REO Banks Dumping Foreclosed Properties

Back in June, I wrote that REO banks will typically only consider offers that are 90% of the list price on foreclosed properties.  They often never even reply to low ball offers on foreclosures.  In the last couple weeks, I have seen a dramatic change in many of the bank’s responses to lower than average offers.  They seem to be having Christmas sales or something because offers that my customers submitted, but I never figured would be even considered, are getting accepted.

Here is an example:

47XX Bryant Ave N, Minneapolis

• Listing  price=$43,159
• 3 bedrooms, 2 bath, on market 260 days, rehab costs around $50k
• My customer’s offer=$22,600, cash, close before December 31
• Bank’s counter offer=$35,000

My customer refused to budge from their initial offer price.  I expected the say “thank you for the offer, but we are not going to accept an offer at less than 50% of list”.  Surprisingly, 2 days later they came back and accepted the offer.  No counter or changes.  Just accepted this very low offer on this North Minneapolis foreclosure.

This is just one example, but I have seen this scenario playing out on other deals also.  I believe the banks are motivated to get properties off their books or at least marked as pending before January 1.

So if you have been sitting on the fence, now is the time!

 

Comments

Leave a comment

Name (required)

E-mail (required)

URI

Your Comment

Anti-spam word: (Required)*
To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.

Notify me of followup comments via e-mail