interested in a REO property in Campbell CA. what should I do?

Asked by Stooge, 95008 Tue Sep 21, 2010

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14
Rebekah Owen,…, Agent, San Jose, CA
Tue Feb 15, 2011
Stooge,

[what a great user name :-)]

How'd you do? Did you get a super duper deal in Campbell?
How'd the process go?
Was is smooth sailing or was there a bottle neck?

I like to hear how clients view the market. It helps me allay their fears and avoid problems.

Thanks in Advance,

Rebekah
RebekahOwen.com
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Sat Jan 8, 2011
Happy New Year, Stooge.

Not sure if you have already purchased or still in the learning process.

I am a Certified Distressed Property Expert and you can get a list of
available REOs and Short Sales at my web site.

http://www.ruthandperry.com

Call if you need help.
Ruth
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Thu Sep 30, 2010
Most won't agree, but I would find an REO Buyer's agent to help me in the transaction. These people know how to handle offers on REOs better than others, and they know what the best ways are "not" to write offers. Typically they can be found at offices that list several REO properties.

The only thing these agents do is write offers on REO homes. They are constantly busy because they are good at what they do.
0 votes
Gilbert Rich…, , Santa Clara County, CA
Thu Sep 30, 2010
Talk to your realtor and come up with a game plan. It is really that simple.
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Sun Sep 26, 2010
Hi Stooge

It becomes very important to work with an agent who can negotiate the best deal and terms for you once you have understood the pros and cons of the house you are buying after inspections.

Also the agent should be able to arrange for you to get excellent loan rates.

Let me know if you need any help At 408-656-5343.

Perry
Web Reference:  http://Www.ruthandperry.com
0 votes
David Chiles, Other Pro, Los Angeles, CA
Wed Sep 22, 2010
Thank you for your question about finding REO properties in Campbell, CA. Please be advised that many lenders post their REO properties on their websites with the contact name and number of the listing agent, therefore, you can look at the REO listings online if you are interested.

I suggest using a good local agent because they can provide you with more information and protect your interests as a buyers agent.

Bank America, Chase, and Fannie Mae all post REO listings on their websites.
0 votes
Andrea Wince…, Agent, Milpitas, CA
Wed Sep 22, 2010
Hello Stooge, I see you've listed yourself as both a buyer and a seller. If you need the money from the old home in order to buy the new, first you should get your old home listed for sale. Nobody (REO or otherwise) is going to accept an offer to purchase from you contingent upon the sale of the old property. Second, you need to have a preapproval letter from a DIRECT lender to buy most REO properties. A direct lender is not a mortgage broker who goes out to find you a loan from another bank. Direct lenders are a bank who underwrite and fund their own loans. Additionally, many REO/bank owned properties require that you prequalify with them (or their preferred lender) in addition to having a letter from your lender. I have a relationship with a direct lender. Email me if you would like me to send you their contact info. Kind regards.
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CJ Brasiel, Agent, San Jose, CA
Wed Sep 22, 2010
Stooge -

I agree with points below. I would add:

1.) The bank produces an addendum to your original offer that indicates contingency periods are passive and not actively removed. In other words, on said date, period of time, contingency drops off. Incredibly critical to appraisal and loan contingency periods. You can try to pad contingency periods in your offer but assume seller will agree and will impose their normal 10 (at max 14) days contingency period.

With new RESPA 2010, that means a minimum of 3 days for good faith estimate (After you receive the preliminary title and closing fees (From the Southern California escrow company that is never in a hurry.) and on average 7-10 days for an appraisal. You can see how time lines get tight quickly.

2.) The addendum may also take away many of your contractual protections. For example verification of property condition prior to close, and standard closing cost paid by seller as below and "time is of essence" clause. That is why it is best advised not to place more than a minimum deposit on the property (normally 1% of sales price).

Some bank sellers/listing agents are reasonable and can be worked with during the contract. So many times escrow is in Southern California is a big delay for moving papers. As mentioned, bank sellers sign papers on their time, whether or not that puts you in jeopardy on a per diem charge.

