REO Question.

Asked by C, Sacramento, CA Wed Feb 25, 2009

I'm interested in purchasing an REO property. 6 days ago, I was told that it was sold. Today, the same Realtor put up new "For Sale Signs". My Agent has called them repeatedly and even e-mailed them without getting any reply. I'm sure the Listing Agent is busy, but is it common practice to say it sold and then, turn around & put up new for sale signs? I think I'm either getting the run around; or someone in that Listing Agent's Office wants the property and saying it's sold.

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C, Home Buyer, Sacramento, CA
Thu Feb 26, 2009
Elizabeth:

Thanks for the clarification. I'll e-mail shortly.
0 votes
Jim Walker, Agent, Carmichael, CA
Thu Feb 26, 2009
The presence of "for sale" signage on an REO property is weakly correlated to its availability. Intuitively, your reaction to seeing a "for sale" sign is to think that the property it sits in front of is for sale. Often that is the case. Often it means only that the listing agent has a pending sale in escrow, or that they have a "pre-listing" agreement with the REO bank. - A pre-listing agreement means that the agent is working to get the property ready to put on to the market. The sign goes up. However, the listing agent still has to work through issues such as getting debris hauled out of the property, waiting for the bank to obtain transferrable title, mitigating hazardous safety issues such as broken glass, and gas leaks.

Most Realtors don't put up their own signs. We contract with a specialty sign company to do that for us. Usually the sign order goes out the day the listing is put in the computer, the sign company usually gets the sign up in a day or two. The sign company may have had a delay in putting the sign up quickly due to the weather.

Very few Realtors make the extra effort to put a pending sale rider sign on their signs, and just leave the "for sale" sign up all through the escrow. I am an exception. I consistently put a "pending sale" sign* after a listing of mine sells. But, that is just the way I am. Most agents don't bother to do that.

*The main exception to that is if the seller demands that the pending rider NOT go on. That demand is rare, but sometimes happens.
0 votes
C, Home Buyer, Sacramento, CA
Thu Feb 26, 2009
Elizabeth:

I appreciate the offer. However, what are you going to track down?

My Agent tells me the property is undering "pending". We've both made phone calls & sent e-mails to the listing Agent. I tracked down the parcel number yesterday. I'm having someone call the County Property Tax Records Office for the bank info. We'll try to contact the bank directly and see if we get anywhere.
0 votes
C, Home Buyer, Sacramento, CA
Thu Feb 26, 2009
I was told that the house was "sold", cash sale, sold 1 day after listing. Here it is 6 days later, new "For Sale" signs up from the same Realtor. I've called. My Agent has called. No one will return our calls. Is this common practice?

The house does need some repairs, but nothing major. It's an ideal investment property.
0 votes
Tamara Dorirs, Agent, Carmichael, CA
Thu Feb 26, 2009
Hi CI,

I've been seeing this too. More than likely it fell out of escrow, but then again, it could have gone off the market for other reasons such as repairs or upgrades (In the case it really did sell and someone is trying to re-sell it).
You said you have an agent, and so I'm wondering what your agent thinks? Has your agent spoken to the other agent and simply asked what's going on?

I know in this climate things have gotten very unpredictable. Some houses sit on the market for months, while others are selling for well over asking price. I just showed a foreclosed home, went to write an offer, and there were already NINE offers in on it (in a 24 hour period), and the accepted offer was well over asking price.

My advice is to trust your agent and move on.

Best of luck,

Tamara
0 votes
Erin, , South Lake Tahoe, CA
Thu Feb 26, 2009
Dear CI: There is not enough information in your question to be able to really help you on a specific level. There could be all kinds of explanations for this. But the most important thing you stated is that you are working with an agent. Great. If the listing agent is not returning your agent's phone calls (and there may be a reason for this beyond the obvious), that's too bad. Unless this is the home of your dreams, move onto another home(s) in your search. REO properties can be priced really attractively and are hot commodities right now. So the competition can be fierce. Brace yourself.

I hope this helps.
Web Reference:  http://SoldByErin.net
0 votes
Francesca Pa…, Agent, Manasquan, NJ
Wed Feb 25, 2009
CI,

First, I would ask: where u told it was "sold" or "under contract"?

I've seen many of REO deals fall through for multiple reasons, not once but twice or 3x. You just have to keep on top of things, I personally was involved in one where my buyer kept presenting the same offer (which was too low . . . hey, what do I know I'm only the Realtor), my buyer was constantly outbid, but yet it would fall through post home inspection or due to financial ramifications. Eventually, it did close (at more than my buyer's offer)

If u suspect any fowl play, have your agent contact the bank direct (which can usually be determined through tax records) or the broker/owner direct.

Francesca Patrizio, Realtor Associate
NJAR Circle of Excellence '06-'07
732.606.2931
Web Reference:  http://www.PatrizioRE.com
0 votes
Penny O'Brien, Agent, Las Vegas, NV
Wed Feb 25, 2009
are you sure it's sold or just in contract? it makes a big difference.
0 votes
Erin Stumpf…, Agent, Sacramento, CA
Wed Feb 25, 2009
The buyer that was in contract to make the purchase could have walked away from the transaction? Without more information, it is impossible to say.
Web Reference:  http://www.SacREBlog.com
0 votes
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