Posted by mike on July 20, 2001 at 14:50:19:
Kathy,
Can you tell me what bank’s website you were at? Most banks will negotiate with you because they want to save on the time, fees, and hassles of listing a property. You might try offering 60%. They will say no but that will at least give you a starting point. You would not own the house - the resident still owns it. You would, however, have the right to foreclose if they continue not paying their debt.
Buying REO Note from a Bank - Posted by Kaitlyn
Posted by Kaitlyn on July 18, 2001 at 07:18:18:
Hello,
I visited a bank’s foreclosure listing website and was surprised to find that this bank gave you an option: either buy their REO’s at auction or you can buy the NOTE by submitting your offer via fax.
Banks in my area use real estate agency to sell their REO’s and it’s usually at fair market value (the banks fix up the houses in most instances).
My questions:
(1) If I buy a banks REO note (and I believe I can buy 1 at a time, not in bulk) - does this mean I own the actual house?
(2) Would it be ridiculous to offer the bank 50 to 60% of the FMV of the house/note? (would it likely be accepted?)
I’m a newbie, have never done any of the above and do appreciate your comments! 