| If you are looking to buy home or invest in real | | | | department took the property over, here's what |
| estate, you need to know about the power of REO | | | | they were forced to pay on a monthly basis... |
| for Sale properties. If you play your cards right, by | | | | Homeowner's insurance $80.00 |
| using this tactic I'm about to share, you can end up | | | | Lawn service $120.00 |
| purchasing a property at twenty-eight cents on the | | | | Taxes $235.00 |
| dollar! REO is the acronym for Real Estate Owned | | | | Property Monitoring $65.00 |
| and it defines or indicates that a bank has taken | | | | HOA $75.00 |
| ownership of a property through foreclosure. The | | | | Did you do the math? That comes to $575.00 per |
| property is then placed in the Bank Owned REO | | | | month! Now multiply that figure times one hundred |
| department. | | | | and twenty properties. That means that a REO for |
| In a bustling economy, the Bank Owned REO | | | | Sale Department could potentially be doling out close |
| department rules! They can sit on a property or | | | | to $70,000.00 Seventy Thousand dollars a month in a |
| properties until the cows come home when it's a | | | | depressed market. If you don't believe they have a |
| seller's market and they know this. I've been in a | | | | motivation to move propertied out of their REO for |
| seller's market in which the bank is receiving so many | | | | Sale department, think again! |
| offers; they take a haughty attitude towards those | | | | How do you use this information to land an incredible |
| who don't overbid. But I've also been in markets like | | | | deal or deals? First do your homework; whether you |
| the one we are currently in, in which managers of | | | | are working from REO listings or foreclosure listings, |
| bank REO properties do some of everything to draw | | | | you need to do a cost analysis. This will help you |
| buyers; pray, chant, cross their fingers and hope. | | | | determine how much the bank is paying on a |
| As you know, we are in an economic tsunami of | | | | monthly basis. Secondly, you need to get a rough |
| sorts and managers and department heads of REO | | | | estimate of how many REO for Sale properties that |
| for sale departments are reeling from having such | | | | bank has. |
| huge inventories. If I were talking to you face to | | | | There's a number of ways to quickly grab this info. |
| face, I would be shouting that last statement at the | | | | Some banks and lenders have websites specifically |
| top of my lungs to make sure that you heard me. | | | | designated for their REO properties. Others, you can |
| How bad has things gotten for the banks and their | | | | find this info on various REO listings and foreclosure |
| REO for Sale Departments? | | | | listings. Another option is to simply ask the REO Dept |
| Things have gotten so bad that many bankers are | | | | manager. Let him or her know that you are an |
| strategically delaying REO properties for sale to avoid | | | | investor who buys in bulk and ask them how many |
| paying the maintenance, fees, and taxes. When a | | | | properties they have available. |
| lender forecloses on a home, they become | | | | Thirdly, find out how long the bank has had the |
| responsible for paying the taxes, maintenance and | | | | property in the REO for Sale department. A simple |
| any fees such as the HOA Home Owner Association | | | | check online and you can learn the foreclosure date. |
| Fees, until that home is sold. | | | | Finally, know your market! How long are properties |
| I was recently tracked a REO for Sale property in | | | | sitting in your area? Is the bank that you're dealing |
| Smyrna, Georgia in which the owners decided their | | | | with on the FDIC watch list? |
| best option was to walk away. They received a | | | | How is the stock of the bank rated, Buy, Hold or |
| foreclosure notice from their lender and the date of | | | | Sell? When you check the market, what are they |
| the Sheriff's Sale and they simply moved out. | | | | saying about this bank? Armed with this information, |
| They called their insurance company and cancelled | | | | you now know what the market will bear! I'm seeing |
| their homeowner's insurance. They called the alarm | | | | people buy REO for Sale homes at twenty-eight |
| company and cancelled the monitoring service and | | | | cents on the dollar, all because they did their |
| they cancelled the lawn service. When the Bank REO | | | | homework and got aggressive with their offers! |