The trouble is when the motivation is that REO should be a steal. It may or may not, and also, what you "steal" may be not the place where you would like to live.

When people walk in and say they are looking for a foreclosure, I usually reply that I thought they were looking for a house or a condo

Good point, Jon. There are no "steals" around here. And everyone wants the deal.

Jeff

I'll be happy when those go away.  They way the banks treat the buyers makes me SICK to my stomach! Bleh! :(

Great prequalification questions Jeff. I've got a couple of others...

 I like to ask is about pricing. Buyers perceive that they can get an REO property for pennies on the dollar (as some less than avarage real estate investing courses teach) and most buyers assume that means for pennies on the listed price dollar, rather than what the 2005 price was. I always ask my potential buyers if they are prepared to write offers at (or above) listed price. If they want a home that is listed for $400k and they only want to pay $300k because some guru told them that's how it's done, don't waste anyones time.

Lastly, I ask them how they feel about buying a home with no disclosures. The bank doesn't know who put in the flooring or how old the HVAC unit is or if the neighbor down the street plays electric guitar at 3:30 in the morning. Like Jon says, stealing a deal isn't always what it's cracked up to be.

Jeff: great points. These are the hoops buyers have to go through befoe considering a REO. What is strange is the language they add in their long long addendum which is usally so one sighted. Thankfuly they cannot change the terms of the FAR/BAR Contract for sale and purchase it self. 

I've been involved in foreclosures where the lender expect the buyers to sign a lengthy addendum before the end of the day even if it was sent at 4 pm. Something else!

I have found that determining their motivation up front may save the prospective buyers and the hapless agent a lot of time.

 

I like to get the buyer focused on what they want.  I ask them if they realy care who ownes the property and how it is being sold or if they want the best value.  Not all foreclosures are a value. 

Great points Jeff.  I, too, am working on my SFR certification.  The Lynchburg, Virginia market has not been hit as hard with foreclosures as other markets.  However, there is a shadow inventory looming!  When I hear agents comment that they don't want to take "that kind" of business, I say, "how can you not?"  Predictions are that 50% of our business will come from Short Sales & Foreclosures and we'll be seeing these for the next 4 years!  We'd better be prepared when a past client's nephew wants to buy a home that just happens to be bank owned!!  There's opportunity in any market and the Lynchburg market is no exception!  We just have to work harder to make it happen and we have to screen more carefully so that the transaction will be successful!

Very good post, Jeff. It was a little longer post but you made it very readable and visually appealing by putting it into segments like you did. I'm also working on my SFR.

Great points. REO is not for everyone out there. Most people just want a "good deal" and don't know what is all involved with a REO property.

I have to agree with Shannon, if it is believed to be about 4 years more of so called Shadow Inventory, lets all work extra hard to get it all sold. I too look forward to the end of the bank owned inventory. As many can recall back in the boom years the big banks wanted to sell real estate. Well guess what, they are now, but as the sellers.

Hi Jeff,

I have sold a number of these and you hit the nail right on the head!

Good post.

Jerry

When they ask, "are these prices negotiable" I answer "Sure. they usually sell for at least 10% over the listed price"

 

Its hard for someone that dosent know our market (50% of our sale last year were bank owned, and another 20% short sales) to understand that these properties are priced under market to generate interest, activity and multiple offers but that they will sell at market. ie REOS are our market.  And they they are not just negotiating with the sellers, they are competing with the other buyers, much like in an auction. The list price is nothing more than the opening bid. 

Ive instituted a 3 strikes and you are out policy. If a potential buyer dosent learn by their third failed attempt to buy a property under list price, I either ask them to do their own research and call the listing agents directly, or I ask for a  non refundable retainer.

Jeff,

I don't work with many buyers looking at REO's but since I've been on the listing side more...I'm aware of these steps. If you put it all in one sentence...your pretty much at the mercy of the lenders. They want to sell as is...won't normally pay for any repairs...want all escrow held with the lenders title company...can still accept other offers up until the 12th hour and knock your buyers right out of the picture...and even take their time to release escrow. They'll even keep escrow with just cause....buyers think it's such a great deal to buy a foreclosure nd that might be true but these types of deals are more tailored to cash buyers...investors or buyers more savy than the first time buyer. I'm not saying you can be successful..you just have to be aware of the do's and don'ts.

