REOs on MLS?

Question

Are all Real Estate Owned (REOs) listed on the local Multi Listing Service (MLS)?

I know there are those that prefer not to use the MLS - and advise against it.  My intention is not to venture in to that debate again here - rather to understand if one needs to look elsewhere to see all REOs in our general geographical area or if they can all be found on the local MLS.

NA Cramb · Answer

Kurt,
I am not really familiar with your market, but just had a builder this week go under on 20 homes that he was in for 375k cost - retail in the $450-500k range.  The BPO's took them to a list price of $250-the bank doesn't want them.

Account Closed · Answer

I'm curious about these McMansions in CA that have been sitting on the market since Jan.  More forclosures coming in every month in that size and price range and getting financing for those babies limits the number of customers knocking on your door.  They must cost the lender a ton of money to keep up the yards and I've been hearing lots of stories about all those big pools going foul.  Based on historical prices I could afford to make an offer at the 1999 or 2000 price but that would be a big drop in the lendors price because of the way the market ballooned around here.  Anybody heard any stories about banks willing to dump McMansions for reasonable rates?

NA Cramb · Answer

Ingrid, counter back at $56k.  They haven't said no yet.
And Kevin, I spoke with my reo agent today who had 16 new bpo's for today alone and she said easily seeing 50 - 60% if the property had been listed for at least 30 days.  Discounts are incremental at the 30 day marks (30/60/90) with the different lenders. My agent works immediately with the asset managers who also have access to bulk depending on the area.  Some areas are easier to obtain thatn others. Bulk reo's means more work for me.  My business would need more help, and I don't want that.  I have a little niche that works for me.

Kevin Yoo · Answer

flipflopped,

So, in your market are you getting 70% or even less now with REO inventories ballooning?

And why don't you deal in bulk REOs? Do you not have access to the sources?

Ingrid Nagy · Answer

I've been following one REO for the past year held by Nationstar.  They've owned the house for one year this month.  Empty shell house, no kitchen, no hvac, toilets ripped out.  They've dropped from $100 to $69.  I offered $55K.  They countered $68 for a darn shell of a house.  Listing agent told me NO ONE but me has made an offer all year.  I wish the 80% rule would apply but apparently not with them.

NA Cramb · Answer

Kevin,
6 months ago I went into a huge reo brokerage and looked through what the broker closed, dom, and for what kinds of discounts.  Solidly, nothing went below 80%  I can tell you now, the tide is changing...in a big way.  The reo brokers are loaded with properties they can't sell for the banks...they are groaning with inventory.  Now, it's easier in my market to buy reo's...bigger discounts.  I buy for myself and private investors.  I don't work with bundles/packages. I still do shortsales, but those reo's are looking better and better to me. The flipping issue...how to wholesale the shortsales has been a sticking point for me.  I struggle with it, and am constantly looking for ethical ways around it.

And Christian, in GA the MLS is not often used as a service called fmls.  Same thing really, though.

Christian Malesic · Answer

I do not think we have flms here.

Our MLS service locally is called Paragon (trade name), but the Realtors still call it a MLS.

Thanks for the response(s).

Christian Malesic · Answer

What is the 'fmls'?

Kevin Yoo · Answer

flipflopped,

Are you an agent helping individual buyers or do you help in buying REO packages? Which is easier shortsales or REO purchases?

NA Cramb · Answer

I don't just work reo's. I do lots of shortsales as well.