Do banks holding REO make any concessions in financing in order to unload the property?

Asked by Gina, Pogol Tue Oct 28, 2008

For example, if someone with good income but not-great credit made a good offer, woudl the bank entertain financing to get the REO off its books?

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5
Sandra Mathe…, Agent, Grand Junction, CO
Tue Oct 28, 2008
I have sold quite a few REO's and have found (and been told) they will pay up to 3% in closing costs to the buyer and that is it. I found that to be true with the offers that were successful and the ones that were not. Some buyers mistakenly think the bank will accept a low ball offer. The banks are pricing the homes lower than the market and therefore they stand behind their price. I have closed two REO's in the past two weeks and the sale price was within $3K of the asking. One was a Freddie Mac (FHLMC) and it was a total nightmare. Freddie Mac signed up a new title company out of California, Harmony Escrow that in my opinion charge outrageous fees. Purchase price $148,500, title insurance for buyer was $427.00; escrow fee $1700. Had my buyer been able to choose the title company (as Nevada law stipulates), the fees would have been title $230 and $575 respectively. All total, the fees exceeded the good faith estimate by almost $2000. To make it work, each Realtor gave up $750 each of our commission and the lender gave up $400 plus 7 days of interest rate lock at $38 per day while we re-did the closing sheets. I have contacted the attorney for Nevada Assoc. of Realtors to see what recourse we have. I will ask her guidance about putting a limit for these fees in future offers. Buyer beware!
Web Reference:  http://www.SoldOnFernley.com
1 vote
Rande Joihns…, , Irvine, CA
Tue Nov 16, 2010
From the Harmony Escrow:
With regards to the escrow fees in the state of Nevada, we audited the fees charged by several companies in the state. We found a majority of them charged a fee much higher than the contracted fee we charge.
As the owner of the company I find it strange that people would rather place random and anonymous comments on a blog instead of just lifting up the phone and making a quick call. If people are unhappy or unknowledgeable about certain aspects of the escrow business, I suggest they act in a professional manner. Our company closes over 800 escrows per month and has been rated as one of the top closing agents in the western United States. The operations manager has over 20 years of escrow experience and I have been in the business since 1978. The business of escrow has changed greatly in the last 10 years and some people believe the escrow officer is to blame when a transaction fails to close. Recently we have found a majority of the problems are centered on poor communication and the lack of quality training from the other professions involved in closings. My goal has always been to have all those involved in an escrow transaction to work together. There has been too much bad news about real estate, let’s work together to change the image.
If you need to reach me during the week please feel to contact me at (949) 252-8300 or (949) 660-0050. Rande Johnsen
0 votes
Stephanie Yo…, , Nevada
Wed Nov 4, 2009
Dear Harmony Escrow,

The purpose of my email is two fold. I want to commend you, and your office in the job done processing this closing. My experience has been exceptional.


Sincerely,
Stephanie York
Realtor Pro
0 votes
Ron Bell, Agent, Reno, NV
Wed Oct 29, 2008
Hi,

The REO dept. works independent of the lending dept. and they tend to not offer much in concessions as they don't want to get it back again.

However, the exception is if it is owner financing that foreclosed, they will sometimes let it go for little down and credit can be worked around as well.

The majority tends to be bank owned property for the time being. You will need an agent that is good at "scrubbing" to find owner finance out of the special circumstance field.

Let us know if any of us can help you.

Ron Bell,
Reno Realtor selling Reno Nv. homes
reno,reno reo, reno nv. reo homes, reno nv. homes, reno ownerfinance, reno foreclosures
Web Reference:  http://www.renohomestalk.com
0 votes
Madeline Zook, , Reno, NV
Tue Oct 28, 2008
Maybe. Sometimes. Depends.
0 votes
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