Jeff,

I don't work with many buyers looking at REO's but since I've been on the listing side more...I'm aware of these steps. If you put it all in one sentence...your pretty much at the mercy of the lenders. They want to sell as is...won't normally pay for any repairs...want all escrow held with the lenders title company...can still accept other offers up until the 12th hour and knock your buyers right out of the picture...and even take their time to release escrow. They'll even keep escrow with just cause....buyers think it's such a great deal to buy a foreclosure nd that might be true but these types of deals are more tailored to cash buyers...investors or buyers more savy than the first time buyer. I'm not saying you can be successful..you just have to be aware of the do's and don'ts.

Great information Jeff. You could have made that a flaming hoop! Buyers have no idea what they have to go through for an REO property. Its our job to educate them.

So many people call me that are interested in REOs.  And so few get to the finish line.  For me, the biggest hurdle that people can't get over is the "as is" one.  In theory, they are fine with a fixer.  Once they see it in person, they go pale . . .

Jeff, we don't have a problem here with REO's it is the Short Sales. The REO's are closing in 30- 45 days. It is prudent to ask these great prequalification questions expecially on short sales.

Our biggest issue with REO's is that it is a sellers market for the banks, muliple offers, and they sell over asking price many times. If they are on the market over a month then you can get it about 1% lower.

My experience with buyers who say they want to buy a foreclosure is the same as Richard's (#17).  I also ask what is their expectation when it comes to price negotiation.  I explain that the offer goes to an asset manager who is just interested in the net amount.  I also explain that many of these foreclosures will go into a multiple offer situation. 

I have done several REO sales. Motivation and patience is key. Buyers do need to know the issues that they will face.

Hi Jeff,

REO's are a breeze in my neck of the woods, although it is important to get htis info up front. As Missy says, short sales are what is giving me heart burn!

Unfortunately in the past year I have worked with two, initially, self-proclaimed "investors".  Only to find out after looking at MANY MANY REO listings, that they were actually "Homeowners".  Investors, in my experience, DO NOT need to "love" the house.  They need to "LOVE THE MONEY" that the house can make them.

Homeowners, on the other hand, DO NOT BUY WHAT THEY DO NOT LOVE.

So, Mr. & Mrs. Buyer, if you want to LIVE in a home for the rest of your life, JUST TELL ME!

Shannon - well I can't argue with you there. Short sales are worse. But don'y hold your breath. We are in for the long haul.

Kevin - excellent. The lack of disclosures is a biggie. We discuss that as well.

Lloyd - yep, the contract language can be pretty interesting. Most addendums I see ar 16 - 20 pages.

Lenn - so true. THe desire to chase an REO seems to have shifted some. Some folks have no choice due to pricing.

Teresa - Not all foreclosures are a value. I doubt ANYONE will disagree with you on that powerful statement.

April - excellent advice all around. Good luck finishing. MArch 31 is coming up fast.

Jeff

Jeff, I just took CRS 111 myself.  A great course - and an eye-opener for those who think REOs are easy transactions.

Jeff, 

Great post, I am going to re-blog.  There are a number of good things to think about.  I do love the CRS classes.  

I have found that all of my buyers in the last year got amazing well maintained homes that were at phenomenal prices.  Well, one was a foreclosure in good shape, that we closed over asking.  

So, REO seem great, but it's important to understand if that's the best value for your dollars.

All the best, Michelle

Jeff:  Very well put.  REOs are very difficult.  In our area, they are more difficult than short sales because many are over priced and the bank is showing the over priced value on their books;  therefore, they are not motivated to sale at market value.  When they lower the price market value, they always have multiple offers and it normally goes to a cash buyer with a fast close.  I have actually had more success with short sales than REOs.

Jeff-it really does matter if the buyer is an investor vs homeowner. I always try to get a feel if theby can do any of the repairs...so many times the homeowner buyer can afford the house & can't do the repairs. Really like your motivation question.

Hi Jeff -- If a buyer is a not all cash and is not taking out an FHA 203K loan, some REOs will not qualify for financing so looking at homes will missing plumbing, etc., is not an option.  Motivation is key.

Hey thanks for the great post today.....All good thoughts and comments above. I too will be glad when these disappear.

Patricia/Seacoast NH

I agree. REO is not for everyone. Agents or Buyers....Patience is all I can say.

In our area REO is really not the best deal. You can buy a short sale lower price than REO.

Most of the agents want to have a closing within 30 days, so, REO is good for them, and the price will be up to the sky!

