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Daime, Home Buyer in Montgomery, AL

Offer accepted for an REO property

Asked by Daime, Montgomery, AL Wed Feb 18, 2009

I placed an offer for an REO property (out of our state) that we really like. After two weeks, we finally got the offer accepted by the bank, but now the Realtor stated that she has been notified that the investor has to also OK'd the transaction. What are my odds of getting the house? I am a little frustrated since we were jumping up and down and now this investor thing came up.

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Here in CO you will see situations where an offer is accepted by an asset managment company then it will be sent to the investor who supplied the money in the first place for final approval. The asset management companies know and have a generally good idea what the investors will accept so if this is the case than it is just a formality, essentially. Here in CO, REO agents will consider the property under contract for the most part and then wait for the investor to sign off on it. This just means that they won't submit other offers which will benefit you guys. Many banks use asset management companies due to the vast numbers of properties they are sitting on.

Hope that helps. Good luck,.
1 vote Thank Flag Link Wed Feb 18, 2009
I have seen something similar in Grayson, GA, Daime, in a community which was foreclosed, but after one of the banks (this developer had four) went into receivership, an investor stepped in and bought 8 or 9 houses. He had his broker keep the properties showing as foreclosures on the MLS even though they were actually no longer REO's. One of my clients had a sent in an offer and received a counter-offer when we discovered this. Since she was financing through FHA, I could not allow her to sign & submit the counter because of the flipping rule, one part of which states there must be a minimum of 90 days between the investor's closing and our binding agreement date. Because of this, she did not complete the transaction and we found her another home. Hope it eventually works out for you and...Good Luck!
0 votes Thank Flag Link Wed Apr 22, 2009
Foreclosure purchases and short sale purchases is not for the faint of heart. Prepare for a process that will take anywhere from 3-6 months, depending on the volume of offers and deals that the lender is trying to handle. Banks got in alot of trouble making loans to anyone and everyone, and making loans on properties where appraisals were, well, suspect, at best. Now, in order to get all of us on the right path again they have to start doing things the right way - the REALTOR told you what is really taking place now - the banks are "pre-selling" these loans because they can't afford to get stuck with them after closing. Good luck.
0 votes Thank Flag Link Sun Feb 22, 2009
Daime,

I would say that the investor not accepting the offer is extremely rare. Here it is usually just a formality. Hang in there. I'm sure it will work out for you guys. Let us know when they sign off on it.

-Alan
0 votes Thank Flag Link Thu Feb 19, 2009
Daime - I wish there was a set method for dealing with REOs, your story is one of many and there's always a twist. Your best bet is for your agent to aggressively maintain contact with them and reiterate your ability and desire to close quickly. You often have to get obnoxious with these deals.

Hank Miller, SRA, ABR
Associate Broker & Certified Appraiser
Prudential GA Realty
678-428-8276
0 votes Thank Flag Link Thu Feb 19, 2009
Alan,

That is the case here, according to what the Realtor explained to me. Here is the deal, there is a bank (MidFirst) that has the property listed with a Real Estate Co. The guy that works at the REO dept at the realt estate company recieved the confirmation that the bank accepted the offer. My realtor notified me and we got very excited, then a few minutes later she found out by the same guy that the investor needs also to sign off. I am just praying that he or she will. I thought that REO's were just a bank deal, but it does not seem to be that way. In your situation that you have seen in CO, has it been a case where after the bank accepted the investor does not?
0 votes Thank Flag Link Wed Feb 18, 2009
Approval of investor? Do they mean the bank if its an REO only requires bank approval who is the sales offer as seller ?

ARE YOU DOING hard money lender? not a conventional loan? If hard money lender would need to approve their ability purchase home on your behalf.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Wed Feb 18, 2009
Daime,

If this is a bank owned REO there should not be anyone else involved with the acceptance of the offer but the bank.

Sounds like this could be a short sale situation or a pre-foreclosure.
0 votes Thank Flag Link Wed Feb 18, 2009
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