REO questions?

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Posted: Tue Jul 10, 2007 10:41 pm Post subject: REO questions?

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Thanks Ryan,

I was wondering:

By the time a bank takes possession of a property, they have received no payment on the loan for up to 7 months. Add the additional time and expenses for an eviction, BPO, cleaning it up, minor repairs, security and minor maintenance, time on the market, time of personnel dealing with offers, cost of selling and closing etc. This is a huge expense!

Why don’t the banks have a service where they first offer the property to investors, right after they get the deed? Is this not legal? It would sure benefit all parties with interest!

On that subject: Maybe they do?
What's the deal with bulk REO's? Do lenders and Banks really pool together lots of REO's and sell them at 65-75% of market value?
How the heck would investors do a Due dilligence or inspect such a large pool?

I know a huge bank here in CA recently used a national auction company to liquidate 250 homes. Is this maybe a trend with the adjustable and sub prime melt down?

I don’t fully understand the banking industry. I assume, or heard that some loan portfolio’s are publicly owned, or on the stock exchange and some “investment funds” invest in notes or mortgages? Can someone explain this.

Should I move this over to the REO forum?

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