Buying a REO property after listing expires

4 Replies

How would I go about contacting the Owner/Lender (2 different entities) about making an offer on a REO that was listed on the MLS but has since expired?

You could look  up the current owner on the tax records, but the banks normally aren't real big on working directly with buyers (at least the big banks aren't for a single property).

I might try to contact the former listing agent to see what they know,,I've seen banks mysteriously pull properties off of MLS, let them sit for 6 months or so, and then re-list them,,I have no idea why in the case I am talking about, they pulled it in the first place.

andy

If its already an REO it is no longer with a private seller and now with a bank/lender. For them it usually requires a relationship to get a list of REOs and purchase directly from them. But if the listing expired call the agent and ask if it will be re-listed with them.

In addition the banks are very stubborn with price in the first 30-60 days, so now that it has expired they may be a lot more negotiable on price! Developing a relationship with REO Brokers/Realtors is always helpful as well.

REOs may have a listing expire, they will be relisted. The issue is that a bank needs collateral sold at arm's length in an open market to avoid the appearance of any areas of self dealing or selling in private deals being cut. Amounts that may be received from a sale go to the owner so a lender always has to avoid claims that they acted in a sale that diminished the possibility of a borrower being entitled to excess amounts.

There are many reasons a property may be pulled off the market, there can be legal matters, repairs to safeguard collateral, marketability issues or after exposure to the market a property may not be attracting offers, it can be pulled to relist later on as market perceptions of that property may change or as the market changes to obtain the highest price. Won't do you much good trying to figure out why banks do what they do, not in reality. :) 

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com

It shows the property was foreclosed on back in June and the listing was up for 6 months, so it was confirmed that listing did expire and wasn't pulled for other reasons.

As far as contacting the owner directly, public records show the loan was issued by one mortgage company, but another lender is listed as the owner.

I will check with the agent to see if it will be re-listed.

Thanks for the info. guys.