All Forum Posts by: Paul Cordero

Every bank is different, and every REO deal within that bank is different. So don't expect a set percentage that the bank will accept. You just need to put in a low offer to see if the bank is willing to play the game. If they counter at full price or just a bit lower, then you know that they are not interested in taking a huge loss at that time. If they counter back a lot less, keep the countering going until you meet in the middle and below your cap of course.

Search the county records to find out who is on title. Then start leaving notes on the door with your contact info letting anyone who checks the property know that you are interested. You could attempt to contact the owner, but Deutsche bank is a huge company.

If you want to find REOs before they hit the MLS, get with an agent who specializes in REOs and has a lot of inventory. Chances are that they are getting inventory daily from the bank, and then there is a period of due dillegence performed by the agent on the bank's behalf. This usually included occupancy check, BPOs, repairs, maint. and other premarketing activities.

People come to me all of the time and want to skip the agent, but we won't do that. We have too many homes spread out all over the US to understand each market as well as a local agent. So even if we get offers in premarketing, there is still about 10-14 days of due dillegence that the bank will do before accepting an offer. I speak for my company which is a large servicer for several banks, nation wide.

Justin,

Hello from a fellow AZer. 50-60% may work in the PHX area, but I think that MD has a much slower steady market than us.

Joe,

If you are paying cash and have at least 2% EM to put down, then I would say that you are safe offering 50-60% of FMV, but if you are financing your purchase, a bank is not going to waste their time on a deal like that. I may be soley speaking for the institutions I represent, but cash is king right now.

Joe,

100 DOM is not very high for an REO. You will be very lucky to pick up REOs at $0.50 on the dollar. I would say that 70-85% would be realistic depending on the market you are looking to buy in. Where are these REOs you are looking at?

Here is what usually happens. Countrywide did not pull title or missed that the vesting was wrong when they took their asset back into inventory (REO). Someone at the escrow company usually catches this right before closing. Countrywide has to go back to the foreclosure atty. to get a corrective deed and vested into the right entity. If the loan was bought from a different mortgage company, then they may need to get them to resign the deed back over to CW. With several people in the process, the pipleline can get clogged and everything gets delayed. I think this is what is going on in your case.

If you are buying in KY in OH, which are both confimation states, then recording could take even longer.

Marko,

The bank will most likely not pay for this work to be done unless transfer of ownership can't take place without it. I would say to put in your offer and see what happens. The bank just might need this one off of the books, and fast.

I always try to get at least 2% or $500 whichever is greater. $5000 would be good EM depending on the purchase price.

This is the Notorious "Flip Rule" probably inherited from FHA guidelines. It is to keep investors for flipping for a profit. It is not discrimination, but it does keep the rehab investors from making a quick sale.

I am almost certain that you did not deal directly with Deutsche bank on your closing for this asset. DB uses a slew of Servicing companies, including mine, to handle their REO transactions. It sounds like you were dealing with a bad servicing company (3rd party) or someone who didn't know what they were doing.

Deutsche Bank is our most successuful investor in the REO game that w service for. We have had no problems with closing their deals and it sounds like this one instance could have happened with any institution.

Sorry to hear about your bad experience, but please do not write of DB as the worst REO lender to deal with.