Regardless each bidder’s financial condition (down payment amount/ excellent credit score/ contengencies…)?
For example:
Bank’s target price is 0K. Two offers received from two possible buyers.

Buyer A: Offer 2K, 5% down, credit score good 750.

Buyer B: Offer 0K, 20% down, credit score Excellent 803.

Which one would be in favor of by the bank?

Best answer:

Answer by pbandham
No, they take all matters into consideration, but typically, you don’t find out all the other stuff until you are into the transaction. So initially, all things being equal, they will take the highest offer. But in this market, REO offers come in one at a time so they don’t have to really pick one out of a group. They have a bottom price they won’t accept below, and any reasonable offer above it, they will accept.

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i dont understand why I see houses that are worth 100 000 or so selling for 10 000 or less. It makes no sense.

Best answer:

Answer by Smickles
Neither…. just as much as they can get.

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Best answer:

Answer by John Reid
If it winterized, it is summerized also. Your air conditioning will be a lot more efficient.
Don’t forget, it does get cool, if not fairly cold in PHX sometimes.

EDIT EDIT
OOOps! Up here in the frozen north, winterizing means something very different from what I now think you mean.
Sorry about that.
Up here, winterizing means puttying all the windows, adding storm windows, laying down more insulation, piling hay bales alongside the house,etc.

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There’s some money to be earned buying and selling real property, especially REOs, or real estate owned. These are real properties foreclosed by banks and unredeemed by the former owners within the allotted redemption period. Therefore they are now assets owned the bank and may be sold to interested buyers, the former owners included, at usually prices relatively lower than those in the regular real estate business. So the profit potential can be substantial for the intrepid broker.

However, dealing with banks on the matter of REOs can be very frustrating: banks are often terribly painful where REOs are concerned. When a REO property goes for sale, it is usually sold through bidding. The list of REOs is published or posted and a minimum bid is indicated for each piece of property as well as the end date of the bidding. The interested buyer then submits his bid for that property, not knowing if there are competing other bids or none at all.

That’s easy as pie and buying an REO should thus not be a hassle at any stage. But it is, in almost every aspect. Consider my recent example:

A REO came on the market, my first-time homebuyer bid. The bank sent him a series of counteroffer letters stating in effect he should make his ‘best and highest’ bid. The buyer might have been bidding only against himself, because if there were other bids they were not disclosed by the bank to my buyer, but he nevertheless submitted his ‘highest and best’ bid and ‘won’. We requested for an early sales closing and my buyer proceeded to arrange for his loan to purchase the REO property.

But here’s the rub. Before we could congratulate ourselves, the REO broker and the bank, sensing the sale was just too easy, faxed virtually demanding for a guaranteed commitment from the lender, something not mentioned anywhere in the previous sales conditions. The fax was sent at 2:30 p.m., the commitment must be submitted 5:00 p.m. same day or else the sale will be nullified, and it is Friday! Practically impossible to acquire such a commitment that was not a prerequisite, in two and a half hours, so you can see a way how the bank can be a pain on REOs.

Aside from its inconsiderate manner, a buyer must deal with the bank’s haughtiness. For their low prices, REOs are usually unkempt, unattractive pieces of real estate. The grounds are overgrown with weeds, the house in a state of disrepair, the interior seedy-looking, having been neglected for some time, perhaps a year or so, the normal redemption period for real estate foreclosures. Yet banks act as if the REOs are prime properties everyone is scrambling and fighting to own, and they can look down their noses on you when they see fit to.

Most REO sales are handled by specialized brokers, called “specialists”. These brokers constitute what seems to be a closed society with its own forms, fee systems, timeframes, and most probably ‘insider’ tracks or connections. Since these specialists deal with impersonal banks, they often overlook the fact that buyers are not institutions, but persons who can feel insults, sense a mood, and get emotionally hurt. Essentially, they refuse to see that they derive their income from buyers and clients who buy the REO property, rather than from the property being sold.

So if you are a broker with a feeling for your buyers, steer clear of REOs if you want to stay on good terms with your bread and butter clients. Do not refuse REO buyers, but don’t make REO buying your main line of selling. If you are a buyer, find a broker inured to the ways of REO sales. Otherwise, both of you will just feel frustrated.

Bulk REO investments are one of the hottest ways that people are looking into in order to provide themselves with some sort of financial stability in these fiscally trying times. If you are looking at bulk REO investment as a way of getting a good investment deal, one of the things that you should understand about these types of transactions is the reason why banks prefer to sell bulk REOs. This is very important in order for you to have a better idea of why bulk REO investments can be profitable, and why they can also hide some tricks up its sleeve which a good bulk REO investor can easily avoid.

