[barryhussein]

I've been trying for a month to buy an REO in LV or Phoenix. I've met some nice people, but I have many gripes. I've made about 10 offers. Only in two cases did I get a prompt response. Several times there has been no response at all. I've even had my agent call the listing agent and find out if they are dealing. Then I submit. Then, sure enough, "it will take several days." Even the ones that say "we get answers" are no better than the other ones. Some of them DO NOT get answers.

Buying a home with a fax machine and an internet connection is tricky enough, but some of this crap is downright dicouraging. Their marketing skills seem to be horrible. So much innaccurate information. I don't plan on giving up, and I think there will be a new wave of REOs after Christmas. Some of these condo developments haven't had a private transaction in 3-6 months. Only a few REO sales, and the rest are the banks taking them back on the steps of the courthouse.

Merry Christmas to All. Your comments are always welcome and appreciated.

[olecapt]

Originally Posted by barryhussein

I've been trying for a month to buy an REO in LV or Phoenix. I've met some nice people, but I have many gripes. I've made about 10 offers. Only in two cases did I get a prompt response. Several times there has been no response at all. I've even had my agent call the listing agent and find out if they are dealing. Then I submit. Then, sure enough, "it will take several days." Even the ones that say "we get answers" are no better than the other ones. Some of them DO NOT get answers.

Buying a home with a fax machine and an internet connection is tricky enough, but some of this crap is downright dicouraging. Their marketing skills seem to be horrible. So much innaccurate information. I don't plan on giving up, and I think there will be a new wave of REOs after Christmas. Some of these condo developments haven't had a private transaction in 3-6 months. Only a few REO sales, and the rest are the banks taking them back on the steps of the courthouse.

Merry Christmas to All. Your comments are always welcome and appreciated.

Bad client or bad agent. You should be able to work out which. I would expect to hit on at least 1/3 of reasonable offers even if fishing.

It is not that hard.

[delgadobb]

Originally Posted by barryhussein

I've been trying for a month to buy an REO in LV or Phoenix. I've met some nice people, but I have many gripes. I've made about 10 offers. Only in two cases did I get a prompt response. Several times there has been no response at all. I've even had my agent call the listing agent and find out if they are dealing. Then I submit. Then, sure enough, "it will take several days." Even the ones that say "we get answers" are no better than the other ones. Some of them DO NOT get answers.

Sounds familiar

I tried this from Chicago & it was a royal pain. You submit a bid with only minimal information (as much as you can garner), then wait ... and wait ... and wait some more. The bank calls asking for more information or clarification, wanting an immediate response. (Telling you little or nothing along the way.) Then you wait ... and wait some more. Of course, they always want your 'highest & best' offer, trying to create a bidding war.

There is no doubt in my mind that with patience & persistence good deals can be had. A few months ago when I tried it, though, it was like pulling teeth. It seems like some agents on the listing side are playing the 'volume' game. One of the listing agents whose properties we saw a few times reportedly had between 200-500 listings, depending who reported it. Of course, he was REALLLLY responsive. (Sorry, cleaning up sarcasm dripping from lip.)

I found out recently one of the houses I bid on was back on the market for less than the original asking price. (I bid about $12K over the bank's asking price the first time around.) Heh. Serves the bank right. (Or the agent, but I have a feeling it was the bank in this case.)

I'm sure Olecapt & others will have more insight, but my guess is that banks are becoming more reasonable negotiators, if only out of sheer necessity. They're still almost certainly understaffed for the sheer number of REOs, though, so methinks a lot of patience will still be required.

Good luck. Happily Holidays, too, to you & everyone.

[barryhussein]

Yes, Del', all of this sounds familiar to me. The highest and best game, the "mega-agent" with 400 listings. The month long wait; then, they want an answer in less than 24 hours. If these mega-agents are too busy, why don't they give some work to the other 10,000 agents. I small more than one rat, here. Cooler heads will prevail.

Captain's comments are spot on, also. It's been like a bad fishing trip. The two I received responses on--I had offered about 80% of ask. So, that really doesn't make a difference. I've been waiting 10 days on one in Phoenix, where I made a full cash offer, "as-is."

And to make matters worse; I have absolutely been freezing my ass off here for two months. I spent the last three Winters in Thailand, and you don't really need socks, let alone a coat.
Have a virtual cold beer on me. Cheers.

[airics]

so you are offering below list? If so, you don't have a chance

[barryhussein]

Originally Posted by airics

so you are offering below list? If so, you don't have a chance

First one, ask 58K, I said 43K. Overnight, they drop to 55K. Second one, they ask 54,900; I offer 43K. They drop to 49,500 in one day. Depending on how much info. they provide; I'm going in at 75-90%. These are condos; not SFHs. I've recently ruled out conversions. Look at how long some of these places have been owned by the bank. Closer to a year, than a month. And many ask prices have been cut in half in six months. On some, I probably would give full price, but they have to come out of their holes and deal with me, first.

[airics]

My bad thought they were sfr's

[itcbitc]

My husband and I kept running into the problem that as soon as the houses went on the market they were scarfed up in a bidding war. We finally got lucky and had our offer accepted by the bank. Actually this bank was very quick to respond on everything (Citibank). Hang in there. You will succeed eventually.

[gulfer]

I could be wrong here, but I would think that if some type of business practice or law was passed that a bank had to respond yes or no within 72 hours, many of these properties would get sold. That would allow people to make decisions (both the buyer and the bank), then get the asset off the banks books. Plus I would be entirely too frustrated and inpatient to find out if I could get the home at the offer price if it took longer then a week!!
I'm torn on this because as much as I hate government intervention in the private sector, I think something good could happen if they made something happen here.

[olecapt]

Originally Posted by gulfer

I could be wrong here, but I would think that if some type of business practice or law was passed that a bank had to respond yes or no within 72 hours, many of these properties would get sold. That would allow people to make decisions (both the buyer and the bank), then get the asset off the banks books. Plus I would be entirely too frustrated and inpatient to find out if I could get the home at the offer price if it took longer then a week!!
I'm torn on this because as much as I hate government intervention in the private sector, I think something good could happen if they made something happen here.

Unfortunately it is more complicated than that. The lender fronting the deal often does not hold the mortgage. It may in fact be held by more than one set of investors thanks to securitization. In some cases the lender has been unable to establish who it is that actually owns the home mortgage. So it is possible that the lender can't respond in a reasonable time frame because they can't find anyone to make the decision.

Note that it mainly a non-problem. We generally get an answer in less than a week or ten days. Often in two or three. Short sales are different but REOs are not bad. And we have seen little ducking. More just confusion or difficulties in finding the decision maker.

We have been selling these things are all time monthly record highs or close. So it ain't too bad.