Comments on: REO Properties and Bank Foreclosures

By: Susan@Palmdale homes

Susan@Palmdale homes — Mon, 19 Jul 2010 16:45:33 +0000

Some sites are better than others for finding REO listings and I agree that the banks themselves are a wonderful source.

If an investor does have all cash, they may just want to skip the REO's altogether and go to the auctions. It takes some time to get prepared and do research, but some great deals can be found. Just keep in mind that the majority of banks ask for the total price of what is owed to them as the starting bid and in this economy, a lot is owed, so you have to investigate to find the best ones. Retran is one of the best places to do this research.

By: Reo Properties | Bucks County Real Estate

Reo Properties | Bucks County Real Estate — Tue, 13 Apr 2010 18:02:47 +0000

[...] provides impartial advice about real estate investing, including bank foreclosures and REO [...]

By: Dallas Custom Home Builder

Dallas Custom Home Builder — Wed, 14 Oct 2009 01:01:23 +0000

It's truly amazing how big of a problem REOs have gotten. Even here in Dallas we have our share of them and we are supposed to be one of the healthiest housing markets! I've seen concrete block homes selling for less than $30 per sq ft in Pt Saint Luice, FL. I'm talking 100k for a 3k sq ft house built out of concrete!

By: Jeremy@REO Properties

Jeremy@REO Properties — Fri, 03 Apr 2009 20:35:37 +0000

Though foreclosures are the big buzz word right now, the inventory of REO property is quickly becoming the bigger problem depressing housing prices. Scott was ahead of the curve posting on REOs nearly a year ago.

Since this has been posted the REO market has really been heating up. The online lists are great resources, but if you plan to do this on a bigger scale nothing can replace personal relationships with your local banks. Many of the smaller guys don't have much of any online presence and also often have more incentive to move their properties than some of the bigger banks. This means better deals and bigger profits for you.

By: Scott Roemermann

Scott Roemermann — Wed, 25 Feb 2009 10:46:34 +0000

I've had no experience with such lists but it sounds like it could be a useful source if you are confident in the quality of the data. The other thing is you obviously don't want too many investors working the same list.

Anyone had experience with this?

By: Chad@Myrtle Beach Foreclosures

Chad@Myrtle Beach Foreclosures — Tue, 24 Feb 2009 01:40:56 +0000

I have heard that some people are also buying pre-foreclosure list from people that hunt through the records at the court houses and then they compile their list and sell their data to investors – what is your take on this? Do you think those list are worth buying for your local markets?

By: Scott Roemermann

Scott Roemermann — Sun, 22 Feb 2009 07:50:00 +0000

Thanks Ken. Kudos to my friends at foreclosure.com.

By: Ken@Cheap web hosting package

Ken@Cheap web hosting package — Sun, 22 Feb 2009 05:44:50 +0000

I like your foreclosure search best. Have to say that it seems to list more than i find in my own area. For some reason you have more homes listed and some better ones.

By: Scott

Scott — Wed, 14 Jan 2009 13:19:36 +0000

Although REO's are typically a great investment, there is still room for price corrections in many markets. That said, REO prices are going to be further reduced by banks who are dying to get them off their books.

By: Rudy Rosales

Rudy Rosales — Fri, 02 Jan 2009 17:32:07 +0000

I was just wondering if anyone knows of reo companies to sign up for appraising. Thanks

Thank You

Rudy

By: tom@Cheap dsl.

tom@Cheap dsl. — Tue, 30 Dec 2008 21:41:10 +0000

I use a few sites to look at foreclosures and i found some on your site i never would have. Great site with one of the better search for forclosures i have seen. You also list some of the best sites to look for more poperties no matter the type. I also like the hud homes search.

By: GO Zone

GO Zone — Tue, 23 Dec 2008 19:00:44 +0000

You nailed it John.

By: John Corey

John Corey — Tue, 23 Dec 2008 17:59:14 +0000

Tony,

Banks have not been able to own property as an investment since the 1930s. In other words there has been no change in a long time on that front.

More banks are selling on the loans they originate. While selling on the loans has existed for decades it did become a lot more common in the last 10 years. You are correct that lenders who sell on the loan book have less incentive to make sure the loans are solid and that they remain solid. At the same time the investors buying the loans should be more intelligent when they buy.

John

By: Tony@Best dividend stocks

Tony@Best dividend stocks — Mon, 08 Dec 2008 23:43:57 +0000

Great post. I like the search and the sites you have on blog i seem to find more properties on some of them.

The fact that banks can not own property anymore seems like half the problem with the credit crisis right now. If they had to hold the loan instead of selling them i think they would not have given so many bad ones out.

By: Jennifer Zetter

Jennifer Zetter — Wed, 03 Sep 2008 20:40:45 +0000

My mother-in-law wanted a good list of foreclosures so I sent her to your blog to look at the list you have. They are thinking about getting involved in Real Estate Investing and want to start with a REO Foreclosure so with the help of your blog I'm hoping she will be on her way. I appreciate all your hard work and keep up the great posts.

By: http://www.insaneleads.com

http://www.insaneleads.com — Tue, 29 Jul 2008 05:14:32 +0000

We are dealing with a property right now that is an REO. We are in good position to purchase this property for 30% AVR. There are serious foundation issues with the property, over $120K of repairs required to stop the house from sinking, and no guarantees to the levelness of the floors. We know the bank has used 3 top REO brokers in our area over the past 2 years trying to move this property, and they just cant move it. The property has an ARV of $799K, and our current offer is $250K cash no contingencys. The listing broker is even in our corner for this one, just to get rid of it because they know the problems and even most investors wont touch something like this, but time and solid construction estimates are phenominal negociaters. Doesnt hurt to have the listing broker pushing the offer.

By: Investment Property

Investment Property — Mon, 07 Jul 2008 19:34:10 +0000

This is a very relevant post right now. Some sweet deals can be had by picking up foreclosures, just don't base your "good deal" off what it sold for during the peak, but instead base if off sound real estate investing valuations.

By: Scott Roemermann

Scott Roemermann — Sun, 23 Mar 2008 20:44:27 +0000

Thanks for your input John.

By: John Corey

John Corey — Thu, 20 Mar 2008 09:31:15 +0000

A slight clarification. You wrote:

"If a bank cannot sell a property at a bank foreclosures auction, the bank may do an REO sale. This can happen when the amount owed on the property is more than the value of the property. When this is the case, the bank tries to sell the property not at an auction where the price can be lower. At this stage of the process, they will most often sell the property through a realtor."

Technically a foreclosure action is a forced auction. The present owner is being forced to auction the property to clear a debt. The opening bid is submitted by the lien holder who is forcing the auction. If no one else bids then the lien holder (normally a lender but not required) 'wins' the auction.

If the winning bidder is a bank or other regulated financial firm then the property becomes an OREO property. Other Real Estate Owned by the bank. People use the label REO for all such property. The bank is the owner and they can do what they want to sell the property. Legally they have to get rid of it as banks are not allowed to hold real estate for investment. This is why a bank will discount if that is what it takes to get the property sold.

The bank can list the property with a licensed agent, they can put it out for auction, they can sell it as part of a portfolio, and other ways to get the property off the books of the bank.

John Corey