The REO process

Banks and bulk REO investments are intricately interlinked with one another because the REOs are actually the result of foreclosures done by banks on real estate that has not been paid by the homeowner. Today, one of the best assets that a person can have is a home, because it is one of the most highly valued private properties that a person can put on collateral. Because of this, many people put the home in mortgage agreements to act as a form of collateral in order for them to secure more credits and loans from lending institutions such as banks. In the event that person can no longer pay the mortgage, the bank can choose to foreclose the agreement and claim the real estate.

The catch

However, the banks actually prefer to have their accounts cleared by payments instead of through foreclosures. For most people, the widely held belief is that foreclosures are intentional acts of the banking institutions to cash in money. Contrary to popular belief, however, unpaid mortgages that has resulted in foreclosures as well as in bulk REOs actually works against the name of the bank, since as an institution the primary goal is to lend and retrieve the lent amounts in cash. Because of this, most real estate foreclosed by the banks is immediately sent to foreclosure auctions in order for the banks to get rid of the foreclosed property from its accounts as soon as possible. In the accounts, for more, these REOs show up not as assets but as liabilities.

The REO is born

Hence, when the bank is unable to find suitable buyers for the repossessed REO lots, the bank has several options, one of which is to personally package the bulk REOs for sale to people who need the bulk REO for investment options. The bank can also choose another alternative path that leads to the same goal – the use of real estate agents that will hook up the bank with a buyer of bulk REOs. Whatever means the banks make use of to rid themselves of real estate, the end result is that cheap property becomes available for lay people who are looking for easy investments.

In sum, one of the essential reasons why banks prefer to sell their bulk REOs is because the currency used by the bank as well as other lending institutions is hard cash and credit. This means that a bank does not actually add anything to its reserve of money available for lending when it keeps an REO property.

I’ve been told that YES they will accept and NO they absolutely will not accept the offer.

Our agent tried to ask the seller’s lender, but they won’t give a straight answer (although she said it may be an issue). And I’ve tried calling banks to find out their standards, but couldn’t reach a human and the automated system didn’t know.

Hopefully someone here does. Thanks!

Best answer:

Answer by Jennifer C
Most banks will not accept an offer if it is contingent on something. But then it again all depends on what the contingency is… Do you have to sell a house 1st before you buy this one? If that is the case, then most likely they will not go for it!

But each bank is different… I would just try to submit the offer with the contingency and see what happens, usually if they don’t like what it’s contingent on they will probably counter back to you with the contingency taken off. Your Real estate agent should already know all of this.

Good luck to you.

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Best answer:

Answer by kemperk
the technical difference between PR and advertising can “make your day” here. Advertising is the PAID dissemination of your message;
PR is not. PR is the Non paid.

so, send the REO officers notices direct.

YOU don’t have to send an ad. A succinct 3 para letter is
all you need.

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Learn how to List REO homes for the Banks. Due to the current foreclosure epidemic, REO Agents are in extremely high demand to list and sell these foreclosed homes for the banks. New reports from Realty Trak state that foreclosures have risen 23% since the 3rd quarter of 2008. The economy is in a stand still, yet these REO agents are working day and night to keep up with the flood of foreclosures. Many believe the banks have been holding back a large inventory and they are preparing to release a second tital wave of foreclosures onto the market. Learn how to start accepting foreclosures and capitalize on this downturn of a real estate market.

1. Educate Yourself-Learn what it takes to Become an REO Listing Agent
2. Get a Good REO and BPO Bank Contact List-List of REO Asset Management Companies
3. Set up a Business Plan-Becoming a REO Agent is a Business and you should set your goals & expectations for your new Real Estate Business
4. Register with as many REO, BPO, & REO Asset Management Companies as you can to get the most REO listings
5. Have your Errors & Omission Insurance Policy & a copy of your Real Estate License handy while registering-the Banks require this information
6. Be prepared to work-You can make an amazing amount of money being an REO Agent, however you DO have to work!
7. Network-Join social networks and network with other REO Agents

With the surge in foreclosure activity, this is an excellent time to get into the business of Listing REO Homes for the Banks. We have included some website links to help get you started Listing REO homes for the banks.

Best answer:

Answer by Landlord
You think you will get a deal by having a higher mortgage with nothing down? The risk to you is still non-existent.

No, this will not work. They will not make your down payment and you still need closing costs.

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