Hi Jeff - in our area REO properties aren't in that bad of condition and can be really great deals.  A lot of our buyers are cash buyers too which makes it a smoother transaction for the buyer (and seller).  We are also finding (because of our declining market) that REOs are priced at fair market value and are selling for list or above due to the great opportunities.  Interesting to see how each market is different.  Thanks for the post!

It seems like getting a "deal" or "steal" is more important than the property.  Some savvy buyers are beginning to realize new construction and the resale market have some even better deals.  In the last few weeks I've sold 3 "spec" homes and 2 brand new condos.  Hmmmm, maybe" never been lived in" and a "builder's warranty" are beginning to be more appealing to buyers with a time frame?

Hi Jeff,  One other thing.  The Banks are not going to accept a "low ball" offer the first 7-10 days the home is on the market.  Some buyers just assume that because it's an REO (and already priced pretty well) that they can play this game.  If it's been on the market awhile.. they might, and have accepted the really low offers.

Great questions Jeff!  We've found that many buyers start out thinking they want an REO, but once they understand what they are in for they realize the many benefits of going with an owner occupied home.

Here in West Palm Beach the REO market is fairly organized.  In many case the listing agents take offers for 10 days and do not respond until the 10 days are up.  Then they review the offers and if one is clearly 'the best' they take it.  If there are some similar offers they may call for 'highest and best' and allow the prospective buyers to re-submit.  Some buyers do re-submit and some don't.

Many of my buyers say, "I don't want to get into a bidding war."  If the property is desirable you gotta do what you gotta do !!!

 

Marsha Montoya Mayer- Realtor     Paradise Properties of Florida, Inc.   www.mypalmbeachrealty.com

USE-TO-BE doesn't live here anymore! (I get that and so does my Buyer)

In years past, REOs were steals!

NOW, the Banks soooooo want market value it's ridiculous.  I mean regular market value when their REO listing has broken pipes from not being winterized, holes in walls, etc. And no repairs to boot...

(don't tell me 203k because that loan and all the hoops stink)

Sorry for the quibble but I think they need to be a little more reasonable so when  RWA Buyer comes along we can close a deal.

Great post Jeff,

 

I have been coaching my buyers lately to think, when buying REO properties, that they are buying land with whatever exists on it as the bonus. When the seller is making no representations as to c/o's, plumbing, heating, roof etc. there is quite a bit of risk. Buying a property "as-is-where-is" is quite different that buying a property from a "normal" seller.

Jeff - The REO market is not all tha impressive here in Nashville. The people have asked me about bank owned property think it's the only way to get a good deal.

The fact is that everything is a cheaper now than it was, because appraisals have driven down the prices of everything sold. Listed homes have no choice but to fall in line.

JEFF

I have the SRF designation, and the classes are very insightful.  Your pre-qualifying questions are all very important in determing IF an REO property is the right fit for a prospect.  Many have no idea what they are getting into nor do they have adequate reserves.  That is where the 203K programs or the Homepath program may be able to help them.

Good luck with your class.

Hey Jeff, Gret post...all very relavent points. It seems even in the non REO market clients need to consider the same questions these days. I have seen that when a client is really ready and comitted to purchasing a REO they are much more motivated to get the funding and investment together before making an offer. It only makes sense to have a solid either cash or loan package ready to provide with the offer.

Keep up the good work...

Hey Jeff, Great post...all very relevant points. It seems even in the non REO market clients need to consider the same questions these days. I have seen that when a client is really ready and committed to purchasing a REO they are much more motivated to get the funding and investment together before making an offer. It only makes sense to have a solid either cash or loan package ready to provide with the offer.

Keep up the good work...

sorry about the double post...computer issues...

Hi Jeff

Great points made, if only prospective buyers were aware of the drawbacks.

 

Jeff - I just closed on a REO - the best experience every. Local bank owned this custom built home. Showed the buyer, buyer fell in love. Inspection was a little scary for the buyer because of the details.  Independent appraisal to make sure the contract price was within the appraisal, due widening of road.  No bank addendum - where do you find that in a REO? Buyer paid cash - closed in less than 20 days. I felt like I won the lottery :)

On the contrary - a REO supposed to close by tomorrow, it is still in underwriting. Everything was submitted on time and then misplaced, resubmitted and waiting for clear to close.  Luckily my buyer is waiting and not loosing his cool.

REOs are not for the faint at heart.  Due diligent, organization, and patience required.

Both properties are steals because they have been on the market for some time and only then had multiple offers when the prices were dropped.

