EVERYONE is right; however, some important issues have not been addressed. I am an REO specialist in Metro Atlanta, meaning, I work for the banks. In this current market your biggest hurdle regarding purchasing REO listings is your Financing.
How are you going to pay for it? Are you getting an FHA, VA or Conventional loan product?
Why does that matter? It matters because the condition of the home will affect your ability to secure financing. Some Houses will not qualify for 97% (formerly 100%) financing due to the condition of the home (copper wiring stripped from the walls, AC Unit destroyed, hole in the sheetrock, cracks in the driveway). Your Lender will be able to advise you as to the restrictions of your mortgage type.
Do you have a minimum loan amount? There are homes for sale in the Atlanta market priced below $30,000. There is a limited number of Lenders who will fund loans below $50,000.
Do you currently have a mortgage in your name? If so, you will be hard pressed to find a lender who will not require 20% Down as an investor.
Lastly I invite you to review my Foreclosure Buying Guide which is posted to my website, the link is posted below. If you would like to download a copy via email visit http://www.gofreereports.com Unlock Code: 332499. The report will appear in your inbox.
Your primary objective is to get a Nice Home for a Good Price so don't limit yourself to REO. There are a lot of MOTIVATED SELLERS in today's market, bank owned or not.
Good Luck to you!
It takes a while for them to get through the process and to be put back on the market, but once they are listed for sale the process for buying a REO property can be very fast. It is not much different time wise than dealling with a normal homeowner.
Sometimes the banks may want to wait a while and see what kind of offers they get, sometimes they move very quickly.
If you find a property that you like and if the numbers make sense, often times the bank will be quick to respond. They will however require additional paperwork to be executed so it's best that you have an attorney or competent and experienced agent (someone who has actually worked in the REO market)
Fore more information on bank foreclosures visit my blog for a lot of information on buying foreclosures and bank owned properties.
Everything hinges on how responsive the lender is, and how good your offer package is. You may only get one shot at this, so make sure you submit your best and highest offer, and that your package is complete with your preapproval letter, copy of your initial deposit. In some cases, the lender also asks for information on the buyer's FICO score. To further expedite the process, you should state this is an AS IS offer. Sign all the disclosures if they're already provided, and submit these with your offer.
Depending on the degree of completeness, you may even be able to get an answer within 1-2 weeks(which is totally different from short sales that may take upwards of 45 days to get a response!).
Sometimes, the highest offer doesn't always get accepted. If the terms are good (like shorter or no contingencies, shorter escrow, higher initial deposit, higher down payment, etc), a lower offer may beat a higher offer.