keys 2Time Commitment for an REO Sale

There are certain things you know regarding an REO purchase and what to expect, but you may not be ready for the amount of time that it takes. This is not the same type of sale as a brand new home and therefore needs to be planned for accordingly. While the escrow process takes about 30 days on a fast-moving sale, it could take up to several weeks longer for an REO.

The financial institution may not give these real estate purchases as high a priority and you will need to help your representative stay on track. You can attempt to shorten this as much as possible by staying in communication with the agent and making sure they have all the information they need.

Getting a Bottom Line Price

Even if there’s not a lot of competition for certain homes for sale, the financial institution may not be prepared to accept a low offer. You might be able to save yourself from this drawn-out process if you ask them what they need to give their investors. They have people to answer to in terms of making money as well; so many times they will reject a seemingly reasonable offer.

Find out what the minimum amount of profit is that they need to make and then base your purchase offer from there. You might be able to talk to a financial representative that is not a part of the equation to get an honest answer on this. If not an exact figure, you’ll get something that is generally close enough to work with.

Look for More Than One Location

When you’re looking for REO purchases specifically, it’s important that you don’t put all of your eggs in one basket. The time factor alone should discourage this because you don’t know how many other applicants want the same property. By waiting several weeks to hear back on one offer, you could miss out on several other locations that would be suitable. Continue looking around for other properties and then you may end up having your choice of locations later on.

By working with these tips in mind, you’ll have a less stressful purchase experience and you’ll know what to expect from your bank. Don’t get discouraged if your first offer doesn’t work out. There is going to be a deal out there just for you. You just have to keep looking to find it and using the available resources. Then, you’ll know exactly what to expect with an REO purchase.

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This is filed under Foreclosures.

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