Jeff:  Thanks for the pointers for prospective buyers.  We are still awaiting the next wave of REOs here in Sonoma Valley and the anticipation is remarkable.  Once they arrive, I'm sure some buyers and agents will find the lessons learned quite remarkable, too.

Jeff,

Concise and to the point. Sitting next to you in our CRS 111 class was one of the highlights of the day. Your outline of questions is just what we all need in our arsenal. Sometimes we feel like circus trainers trying to keep the 3 ring show on course. If the buyer's have their lessons up front from knowledgeable REALTORS,we could all be in for better days.

Hi Jeff, An excellent post and one that certainly contains a least a number of the Buyer caveats.  I think the picture used is really excellent as it does represent wha the expereince often feels like.

 

I have almost the reverse problem in some neighborhoods. In the lower price ranges, all that is available to buyers are short sale, foreclosed,HUD,etc. They don't want to deal with all the problems that go along with them. Unfortunatly that is all they can afford.

I have asked several of the young couples to go begging to relatives for money. It is still okay for relatives to write a gift letter for downpayment money. Then they can buy a little better place and work with real live motivated sellers.

Many time Grandparents have put away a little something for an inheiritance. Theya would just as soon give it and see their grandchildren be happy in their first home.

SUCH an excellent post.  It's a real shame when a buyer finds an REO they want to make their home, and the $75 cost of re-winterizing keeps them from going forward.

Have an REO under contract that has been delayed several times - BY THE BANK! Latest thing? The title company doesn't have a copy of the Trustee's Deed of Sale...should close next week.

We just put on our site Zillow's Zestimates to show the value of REO homes relative to retail.  In most cases, you will find REO to be 20% to 30% less.

Hi Jeff,

Loved the feedback your getting to this post! 

This is some great questioning and you are right we all need to get better at this!

Thanks,

Tom Davis

Lots to consider when buying a reo property  good blog.  People need to know these details.

Lots to consider when buying a reo property  good blog.  People need to know these details.

Jeff:

So, often the inventory that is available, either short sale or REO has a build in buyers market. I have seen way to many properties go over list price, and for some buyers their mind set is in the steal mode they just are not happy campers. Carlsbad is a great community.

 

What a great list of questions for a prospective REO buyer to think about -  & for sure the one about why they think they want an REO can be very revealing & give us a chance to explain the realities of our market where an REO may not be the best value out there at all. 

Jeff - Nice clipart and good advice for buying reo's, I really like your flexibility comment regarding closing dates as we have seen title issues, delays because of out of area title companies, or delays in paperwork sometimes because of parties being out of the area.

Hi Jeff,  This is a very well written and presented post.  The " proof of funds " seems to weed many of them out.

You have some great points here Jeff and wonderful questions to ask the buyer when looking for REO'.s.

I just completed my SFR class work yesterday.  Many of these REO buyers think the bank is just going to give the house away.

You hit it on the head -- REOs are not for everyone -- some are best off thinking of a "traditional" sale.

Thanks for the great REO article. Great tips. I also liked #13's answer: When they ask, "are these prices negotiable" I answer "Sure. they usually sell for at least 10% over the listed price" I think that is about true too.

We made an offer on an REO in Hawaii. Four other people bid too. So it was a good lesson that the banks price them really low so bidders will fight over them. (We did not get the home.)

Jeff: Great article...maybe some of the questions one might ask an REO buyer in this current "bank heavy" negotiating period are: 

"WHAT ARE YOU THINKING"?  or

"WHY WOULD YOU PAY FULL PRICE FOR THIS MONEY PIT WHEN THERE ARE OTHERS IN THE SAME PRICE RANGE IN MUCH BETTER SHAPE WITH WARRANTIES AND DISCLOSURES"?

("ARE YOU NUTS?), comes to mind, too.

It may just turn out that until the "worm" turns and the banks start to get real about property values, the average buyer may do better by negotiating hard and buying one of the homes that has been sitting on the market for 90+ days and the sellers are really motivated now (these might actually be short sales at Fair Market Value, too).  Right now, Short Sales and REOs are a CASH BUYER'S realm.

The question...HOW MUCH CASH ARE YOU WORKING WITH...AND MAY SEE PROOF OF YOUR FUNDS ON DEPOSIT...will separate the wheat from the chaff very quickly.

