants that.... So the moral of this story is:
1. the 60 days you have to wait to hear from a REO, you could have made 2 or 3 better deals with a property that has been on the market for a long period of time. Any realtor can help you drop a crazy offer.
2. You are attempting to make a deal in a house covered in a cloud of bad energy, don't be surprised when it rubs off. Personally I stay away from these for this reason entirely.
3. One way to get a deal is dropping a hand written note on ANY house in a neighborhood you want to buy that says "my girlfriend and I want to buy a house in this neighborhood and yours looks cute from the outside. Do you know anyone that is looking to sell?" I always get responses, better prices and positive energy into the home.
0 votes Thank Flag Link Wed Feb 6, 2008
Thank you very much Brendan, you information was really helpful
0 votes Thank Flag Link Wed Feb 6, 2008
Yes my agent put down 3 days for a answer. What would happen after the 3rd day would my offer be no good any more?
0 votes Thank Flag Link Wed Feb 6, 2008
Hi David,

I don't think 3 days is unreasonable. Even on a great offer, it might take 3 days to respond when the Buyer and Seller are in different states. I wouldn't be too concerned just yet. I would also ask when the offer expires? While "time is of the essence" the expiration date of an offer can certainly affect how long they will take. Did you give them 3 days or longer? Maybe they are considering it and haven't made up their minds yet. Or maybe the listing agent hasn't been able to contact them yet, or just did so yesterday, etc.
There are lots of possibilities, all you can do is hope for the best!
Good luck, I hope you get it!

Brendan Murphy
Broker, CRS, GRI, ePro
Raving Real Estate
Laramie, Wyoming
0 votes Thank Flag Link Wed Feb 6, 2008
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