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I've Been Trying To Buy My First Home And Everything Is A Short Sale! Need A Strategy. |
pepemt
12 Posts
Member Since: 06/29/2006
San Diego, CA
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Posted: 18:14 on 05-14-2008
Apparently what I'm doing isn't working. Banks are either being too rigid or I'm just flat out doing something wrong. I'm working with a REA and making offers on Short Sales listed with Agents in the part of town me and my wife like. Most need some TLC and we're really actually excited about putting some sweat equity into our first place.
We've made 8 offers in the last two months, it's been about 7 weeks on nearly all of them and they're all at various stages of negotiating. I knew these banks took a while to decide on an offer but thought I was ahead of the curve with all my financing in order.
Can anyone advise me on other options?
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cjmazur
4284 Posts
Member Since: 07/23/2003
Cupertino, CA
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Posted: 18:39 on 05-14-2008
Were your pricing expectation unrealistic?
What percent of FMV did you offer?
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dirtman89
224 Posts
Member Since: 08/04/2003
Derry, NH
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Posted: 00:07 on 05-15-2008
Why don't you look for some bank owned (reos) property as I have found lately that there are some of the best deals. I have been waiting for properties to be reos for several months and then I make an all cash, no contingency offer. I have bought 5 this year from banks.
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laurajohnson
1 Posts
Member Since: 05/15/2008
Middletown, NJ
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Posted: 00:26 on 05-15-2008
To: Dirtman
Do you have a percentage formula that you find works to get banks to accept? I've been told they only entertain offers within a certain range but cant seem to locate anyone who can say what range that is - like 75% asking price, 93% asking price? How do you figure your offer?
Thanks.
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pepemt
12 Posts
Member Since: 06/29/2006
San Diego, CA
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Posted: 17:21 on 05-15-2008
CJ: All 8 were listed between $230k-$300k and I offered $200k on everything. I didn't expect I'd really get any biters on the ones in the $300k range but definitely expected to get some counters back on the ones listed on the lower end. Of course that was just the list price, as well, and not necessarily FMV, I suppose...
Dirtman: I'll need to look into the REO route. Are REO's only houses which have been foreclosed on already but not yet listed with an agent?
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bargain76
1703 Posts
Member Since: 12/05/2003
Jacksonville, FL
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Posted: 17:56 on 05-15-2008
Many years ago I was an Industrial Engineer.... and I developed a habit of wanting to 'systematize' most of my daily activities.
To apply a 'system' to REO's, we emailed 100 offers (on the first go-around) to Bank Owned Properties on the MLS in the Zip Codes we were interested in. We did not drive around to look at the properties... we simply applied a low-ball 35% to 50% discount to the asking price, submitted an offer with Proof of Funds and an inspection contingency.....Sight Unseen.
We received 6 responses, most with counter-offers. Upon inspection, we bought 2. We are still receiving responses, and we have 1 more under contract from this mailing.
So much for knowing the details when you submit an offer, huh??
_________________
"BARGAIN KING"
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davidstyles
14 Posts
Member Since: 04/20/2008
Boise, ID
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Posted: 00:20 on 05-16-2008
Aside from the MLS, where are you guys getting these lists of REOs?
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pepemt
12 Posts
Member Since: 06/29/2006
San Diego, CA
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Posted: 11:44 on 05-16-2008
me? nowhere. Just the MLS...
is there somewhere else I should be looking?
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stdavid
130 Posts
Member Since: 09/29/2005
Billings, MT
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Posted: 15:47 on 05-16-2008
Most of the major banks have REOs listed on their websites. Wells Fargo: http://www.pasreo.com/pasreo/public/propertySearch.do
Citi: http://www.citimortgage.com/Mortgage/Oreo/SearchListing.do
Bank of America: http://bankofamerica.reo.com/search/
HUD: http://www.hud.gov/homes/index.cfm
OCWEN: http://www.ocwen.com/reo/home.cfm
US Bank: http://www.usbank.com/cgi_w/cfm/personal/products_and_services/reoPropertiesReq.cfm
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stdavid
130 Posts
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Billings, MT
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Posted: 15:49 on 05-16-2008
By the way, REO stands for "real estate owned" (by a lender.) Many will be listed on the MLS, but not all.
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afcjkatz
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Posted: 03:18 on 06-05-2008
Sounds like some poor handling of your files. Most cases where the files are taking far too long and you don't know why that means that someone is mismanaging your cases. No response is unacceptable. A decline that is up to the investor/MI at the end. Everyone has their own strategy but what we've seen that banks are not selling homes for such discounts as you may read about on the blogs and forums. Most of the time when you are buying homes in foreclosure in bulk is the only time that you may get the massive discounts but that is of the nature buying entire states or LOTs of loans. The banks are usually going to expect something reasonable based off of the markets actual properties. As we used to work for one of the largest lender in the US we are still closely related with many departments of one being asset management or the team that runs that banks ****Must participate a while before posting URL's***f selling REOs. The days the properties have been on the market make a difference but they are not going to loose large sums of money because the house is still worth something. The banks are willing to accept the loss of money when the properties value has dropped but if not that is why the loans are "secured" because if things don't work out they can sell that security upon the borrowers defaulting on their promissory note. Best of luck to everyone.
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dnvrkid
335 Posts
Member Since: 06/07/2004
Omaha, NE
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Posted: 10:46 on 06-05-2008
Most banks are crazy and have no idea what they are doing with REO's. We made an offer on an REO back in summer of 2006 to Wells Fargo. House sold in 2004 for $340K, They were still owed $325K on it, we offered $250K. No go they say - the house sat.
6 months roll by and we get a signed excepted offer, of course it had long expired on our end. Look at the place to see that a pipe had burst and caused some water damage. Looked really bad, but easily fixed and now we are at the start of 2007 and banks are starting to get houses back left and right.
I counter with $188K and we end up buying at $203K. We have fixed it up and refinanced it and it appraised at $300K in 2008 and guess who bought our mortgage from the broker Wells Fargo.
I have found that REO offers seem to garner more attention if you make a cash offer to them instead of contingent on financing. I almost always at the closing table with a loan as they don't care how they get their money, just as long as they get it in a timely manner. I also have the luxury of a credit line in case a loan couldn't get processed in time and then I do a cash out refinance.
[ Edited by dnvrkid on Date 06/05/2008 ]
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dirtman89
224 Posts
Member Since: 08/04/2003
Derry, NH
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Posted: 21:25 on 06-05-2008
On the houses that I bought this year, I have not received tremendous discounts off the listing price. One was listed for $58k and I started at $40k and ended up at $46k. Another was at $33k and I started @ $17.5k and they told me the best they could do was $20k so that is what I paid.
Some are just priced right and I try lower, but end up paying the list price.
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