Great questions!  Tom

 

 

I try to warn my REO buyers about things like the foreclosure house that was bought last year with concrete in all of the plumbing.    Doesn't come up in the inspection, because up here in the cold north, the water has been terned off for a year, usually, and the banks won't go turn it on for an inspection.  Are the buyers ready for surprises like that?   

Great Post Jeff,

The one thing I find that most, if not all Buyers today fail to understand is the fact that;  It isn't about price and getting a great deal-It's about being prepared financially with a plan that requires them to make a decision immediately when the opportunity appears.  They don't understand, at least in my market, that the competition for homes in good neighborhoods get many multipule offers the first day they hit the market.  I saw one home get 60 offers on day one.  With that said, Mr & Mrs Jones, you can see why I need to know just how qualified and serious you are!!!!   Oh!  By the way, Be prepared to make your offer AT or above market value, otherwise the Lender won't even consider it!!!

 

There is no doubt it is a frustrating process, and majority of it is the tremendous amount of work the Agent puts in. On the lending side we have been successful for those whom are not cash buyers, on the owner occupied side. Thanks for the post!

Here is a sucess story...

http://activerain.com/blogsview/1540163/home-loans

Definitely a frustrating process!  REOs seem like a great idea, but are definitely not for everyone.  Not just the financial aspect, but the time aspect even moreso (end of a lease).

R.E.O.'s have been dominant in our market for about 3 years now.  The fevered pitch of buyers to purchase them has died down a bit, but we still get the ones looking for a "steal".  We try to educate them to the fact that our market has fallen 50-70% from the peak, but alas they listen to the pundits on T.V. and think that the market will still fall another 30-50% this year.  I think a lot of buyers are going to be looking back at this period in a few years saying "shoulda, coulda, woulda" and kicking themselves because they didn'ta.  Great post and best of luck to you.

In the past 12 months, my buyer's preferred REO properties because they could usually get an answer from the bank in less than a week (compared to months + more months with short sale lenders). 

 

Jeff, so many Realtors are frustrated when they have a buyer for an REO, want to make an offer that day, call and haven't gone through EVERYTHING that you've stated, and end up feeling duped when, a few days later, the required documentation is together...but the house has an accepted offer. Sounds like your buyers will be ready to compete with the investors- a good thing!

Excellent points. It's something that the buyers have to prepare for so it was great that you gave them the guidelines. I've got a 203K going now and everything that can happen, has happened. They were prepared and are still smiling thru the program.

Good points Jeff. Buyers get caught up in foreclosures being a steal and that is not always the truth.

I think buying an REO has a lot to do with the agents.  We have a local REO that is a nightmare to work with.

Good post. We see many buyers who just want a steal and are not ready to provide proof of funds or financing, and want to negotiate on repairs. NOT HAPPENING

Sounds like my world.  Everyone wants the bargain yet no one wants to work for it!  Great buyer primer!

I see we're all in the same boat here - and the boat is getting crowded isn't it?  I'm looking forward to reaching the shore!

Great post!  REOs are not for the faint of heart, mind OR wallet!  And buying AS IS . . . of course you'd want to get the home inspected, but don't think the banks will negotiate repairs.  They won't. 

Hi Jeff

The only bank-owned (non-short sale) home I sold went through without any hitches, took only a week longer then a conventional sale.  We got the bank to pay closing costs and $7000 cash back at closing for some repairs! Then again, 1 bank owned sale, doesn't make me a expert.

thanks

Conor

Pam - yeah it was a tad long. I thought of just listing the questions with no commentary but couldn't help myself. Good luck with your SFR, too.

Mike - that's true, and why education from us is so important. Some folks won't listen until they go through the process, unfortunately.

Mary - and they are not particularly good at it

Jerry - thanks. Glad to hear you are having some success with themm. They can be a challenge.

Ron - well there's a strategy. The question used to be - how much under asking will the seller take. But it is now more commonyl - do I need to go over asking and how much? There are still those that are of the 50-75 cents on the dollar mentality.

Good points, Neal. And we ARE seeing lots of cash buyers and investors. And, of course, getting a loan on the increasingly common "flipped" homes by investors is practically impossible.

Jeff

Betty and John - ain't that the truth?!

Richard - I actually don't get as many calls about REOs as I used too. BUT so many callers now are in the price ranges where the REOs are so they have little choice if they want to buy a home.

Missy -Agreed. The REOS ARE easier in many ways. At least they sell. I have some other thougths on Shorties but many of the questions are the same.

Pam - I'm not sure if ANY of the REOS here go without multiple offers. They are NOT all over asking, though, at least in the higher price ranges.

