REO Property 140+ Days on Market

[Vangie Gal]

I have been monitoring a property which has been an REO listing for over 140+ days. The bank foreclosed on the property in November 2013. It has been listed by the bank and had a recent price reduction the beginning of April 2014. I'm considering putting an offer but wanted to get the BP Community forum opinions on this subject property.

It is a Fannie Mae asset but has not been approved for any Homepath Financing. The physical layout of the dwelling and the county records do not match.

1. What percentage off the listing price should I consider offering? 15%, 30%, 50%?

2. How motivated is the bank?

3. Since it is a bank owned property, are all liens cleared, what should I be concerned of?

4. Would anyone recommend a particular strategy when making an offer?

5. What types of terms should I include in my offer?

6. Should I contact the REO agent directly or utilize another agent to make contact?

7. Since the county records and the property do not match, how can I utilize this to my advantage?

8. Any other info, recommendations and tips would be greatly appreciated.

As a side note, I personally know the previous owner and have quite a bit of knowledge about the property.

[Ned Carey]

1) Wrong question. The right question is what is a good deal for you - that is how much you offer.

2) Who knows? Make an offer and find out.

3) that should be made clear in your contract. Normally you are buying "free and clear of all encumbrances" and get "Marketable title"

5) the cleaner your contract the better the chance of acceptance. Multiple contingencies for inspections and financing hurt our chances. Paying all cash, settling quickly and or putting up a large earnest money deposit are all helpful.

If you can't do that, don't let that stop you from putting in the offer that does work for you.

6) the are pros and cons both ways. If you are new having an agent on your side may help.

Good lcuk- Ned