FIVE WAYS TO MAKE REO OFFERS IRRESISTABLE TO BANKS

STEPHANI DAVIS HAS PENNED a splendid article offering buyers and investors a few tips in getting the banks to stand up and take notice on an REO offer. An REO (Real Estate Owned) is a property that reverts to the mortgage company after an unsuccessful foreclosure auction. To a buyer an REO property frequently offers a great deal, but can often be a nightmare for unsuspecting investors, so buyer beware...

But let's think positive in this article. Quickly, the five hot tips for winning the favors of banks willing to take a loss on property they own but wish to get off its books, are:

Make cash offers

Dismiss the inspection contingency

Give the listing agent both sides of the commission

Offer a large earnest money deposit

Offer a quick closing

Now, of course, it would be that rare deal that ALL of these suggestions will work for every buyer. In the everyday world the perfect REO buyer would be the one COULD and WOULD offer each of these hands down assurances to the bank. But in a down market like we are in today where investors are snapping up properties, there is indeed trusted wisdom in Stephani's advice.

But while we are on the topic, what role do professional appraisers have in this scenario, especially when the client is not you the buyer, or Jane the seller, but First Trust the lender? Here is a supplemental article on the appraisal business that savvy readers should refer.

If you've got cash on hand and want an REO, don't hesitate. There are some spectacular deals out there. I've given you Stephani's five tips, but you need to read her full essay to know exactly what she's learned.