Jeff

I agree with Teresa. It's frustrating when people say "I'm looking for a foreclosure property" or sometimes I even get people saying they are specifically looking for a short sale. Thing is, in my area, its pretty much even in terms of about half of the properties on the market are short sales or bank owned and the other half are not,

When we do a CMA or a BPO, we clearly see that half of the comps fall into those categories so in reality, the arms length transactions pretty much have to follow suit for pricing just to stay competitive. If they are not priced competitive with the bank foreclosed properties then theirs won't sell.

I took the long way to get to it but the conclusion is, JUST BECAUSE ITS AN REO OR A SHORT SALE DOES NOT AUTOMATICALLY MAKE IT A BETTER DEAL!!!! I'm constantly trying to get buyers to understand this. Look for what they want first, then we find the best deal that meets their needs and desires, regardless if its bank owned, shortsale or otherwise.

Great post. Buyers need to be aware of these things.

Good discuss on the potential problems of a REO property.  The AS-IS part can be scary for a homebuyer if the property has been vacant for a while. Vacant properties open a whole other can of worms.

Scott - and they are often full of surprises.

Lisa - well they are easier here, too. But getting folks to the point where they can participate competively is a challenge.

Jenna - and sometimes loving a home is not enough, with the competition.

Brian - so true.

Michelle - it's a key issue in my mind.

Clayton - good for you. That's a different story than many tell.

Debbie - well that's an important question in any sale, I think.

Chris - we see a lot of homes listed that must be purchased for cash only. Keeps alot of first time buyers out of the market.

Patricia - don't hold your breath. I suspect we are looking at years of this.

Jeff

Hi Jeff, great topic for a post. You've got some very good questions for buyers. Usually it's the investors that go after many of the REOs Lee works with. It's very up front - the terms are and conditions are worked out right from the beginning so the buyer knows what to expect.  Inspections ARE encouraged even if the property is being sold as is.  If something comes up on the inspection that the buyer doesn't like, they can usually walk away and retain their earnest money.  One thing to mention is that REO properties (because of the as is addendum) won't work with FHA loans.

Nanette - but often patience is not enough.

Valeria - it's a mixed bag on pricing. Some REOs are priced very well, and if they are in good shape and you can get them , they are a great value.

Joyce - a lot of similarities here

Linda - so true. But many of thenew homes are beyond the biudget for a good chunk of the first time buyers. But our new home market has picked up substantially.

Geoff - true. Many listings say the lender will not make any decisions until the home has been on the market 5 - 10 days. And by then you are looking aat mnay offers, sometimes in the double digits. So getting in early does not matter in some casess. But making a strong offer DOES.

Jeff

Great post Jeff, good timely information.

I wrote a similar post a few months ago. Buyers think that REOs are "all that" but . . . sometimes they are not. Glad to hear that you are working on obtaining the SFR Designation.

Peter - I have had that experience too. Or they are willing to buy an REO but NOT a short sale. Unfortunately a number o fmy clients have no choice but REOs and investor-owned properties becuase of budget.

Marsha - bidding "wars" are unavoidable here in the lower price ranges (under $400K or so). If you want the house you have to compete and expect that you may not be the winner. Many folks have to try several times to be successful.

Mary - yep we see that here too. And there are folks, especially the ones with cash, who are wiling to buy these homes. We are seeing a lot more attempts at flipping adn some reasonable success.

Jeff

It is amazing how many people don't listen when I explain what AS/IS means.  No matter how well we explain it, it seems that buyers don't listen.  AS/IS means what you see is what you get.....say a prayer and get a home warranty cause the seller and your agent are not fixing anything or writing any checks.

Hey jeff--

Our law firm, Topkins & Bevans, does a lot of work with REO Servicers in Massachusetts. In fact, we probably do the most of this kind of work of any firm inour state. I could not agree with you more, in terms of your points, and I intend to re-blog your post so the admimnistrative people we work with and the sales group who are marekting the REO's can present this type of picture to their potential Buyers.

REO investment or home ownership is not for everybody, that is for sure.

Elliott Topkins

www.topkinsandbevans.com

 

 

 

An excellent post and it applies in all markets across the us.  REO's are not for everyone and most buyer really don't understand what is required.  I always have the "the TALK" when I first meet with buyer so they can determine if they are the type of buyers who can handle REOs or short sales.

Great questions: I will pass this along for sure. Thanks for the info!