How do you take down a Beast?

Question

I'm looking at high end REO's in S. California and have listened to the talk on the forums about banks willing to really negotiate when houses have sat 150+ days on the market as REO's. What I don't understand is the jumbo loan houses. I've done some digging and I've seen large numbers of these homes forclosed for 500 + days with no end in sight but if you talk to the agents you find little if any interest in discussing a low but serious offer. It's sad to see the promo pictures they use of some of these homes over a year or so back and then see the current reality of dead lawns and bad pools. One home I'd watched was REO 270+ days and Countrywide actually droped the price. 1,355k to 1,040k. I had a friend look at the property and he said a crew had come out and cleaned the windows and raked up the dead branches. The next day the house was back up to 1,275k. That must have been some cleanup.

Is there something I'm missing here? I know a real estate agent is suppose to maximize the value for his customer, (in this case the bank), but on REO's over 200+ days? I'd think they would drive you to the bank to help you make the offer. Don't they get a commission anyway?

I'd just like to find a way to make an offer without stepping on the agents toes.

Is there something I'm missing here?  I know a real estate agent is suppose to maximize the value for his customer, (in this case the bank), but on REO's over 200+ days?  I'd think they would drive you to the bank to help you make the offer.  Don't they get a commission anyway?

I'd just like to find a way to make an offer without stepping on the agents toes.

Brice C. · Answer

Start stepping on toes..........agents are required by law to submit your offer unless specifically stated in listing that no offer will be accepted below a certain amount.
Agents frequently hold offers or fail to submit them......make your offer then push....good agents will submit it......ask for the denial paperwork if told you were denied......always push the issue.....the only agents that will be offended are those that do not do as they are supposed to. If you know the name of the bank get it from title send them a letter letting them know you offered so bad agents will be eliminated. Tell the agents your going to do you diligence on your offer up front and you will get your offer submited.

ever hear of the 80/20 rule......80% of the people do 20% of the work and 20% do 80% of the work.......lots of people are lazy and we must make them do their jobs by what ever means (legal) we have to. If you find out that an agent did not submit your offer report them to your dept of RE

Dawn Vought · Answer

A tax lien will take priority over a mortgage lien, so be careful.  The good thing is that if you purchase from the bank (before the tax deed sale), as the owner you can redeem the tax lien and the house is yours free and clear at that point.  You will need to pay the interest to whoever holds the tax lien (through the county), in addition to their foreclosure costs if they have started the process.

If you buy the house and the person holding the tax lien forecloses in the interim, they now own the house, not subject to your ownership.  When/if you close, make sure all tax liens are satisfied at the time of closing, otherwise you can pay for it one day, and if the tax deed goes through the next, you just lost the house and there's really nothing you can do about unless CA has a right of redemption.

Account Closed · Answer

Thanks, I beleive I'll follow the advice from both of you.  I'm at a distance, China, and while I have friends and family in CA they aren't real estate inclined.  Unfortunately Jake I'm looking in the San Diego County area near Poway as I'd like my folks to move into what I buy.  I'm starting to see tax leins on a lot of these properties.  Most assessed at 2007 prices are sky high.  The lenders don't seem to have kept current after forclosing.  Is that going to be an issue.  Title should be clean I understand but back taxes after forclosure?

Stephani Davis · Answer

Kurt,

I would just go ahead and make your offer (either through the listing agent, or through a buyer's agent), and see what sort of response you get.

I've had many listing agents tell me that the bank would never accept my low offer, and then they end up accepting it.

The best way to find out a bank's motivation is to just make an offer.  The worst that can happen is they say no.
 
Good luck, 
Steph

Jake Kucheck · Answer

You could find a buyer's agent that has relationships with REO brokers in the area that can feel these things out for you.  If you're looking in Orange County, I'd be happy to help you with this.