Buying REO Note from a Bank - Posted by Kaitlyn
Posted by Kaitlyn on July 18, 2001 at 07:18:18:
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).
(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?)
- Could I buy the note from the bank at discount (using a Notebuyer to fund the purchase) then “resell” the house to an owner/occupant for close to Fair Market Value?
I’m a newbie, have never done any of the above and do appreciate your comments!