Buying REO from US Bank

12 Replies

I'm trying to buy an REO that's currently listed from US Bank here in the Phoenix area. I'd like to work directly with the bank (I have experience purchasing preforeclosures and have had to deal with banks in the past). Does anyone have any advice on how to deal with them or a phone number to reach their REO department and get on the phone with the right person?

Thanks in advance!

Originally posted by @Joshua Hill :

I'm trying to buy an REO that's currently listed from US Bank here in the Phoenix area. I'd like to work directly with the bank (I have experience purchasing preforeclosures and have had to deal with banks in the past). Does anyone have any advice on how to deal with them or a phone number to reach their REO department and get on the phone with the right person?

Thanks in advance!

I have been told you can't really deal directly with "the bank" for REO, but if the property is listed on the MLS, there might actually be a REO auction website that is the real listing. EG, xome.com, auction.com, hubzu.com, privatesellingofficer.com etc. Google the property address and look through the listings for a non-realtor website like one of the above, and if its listed there, deal with that website directly. I have bought several from US Bank this way, I think because I bypassed the listing realtor and put a strong offer in directly on the auction website.

if you are trying to buy an REO "listed" from US Bank...call the number on the "listing". You aren't going to work with US Bank directly.

@Nicky Reader

Could you tell us a bit more of how you made that happen?

I would have thought that the auction site would stonewall you and say "if you want the property be at the auction".

In your experience what % above the starting bid do you need to offer for them to consider?

Originally posted by @Eric Delcol :

Nicky Reader

Could you tell us a bit more of how you made that happen?

I would have thought that the auction site would stonewall you and say "if you want the property be at the auction".

In your experience what % above the starting bid do you need to offer for them to consider?

I probably made it sound more "top secret method" than I meant to.. 

When they put bank-owned homes on the "online auction" websites like Hubzu, Auction.com, Xome.com etc, they sometimes also list them on the MLS with a listing agent. If I happen to stumble into a MLS listed REO that I am interested in, I search for the "online auction" website in google, using the property address. THEN I submit any offer directly using that website. If there is no auction website, then I do have to work with the listing agent.

Normally I obsessively check the online auction websites for my areas of interest, but sometimes I do notice an auction listing on the MLS first. The other benefit is it helps me build up my list of auction websites to check routinely.

True, any "physical auctions" that you need to be there for, you need to be there for. 

As for the number I offer, I work out my "highest and best" (ARV - rehab costs - margin), then pick a number between that high-mark and the auction's price. I have all sorts of superstitions for picking the actual number I offer, and sometimes I win and sometimes I dont. I can't for the life of me figure out the numbers they pick sometimes.

I can give you the REO agent who is handling any auction.com property, any time. Just email me.

You have to contact the asset manager. Getting his number is a different story though.

I am in a property I was renting that got foreclosed on. US bank has the title. It isn't listed on any auction site and the asset management company that auctions that does not have it yet. We are still occupying the property. I want to put in an offer directly to the bank and am already underwritten and ready to close. How do I speak with the person who has the file on this house in the bank? I had a certified inspector go over the place and there's a lot wrong with it, but we want it.  The listing agent doesn't want to pass the offer along cuz she wants as much as possible. They don't have to disclose things like mold to any potential buyers in the State of Florida where we're at. We know what's wrong and we'll fix it right. Just trying to find the right person to review the offer.

Originally posted by @Miguel Bey :

I am in a property I was renting that got foreclosed on. US bank has the title. It isn't listed on any auction site and the asset management company that auctions that does not have it yet. We are still occupying the property. I want to put in an offer directly to the bank and am already underwritten and ready to close. How do I speak with the person who has the file on this house in the bank? I had a certified inspector go over the place and there's a lot wrong with it, but we want it.  The listing agent doesn't want to pass the offer along cuz she wants as much as possible. They don't have to disclose things like mold to any potential buyers in the State of Florida where we're at. We know what's wrong and we'll fix it right. Just trying to find the right person to review the offer.

 I'm going to assume your low balling the listing price if its listed and the listing agent won't present your offer. Maybe the owner said not to present any low ball offers to them? I don't know the specifics. Only you and the listing agent do. If you think they are being unethical or violating any of their duties, file a complaint. If you are just low balling because you know what its worth, maybe that's part of the problem?

there is mold in the house. Lab results came back positive. The ceiling was leaking before Irma, but as a result of Irma it needs a new roof. That's not counting ripping out drywall, replacing sheetrock, and any wood rot which there is some. It needs an exterior paint job, etc etc. The dishwasher doesn't work and the microwave turns on when you open it. So yes we are offering what the house is actually worth. I know they'll just slap some paint on it and sell it. We looked into it and in Florida you do not have to reveal mold to a buyer or someone you are leasing or renting to. Why would we pay the going price for a house of that caliber that does not need a roof and does not have mold and does not need an exterior paint job, Etc? We have the reports along with our offer so the bank and see what's wrong with the house. If someone reviews all that turns on the offer that's one thing, but doesn't she ethically have to show them any offers? I suppose if they told her otherwise that's one thing. The Realtors I spoken to in the area disagree. Any offer is a good offer when they sat on this house for 8 years and it hasn't made them a dime. The man we were renting from bought it at an auction for what the association node because the banks attorneys never showed up. The original lender signed a promissory note so our landlord slash neighbor was never liable for the money owed. We just want the offer considered. It's a fair offer for the condition of the house.

In the context of purchasing a REO property how are you guys funding the deal? I know cash is king but what are my chances of using a conventional loan? The property is owned by US Bank.

List price: $99k ARV: $125k  Rehab: $25-30k

I've been pre-approved for a 30 year fixed but I'm worried about the inspection/lender requirements for move in ready. Any advice would be much appreciated! 

Originally posted by @Miguel Bey :

there is mold in the house. Lab results came back positive. The ceiling was leaking before Irma, but as a result of Irma it needs a new roof. That's not counting ripping out drywall, replacing sheetrock, and any wood rot which there is some. It needs an exterior paint job, etc etc. The dishwasher doesn't work and the microwave turns on when you open it. So yes we are offering what the house is actually worth. I know they'll just slap some paint on it and sell it. We looked into it and in Florida you do not have to reveal mold to a buyer or someone you are leasing or renting to. Why would we pay the going price for a house of that caliber that does not need a roof and does not have mold and does not need an exterior paint job, Etc? We have the reports along with our offer so the bank and see what's wrong with the house. If someone reviews all that turns on the offer that's one thing, but doesn't she ethically have to show them any offers? I suppose if they told her otherwise that's one thing. The Realtors I spoken to in the area disagree. Any offer is a good offer when they sat on this house for 8 years and it hasn't made them a dime. The man we were renting from bought it at an auction for what the association node because the banks attorneys never showed up. The original lender signed a promissory note so our landlord slash neighbor was never liable for the money owed. We just want the offer considered. It's a fair offer for the condition of the house.

 No argument with your logic but at the same time, if there is no violation for the lender slapping paint on it, you can't really argue with their logic either. You could but, you'd be arguing with a rock. For sanity sake, maybe you look for a house with a good roof, working microwave and no mold?

Originally posted by @Jaron Walling :

In the context of purchasing a REO property how are you guys funding the deal? I know cash is king but what are my chances of using a conventional loan? The property is owned by US Bank.

List price: $99k ARV: $125k  Rehab: $25-30k

I've been pre-approved for a 30 year fixed but I'm worried about the inspection/lender requirements for move in ready. Any advice would be much appreciated! 

Slim. If you have patience and drink excessively, maybe a 203K loan would work, otherwise, I'd look for a turn key home. 

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