Basic, BASIC questions for REO investing

[Yvette B.]

Hi there,

I've read all about what types of offers to make to banks for REOs, but I have questions on the most basic aspects of the offers:

1. HOW do you make an offer specifically? Do you call the listing agent and make a verbal offer, send him/her an email, find a contract and fax it, ask them to send you a contract by email or fax then print and return it, or what?

2. HOW do you make an EMD? Do I write a check from my account? Who do I make it out to? Do I get a money order? Do I send the actual check or a copy? If I'm making multiple offers, do I need to have funds for each one?

3. When making a non-contingent offer, and if the bank allows a contingent period (I read that they usually do this) HOW would I be able to get out of the contract and receive my EMD back if I learn of something unacceptable about the property during this phase?

4. When proving that I have the funds in my personal account to buy the property in cash, I read that I can print out a current bank statement and cross out my account number. Should I withdraw all the balance that's over the amount that I'm offering so that they think that's all that I have, to prevent them from countering a higher amount?

5. When making offers, is there a way to make several offers at a time since most of them will get rejected, if I only have enough money for one to be accepted? If say, two get accepted, am I bound to buy both?

Thank you,
Yvette Bauman

[J Scott]

I would highly recommend finding a good buyer's agent who is familiar with the REO process to assist you in putting in offers. That person should be able to answer all these questions for you and ensure that the process is very easy.

Also, keep in mind that many REO listing agents these days will NOT represent buyers; they will either ask you to find a buyer's agent or they will refer you to someone else in the office.