REOs can be a little intimidating, particularly to the first time home buyer. I suggest working with an agent that has had experience with REOs, whether it is us or not. There are some quirks that you need to be prepared for. The important thing to remember is that you are dealing with a large corporations with many levels of bureaucracy. Often times the asset manager at the bank handling this property may be handling 400 other properties. They cannot afford to get bogged down on one.
Do not go into this negotiation thinking that it will be normal and predictable. Some times banks have rules and computer based guidelines that prevent them from accepting some types of offers. It is your agent’s repsonsibility the help you navigate these obstacles. Banks reserve the rights to counter more than one offer and pick the one that best fits their guidelines. They are largely driven by accounting rules. Sometimes being able to close within the month counts for quite a bit. They may take an offer taht on it’s face is below another offer but was better for them a result of other considerations. It can be a frustrating process if you are not prepared. On the otherhand, if you are armed with all of the information then the experience can be quick and painless.
The bank wants to sell these propertiea and they want to sell them with the least amount of hassle. If you work with them to this end you will find the process painfree. Of course, like any property, there can be title issues. These problems are beyond the seller’s control and they do not like seeing them any more than you do.
Below are just a few issues that tend to get people irritated.
- Untimely responses to counters
- Multiple offer situations
- Contract Negotiations
- Seller paid buyer closing costs
- Contract errors
- Bank Addendums
- Contract Changes
- Title Delays
- Termite/WDO repairs
- Lender required repairs
- Seller’s Title Companies
- Closing cost paid for/not paid for by the seller
With Finn Realty you will be fully aware of potential problems and, more than likely, will not experience any of these items. We try our best to take care of issues before they pop up. Our goal if for the buyer to close the transaction and say “That was easy!!”. call us and let us show you want we can do.