BiggerPockets

I read an article that quoted an un-named source saying that GE Capital is trying to get as much money by 12/31 as possible-even giving salespeople incentives to talk customers into refinancing to another company or close accounts--in stark contrast to how they've been trained to get people to borrow more in recent years.

Regardless if it's 100% true or not, I'm wondering if banks would be willing to accept less for REOs if an investor can close the deal by the end of the year and the bank can report cash on hand and 1 less REO?

Has anybody seen or heard of banks being more willing to accept lower offers on REO recently? It might be sinking in more as the year end approaches so it's probably in recent offers-not 2-3 month ago offers.

We're running the numbers and looking at making low offers on 3 REOs soon. I'm thinking we'll figure the numbers for our 'normal' low offer (15%-20% less than already lowered price) and then knock it down a couple thousand more to see if they accept with a closing date of 12/29 or so. I'll let you know how our experiences go.

At this point in time, I doubt any bank could actually close an REO sale by 12/31/08.

Thats the kind of price drop I look for. If it's a good deal, walk in offer 28K cash deal. The last Fannie I closed on, came with a requirement that it had to be closed within 20 days. I don't know why, but it was their requirement. There is no reason why you shouldn't be able to close within 20 days as long as you work with their title co.

Jon,

Vacation very well could be an issue that I did not consider. Seeing how it's the title co that is usually the hold up and I would have to think they are scraping by at would the work.

You make some very good points.

I'm based in Colorado. Until the Treasury bailout I was able to pick up small portfolios of 10 to 15 properties, closed individually. Since the bailout I can only get one here and there. My REO listing brokers all report a sharp drop in listings. My asset managers all think there will be a flood of new REO listings in the new year.

I'm watching the treasury plans with great interest.

MAKE OFFERS RIGHT NOW!!!!
Are you in love with banks? I sure hope not.
Do banks want to own properties? Heck no.
Do they want them gone? Of course they do.

FYI on this, a bank REO manager I spoke with personally last week told me that for a property under contract with a cash offer on it prior to year end, he can still show it as sold on their books even if the closing doesn't happen prior to 12/31.

As for the offer amount, who cares? Not Me :)
We have just put in 12 offers.
One of them got accepted within 72 hours. The property (a 3/2, appraised at $160K) was listed at $113 and dropped to $97K a week ago. My offer was............ drum roll please....... a whopping $51K (don't ask me why, I just felt like it)....... Wednesday of this week..... ACCEPTED hehe haha, I'll take it :D

NEVER be afraid to make absolutely retarded offers, the worst they can say is no right?

St. Cloud FL?
Yeah they will, how many offers have you presented?
Have they been on REO's?

Why can't you?

So? I know they don't but we still wholesale REO's. Just double close them!

The selling bank doesn't know (or need to know) anything about it.
You just close as per the deal but at the same time bring your buyers in and do a simultaneous closing with them on the spot, easy peazy.