foreclosures in Florida

Sawmill Jim · #41 02/28/15, 10:40 AM

Quote:

Originally Posted by Bellyman

Interesting!

Let me ask, how would a person negotiate effectively to purchase an REO in terrible shape?

Would you basically be approaching the bank with a few comparables in "good shape", an inspection report, an estimate of what it would take to put the property into good shape, (a little wiggle room for unseen / unanticipated additional issues) and after all that is subtracted out, that's your offer to the bank? I can see that as sort of a paper trail that the bank would have trouble arguing with when it comes to actual value. (?)

Or is there another way that you get banks to let go of their REO inventory?

There is an REO property in this area that I'd love to own. I think numerous others would like to own it, too. But somehow, the bank has this idea it's worth way more than it is. It's been for sale, way overpriced, for years. It's been through various auctions that never reach the minimum bid. And there it sits. It's probably worth $125k and they want $250k. Nobody's gonna pay it. It's not worth it. And the house is deteriorating, some through vandalism. It's a sad thing to watch.

Curious on your thoughts!

The banks know what they are worth ,also they have it in their asset side of their books .They will hold it there till their write off looks better . The Gov. and the to big to fail never let things like houses reset to the real market value .It will at some point as they are doing the same old thing of selling houses to people that have no way of paying for them from day one . If they dumped all the underwater houses on the market at one time a lot would go for penny's on the dollar .Thing is banks are showing more in loans plus the diversities markets than there is dollars in existence .

You think houses are cheap now just wait for the next round

DEKE01 · #42 02/28/15, 10:52 AM

Quote:

Originally Posted by ChristieAcres

REO's are often in terrible condition, but this isn't always the case.

I've bought two REOs. One was 25+ years ago and it was a wreck. The one I bought last year was move in ready except I had to purchase a frig, washer, and dryer. It was so clean, I didn't even have to sweep the floors.

In our area, and I thought this was national, banks have gone thru a process of fixing up some of the REOs to make them move faster and get off the bank books. Yes, you'll pay more for a house in better condition, but mine was still well under market.

DEKE01 · #43 02/28/15, 10:56 AM

Quote:

Originally Posted by Bellyman

Interesting!

Let me ask, how would a person negotiate effectively to purchase an REO in terrible shape?

Would you basically be approaching the bank with a few comparables in "good shape", an inspection report, an estimate of what it would take to put the property into good shape, (a little wiggle room for unseen / unanticipated additional issues) and after all that is subtracted out, that's your offer to the bank? I can see that as sort of a paper trail that the bank would have trouble arguing with when it comes to actual value. (?)

Or is there another way that you get banks to let go of their REO inventory?

There is an REO property in this area that I'd love to own. I think numerous others would like to own it, too. But somehow, the bank has this idea it's worth way more than it is. It's been for sale, way overpriced, for years. It's been through various auctions that never reach the minimum bid. And there it sits. It's probably worth $125k and they want $250k. Nobody's gonna pay it. It's not worth it. And the house is deteriorating, some through vandalism. It's a sad thing to watch.

Curious on your thoughts!

In my limited experience, the bank has an idea of the home's value and has a price fixed in their mind. My house was had been for sale for $149K for a year, dropped to $129K for 6 months, and I looked at it for 20 minutes and said $80K, all cash, close in 3 days. The bank accepted the offer that day but asked for a delay in closing due to Xmas schedules. That's when I asked for the tax abatement and they agreed without question.

Maybe I just got lucky, I don't know. What I'm sure of is that with a bank, you do not have an emotionally invested seller like you do a regular home owner. So you don't have to do the song and dance trying to justify your offer. Just make the offer and they accept or not.

Sawmill Jim · #44 02/28/15, 11:01 AM

Quote:

Originally Posted by DEKE01

I've bought two REOs. One was 25+ years ago and it was a wreck. The one I bought last year was move in ready except I had to purchase a frig, washer, and dryer. It was so clean, I didn't even have to sweep the floors.

In our area, and I thought this was national, banks have gone thru a process of fixing up some of the REOs to make them move faster and get off the bank books. Yes, you'll pay more for a house in better condition, but mine was still well under market.

Here on some of the better houses the debtor signs them back to the lender before foreclose proceedings start . On one a few years back the bank payed me to put in in exultant shape ,including real tile floor's in the bathroom

Some debtors just stay till the cops toss them out on their ear ,so you see how those house look .