Good luck,
CJ
Web Reference:  http://www.TalkToCJ.com
0 votes
Norman Aless…, Agent, San Jose, CA
Wed Sep 22, 2010
I think Grace covered the main points you really do need a good agent when purchasing an REO. I would like to add that the lender you choose is very important to closing the deal. You have to realize that lending and appraisels have changed and are much slower, so you need a lender who understands REO purchases and has an in-house underwriter. This is important as the areas that are slow are appraisels and getting the loan OK'ed threw the underwriter.
I have lenders that understand this and I have closed many REO deals with them. If you need assistance feel free to contact me .
Regards,
Allyson
408-705-6578
allyson@homesbyallyson.com
DRE# 01397256
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Sep 22, 2010
Stooge your best bet is to hire a buyer broker, you can usually do so at no cost to you, they get paid their commission from the fee advertsised in MLS by the listing agent and paid at closing. This way they can get the information on REO listings in your area and they can assist you through each step of the buying process for bank owned propertie swhich is much different from conventional homes.

for a complete list of tips and advice, please see my blog..
0 votes
Grace Hanamo…, Agent, Cupertino, CA
Wed Sep 22, 2010
Stooge:

You can certainly purchase the home by yourself, but I would strongly suggest (especially in a short sale or REO) that you work with an agent. There is always the infamous "Addendum A" that must be followed to the letter by the buyer of the REO property, and you should be advised by a professional regarding both the advantages and the pitfalls of buying a home that is owned by a lender. Here's some of the things to watch for:

1. The seller (hereafter "bank") will not provide any disclosures to you as the buyer to review
2. The seller will not make any repairs to the home and provide no warranties to you. Your only recourse if you find problems with the home is to cancel the contract.
3. The seller will require that you purchase the home "as is."
4. The seller may not (and probably will not) pay for any closing costs
5. The seller will require that you use THEIR choice of a title company or else pay for all associated escrow and title fee charges
6. The title company used by the lender may NOT be local and you'll lose both time and money in couriering packages to and fro
7. The seller may take as much as 2 weeks to approve your sales contract and may also leave it open ended so that another buyer (with more money or better terms) can purchase the home even after you've been approved as the buyer
8. If there is an HOA involved, the Seller will NOT obtain any documents from the HOA for you. This is more critical than you know since many HOAs are financially devastated by excessive bank foreclosures
9. Some banks are better to work with than others
10. If you don't close on time, the bank will charge you a cost PER DAY for delaying
11. You will need to close and sign documents first, and it can take the bank up to 1 full week to execute their papers. In the meantime, the buyer is paying for interest on the loan.
12. If the home does not appraise for the purchase price, the buyer has NO recourse to changing the price.

These are just a few of the problems that can occur in the purchase of an REO home. Again, working with someone who has this knowledge is critical to making a sound financial decision.

Good luck!! Call me if you need any additional assistance.

Sincerely,
Grace Morioka, SRES, Realtor
Area Pro Realty
Email: GraceAreaProRealty@att.net
Tel (408) 426-1616
0 votes
Bart Marchio…, Agent, Mountain View, CA
Tue Sep 21, 2010
Hello Stooge,

My best advice for you is to interview a few Realtors who work in the Campbell area. You want to determine which of those agents will do the best job in these three areas:

1. Guiding you through the process of buying and selling a home by listening carefully to what's important to you, and then giving you advice based on your desired outcome, and helping you make good solid choices.

2. Negotiating the best deal for you, making sure you get the best possible price for your old home, and the lowest price for your new home.

3. Overseeing all the details of the transaction with accuracy and promptness. Making sure the transaction is performed diligently is so important in today's real estate market.

After interviewing a few agents, select someone who you think will do the best job for you and represent your best interests throughout the process. Then you should evaluate the REO properties on the market and make a choice about one to put an offer on.

I would be delighted to tell you more about me and my team and show you how we work and see if it's a good fit that we work together to accomplish your goals. You can reach me at 408-420-8270 or by email at Bart@MOREConsultants.com

Best of luck!
-Bart

Bart Marchioni, Real Estate Consultant
Certified Pre-Foreclosure & Short Sale Specialist
Keller Williams Realty – Silicon Valley
Lic# 01385188
0 votes
Terri Vellios, Agent, Campbell, CA
Tue Sep 21, 2010
If it is a specific property, get yourself an agent.
Web Reference:  http://www.TerriVellios.com
0 votes
Louis Stone-…, , Santa Clara County, CA
Tue Sep 21, 2010
Step One:
View a COMPLETE List of Campbell REOs here:
http://www.mycampbellhomevalue.com/Site/campbellvalue/campbe…

Step Two:
Call me at 408 348 4026 to arrange to view any home on that list.

I am hassle free no pressure.

I look forward to meeting you.

Best,

Louis Stone-Collonge
0 votes
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