REO FHA Madness (loans, lender, buyers, cash)

[stuffavail]

OK all,

It seems as though asset managers will not accept loans for REOs. Period.

No loss for them, they are charged with selling the properties quickly so cash wins out even if the cash offers aer for less than my client is offering.

Does anyone know anything different?

This situation is very frustrating.

[chet everett]

Every firm that owns the property has a different policy, and some vary the policy greatly with regard to the specifics of the property. If the REO property was a nicely maintained single family home that was amicably handed over to the lender with an uncomplicated deed-in-lieu process and the lender is only saying "as is" as a formality odds are good that there will be no problem getting a loan to finance that.

If the place is some bombed-out nightmare that the evicted deadbeat owners invited rival gangs in for some rough and tumble demolition after stripping out all the wire and fixtures then I think it is "cash only" for a good reason...

[Silverfall]

I closed several REO's for buyers this year and most were loans. Asset managers taking cash over a loan is just a way of guaranteeing that the property sells and closes. It just depends on how active the investors are in your area. The fact that you think your statement to be true tells me the investors are out in full force in your area.