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Answers (9)
- Nancy Celis, "nancycelis"
- Contributions:57
Lenders are inundated and I believe some banks don't have efficient systems and manpower to process the overwhelming distressed market. Other banks are on board with a streamlined system - wish they were all like that.
- Laurel Jaques, "LAUREL JAQUES"
- Contributions:65
As a listing agent of many REO properties, I can tell you that it can be a relatively painless deal. Find out from the listing agent what to expect and how long the bank typically takes to respond. At the beginning of the listing, they want to make sure that the property has had adequate exposure to the MLS before accepting offers, so usually they won't review the offer, or wait several days to respond. And it is true that in the beginning they won't come down much from the list price. They feel that they have spent a reasonable effort to find out what the market value is and that number is what it should sell for. If you know what to expect, it saves a lot of frustration for you and your buyer!
- Nicholas Ribeiro, "NicholasRibeiro"
- Contributions:1807
Like the banks that use that dreadful equator system?????
- Janice Gatlin, "tahoeforsale"
- Contributions:13
Marla makes some great points. Many buyers who are willing to get in on this good market are a doing exceedingly well, especially in the investment market. Yes, can take a bit of patience, but as Marla points out, the return can be worth the wait. We are seeing the same thing in our N. Nevada region (where my partner works); many properties purchased for rental are instant cash flow.
- Marla Lopez, Broker, "Idaho House Hunter"
- Contributions:490
THUMBS up to Janice's response below....all VERY true!
When you say "foreclosures", I am assuming you mean an REO, a property that is now bank-owned and on the market, not a PRE-foreclosure.
IF indeed you're talking about a "foreclosure/REO", and 60% of my sales are REOs, from my experience they can be difficult and time consuming.....
But, there is ONE word that describes why they take so much time:
OVERWHELMED!
Banks are NOT in the business of owning or selling real estate, and there has been 5 million foreclosures in the US in the last 3 years. Take a moment to think of what that means.....the banks must have asset managers (usually with little or no real estate background) to handle each and every one of those sales.
OVERWHELMED!
With patience and money, a person can pick up some pretty great values these days.
I have many investors that are purchasing properties, renting them out with 15% to 25% ROIs in this market!
Good Luck!
When you say "foreclosures", I am assuming you mean an REO, a property that is now bank-owned and on the market, not a PRE-foreclosure.
IF indeed you're talking about a "foreclosure/REO", and 60% of my sales are REOs, from my experience they can be difficult and time consuming.....
But, there is ONE word that describes why they take so much time:
OVERWHELMED!
Banks are NOT in the business of owning or selling real estate, and there has been 5 million foreclosures in the US in the last 3 years. Take a moment to think of what that means.....the banks must have asset managers (usually with little or no real estate background) to handle each and every one of those sales.
OVERWHELMED!
With patience and money, a person can pick up some pretty great values these days.
I have many investors that are purchasing properties, renting them out with 15% to 25% ROIs in this market!
Good Luck!
- Janice Gatlin, "tahoeforsale"
- Contributions:13
The banks have very strict guidelines regarding the sales of their REO's. They need to show a wide market exposure (ie: no 'pocket' listings), they need to show strong negotiations (so they often will come back at full or close to full asking when they counter), and they need to 'honor' their bpo and or appraisal value.
Typically they won't come much off the asking price in the first 3-4 weeks, but then they may start looking at lower offers if the home hasn't sold in that time.
Best suggestion- don't wait to for the price to drop to make that offer. Lots of buyers wait, then it becomes a multiple offer situation. Banks don't take low offers personally so if you offer once and it's rejected, try again a week or two later.
Oftentimes the bpos and even the appraisals are not accurate, but the banks still have to use them.
Typically they won't come much off the asking price in the first 3-4 weeks, but then they may start looking at lower offers if the home hasn't sold in that time.
Best suggestion- don't wait to for the price to drop to make that offer. Lots of buyers wait, then it becomes a multiple offer situation. Banks don't take low offers personally so if you offer once and it's rejected, try again a week or two later.
Oftentimes the bpos and even the appraisals are not accurate, but the banks still have to use them.
- Scott Fortney, "Scott Fortney"
- Contributions:32
Beacuse they are banks! Not really. What I have experienced with banks and REO's are that they are many times overwhelmed with with volume. Having worked with a few banks on a large number of properties there were times when an offer was not accepted one day only to have a lesser offer accepted 45 days later. The particular bank was very strict on compliance with BPO's that were within 60 days old. This could be one reason.
- Metro Indy Expert.
- Contributions:197
I have dealt with so many of these that i'm not sure there is a logical or good reason why banks do the things they do. I've had banks turn down offers only to take less money two months later. I do think a large part of it is because the banks are overwhelmed and losing money or dealing with real estate sales is not their normal course of business so it's a slow learning process for them.
- Pasadenan
- Contributions:21466
No, it is they cannot take the book loss without becoming insolvent.. so they have to build their reserves before they can sell so they can take the book loss.
And of course, they keep "hoping" that the party that owes the money will start paying, as they know they will not get as much with a new buyer.
And of course, they keep "hoping" that the party that owes the money will start paying, as they know they will not get as much with a new buyer.
Why are some banks (and I will not name names) nearly impossible to deal with on foreclosures?
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