All Forum Posts by: Angelina Grace

Im sorry if my post is unclear to anyone, I dont have much time to post.
They have not officially said that our contract for deed application has been accepted.
They sell REOs. There has been no other mention of any others services.

Good day all,
A lot has changed since my last posts. I very recently made a purchase of a home but now I would like to enter into a contract for deed with a company that sells REOs for ANOTHER home ( to flip). They say they got a clear title and are waiting to receive it from the bank they purchased it from. What seems odd to me is that their rep said
1) that I will be covered by title insurance anyway so its okay that its only a special/limited warranty deed
-- as far as I know title insurance doesnt everything and a limited warranty seems scary for first timer me.
2) He says they have owner financing/contract for deed applications from others but ours looks pretty good
- yet he is telling us to take the next step [ but I havent been told that they accepted our application.] They want me to go to the house a second time and write a list of everything that needs to be fixed and how much it will cost ( because the company wants to know that buyers know what they are getting into ) - that also seems fishy within itself... I know they dont care about me or whether I know what Im getting into.

They would prefer a cash purchase, I would have as well but i just bought another place so the only funds I have are for RENO.

Does this situation seem askew, odd, any red flags?

Thanks again Wayne, that helps!

Thank you all for your responses. They are appreciated.

This property will be a primary residence for less than a year and then, hopefully a long term rental. My concern is not whether its a good investment or not, it is, so if that's the only added value in my situation in regards to having a realtor I could do without it then.

So Im about to go view a property I probably will buy all cash. The seller listed it on craig's list and they dont have an agent and neither do I. I do however have a prepaid real estate attorney that I can use. Does anyone know if thats all I need? Should I be contacting a title insurance company or a closing and abstract service company or can the RE attorney do all that? I will call and ask the lawyer but I'd rather do my research first so I can ask him the right questions. Am I missing something, should I have a realtor? Thanks guys, this site has proved invaluable to me.

Also, i forgot to mention that when i checked the parcel on the county assessor's website it said it was owned by US Bank NA Association. Yet the agent told me that they are still waiting on the deed from the bank, but they will be the sole owner on the title.

Thank you Wayne,
I appreciate your suspicions ;)
I will definitely do that. Thank you again.

I am a complete newbie in the REO arena, Ive been searching online for about a month now for answers and finally found this site.

Background: I currently own a home but I have a tenant moving in June 1st.
My husband and I need to find a place in at worst two months. He works 7 hrs away from home so we decided to move closer so that our family can stay together however I want to purchase a property that can become a 2nd rental eventually because his company is expanding and keeps moving them around to different states.

Main:
We have fallen in love with a REO that smells like it was formerly an animal shelter and has black mold on the sunroom's ceiling (because whoever built it as an addition wasnt too brilliant re: the roof's pitch from the main house.

My husband once worked in roofing and construction years ago and could do the reno mostly by himself if all thats wrong is the flooring (source of smell) and the roof.

However when I checked the county's GIS map the house that is being advertised is not in the location on the map that it should be according to what we saw in person. The parcel no. and lot number given for the house showed up on the map two properties down - a vacant lot.

Even if the gis map got the house numbers mixed up this is confusing because the houses go in ascending order and the house really shouldn't be the number it claims to be online.

Another issue I have is that this company says that it only issues quit claim deeds or limited warranty deeds. Yet in an email the agent told me that the bank doesn't own it - apparently this is a company that bought the property from the bank. Online it said that the property was sold for just over $1,000
The property is now listed for $23,000 with an option of owner financing at $750 down and $250 thereafter.

We really want the house and its zillow 'guesstimate' is $43,000 however similar listings in the area go for $75K- $115K. Before the bank had it, it was sold for $60K in 2004. We could go the owner financing route because then if in a few weeks we find out something is terribly wrong we can walk away only having lost a little. However then if we stayed we would have to pay the full 23K. I was thinking of waiting for it to be on the market 30 days and then offering $8K -10K cash. Is that too much of a lowball offer? You can hardly breathe when you walk into the property the smell is that bad. Lets not forget the mold and the confusing GiS map concern.

I have a real estate lawyer, I plan to apply for title insurance but i dont know if they will offer title insurance on a REO if all they give me is a quit claim deed or limited warranty deed.

Im worried. I take risks often and almost always profit but this is a new area for me and I feel absolutely clueless even though Ive spent countless hours researching. Any helpful advice or commentary would be so very appreciated.
Does this REO setup seem shady?

HELP!!