Developer · Cedar Rapids, IA · Member since 2009 · 97 posts · 42 votes
I put a Cash Offer on a CitiMortgage REO Home for $30K, Asking price is $35k, needs some TLC but for the most part, it would be a sweet deal.
I put the offer on the day it came on the market with my Realtor who had to present to listing agent...My realtor followed up with the LA because of expiration and she said that the home has to be listed for 7 days in order to accept any offers....? I called her broker and they said they haven't heard anything like that...
I think its bull but what have you found in your travels? I am willing to pay full price and don't want to get beat out in the meantime...I'm also aware that sometimes they will list for Owner Occupied and then after no offers, they will accept offers from Investors..
Any help/insight is appreciated on CitiMortgage, Waiting Period, Offer. Thanks!
Now your eyes and mind are open! You hit it on the head there.
Your first mistake - Not having a relationship with the listing broker.
Your second mistake - making an offer on MLS day one at 85% of ask price. Not sure about your local market conditions, but in mine, no bank will entertain offers (even if all cash) that much below ask price without it getting some time on the MLS.
That is why having the relationship could be your cure all in this scenario. Imagine if you did. The listing broker would have let you know this was coming long before it ever hit the MLS, and you would already have an exact repair budget quoted. Secondly, you would have know what the BPO was submitted at and had that full price offer already written and on the top of the brokers desk waiting for submittal upon BPO approval at submit price (or lower).
I am also wondering if we're getting 'HOSED' by the listing agent b/c of her Commission and no Full offer. She may be waiting for one of her clients with full offer or will leverage ours and then she has full commish in her pocket instead of a split.
My Realtor asked if there is anything that would change the 7 Day Wait and she said she was just told by CitiMortgage that day.
Now your eyes and mind are open! You hit it on the head there.
Your first mistake - Not having a relationship with the listing broker.
Your second mistake - making an offer on MLS day one at 85% of ask price. Not sure about your local market conditions, but in mine, no bank will entertain offers (even if all cash) that much below ask price without it getting some time on the MLS.
That is why having the relationship could be your cure all in this scenario. Imagine if you did. The listing broker would have let you know this was coming long before it ever hit the MLS, and you would already have an exact repair budget quoted. Secondly, you would have know what the BPO was submitted at and had that full price offer already written and on the top of the brokers desk waiting for submittal upon BPO approval at submit price (or lower).
I know...I'm kickin myself in the A** for this one. Lessons learned for sure.
I'm thinking of sending an Offer of $35,250 this week, Friday is the 7th Day so they will accept offers then, maybe present offer on Wed or Thur...what do you think? What should be my steps now since I'm in this situation?
Thanks Will and I'm hopefull this deal will go through....it sold for $62,500 in '99, MV is probably $80k-$85k with $7k in Improvements after Purchase. I've watched this house go all the way through the process and I WANT IT IN MY PORTFOLIO!!!!!!
Wes,
This is a buyers market. I don't know if the home that you are after is in Cedar Rapids but here in Ft Wayne, there are more deals than I have the time and money to turn around.
I have found it valuable to never fall in love with a property because there are plenty others available, especially at this time.
I have also lost a few deals where I felt like the listing agent was "playing games." That happens and there is probably nothing that you can do other than to find another deal. I have made sure that I keep track of homes listed by a few agents and I steer clear of them.
My guess is that there are bunch more deals available that are as good or better than the one you are looking at.
I talked with the Asset Manager on this Property b/c the LA wasn't giving us feedback (which pissed her off obviously) and as of yesterday they were going to Counter my original offer of $30k....I talked to AM again this morning and he said there was another offer that came in above asking price roughly $1K more as I gathered by asking him all sorts of questions, same guidelines as my offer (cash, quick close, ect) So NOW it is going HIGHEST & BEST Offer...
Have you guys seen this or is this another legal bank unethical game these banks play? I think its Bull...
List price was $35k and now should I offer $36,500 to get it? This property would be worth it at that price...I had $43k in my mind originally.
Wes,
I never play the highest and best game because I know that I can get another deal.
However, if you believe that there is not another deal as good as this one then you have to decide if you are willing to pay the extra $$'s.
I have had times where I believed that the listing agent was holding my offer long enough to bring in another buyer. Tough to prove but at least here in Ft Wayne there is enough inventory to just say : Next.
My motto is right house, right price, and right location or I move to the next deal. Plenty of inventory to not be happy with where you end up.
You have to decide if this house at 36.5K is better than other houses available at that price.
Interesting, every single AM I know would tell you to take a hike and talk to the LA. This LA sounds new, or stupid, or both.
Sometimes highest and best is a in house policy on recieving more than one offer. You might have one offer for $10k and another for $30k, and they will still trigger highest and best... Not unethical, just your chance to set your offer apart from the others and win the property.
Yea, suprisingly enough the Asset Manager was a really nice guy and was very open minded to talking with me and explaining how they like things to work.
And Yes the LA is a Bonehead! :)
Few key things I've learned so Far that you may be able to use:
- CitiMortgage has 7 Days On Market Policy. Calander days...not Business days! Big difference.
- CitiMortgage does not close on calander days 25-31 so if you can schedule it allowing 15 days for closing and not on those days, thats a plus for them.
- Realtor Commissions for citimortgage: Sale price under $40k, each agent gets $1,000. over $40k, Listing Agent gets 2% (and has to pay for some expenses dealing with property) and the Buyers agent gets 3%. If the listing agent finds the buyer, they only get the 2% or 3% with expenses.
- They like $2,000 earnest money but $1,000 would suffice, higher the better obviously.
- Cash Is King in their world, they will take Cash Deal anyday over conventional deal even if its a much higher offer.
- Provide Financing Letter AND Proof of Funds with Offer.
The more of these things you can provide for them, the better.
I went against the grain and decided to play the highest & best...because I feel there is still a good Margin of Safety (I call it) and it would be a good long term investment. I'll let you know how it turns out.
Frozen fingers are crossed in a Blizzard in Iowa...- Wes
I just called around and asked who handled this property that is in REO.
I first called CitiMortgage (800) 283-7918. I then was transfered to the actual REO Department where they manage, maintain and realtors contact point to sell the property.
That Number is (800)-392-7906 - CitiMortgage REO Dept. From here, wait a little bit on the recording and then Press 3. You'll get in touch with a gal and just question her like crazy about the Property you're wondering about...she'll say that an Asset Manager can call you back and Boom! Your in business.
The Asset Manager I talked to was nice but I asked him dozens of questions about process, what he's thinking for numbers, other players and pushed him about Offer #'s to which they can't divuldge but ask him 'ball park figures' or 'is it close to ...?' type questions, you'll narrow it down even further.
He told me that the Appraisal #'s they received were in the $46k-$48k for this property, list price was $34,999.
Also, couple tips: Close ASAP, send cash offer with $2,500 Earnest Money and no contigencies...your offer will stand out like a sore thumb and you'll be filling your pockets with dough.