Wholesaling a REO property?

8 Replies

Hi BP, I have a property that I interested in wholesaling. It is currently listed on the MLS for sale. When I lookup the property it is owned by Pennymac, LLC. I've tried to contact the listing agent (calls, voice mails and emails) and no response. What's my next step? Am I to contact the bank Pennymac to put an offer on for the property? Also are banks negotiable on REO properties?

Any help is appreciated. Thanks BP!

Since it is listed on the MLS you should go through the agent. It's surprising that he hasn't responded to you. I'm curious; are you leaving a generic message? Or are you giving a lot of details on your plans to wholesale this property? If you leave details. That's probably the reason you haven't heard anything. Contacting Pennymac will more than likely be less fruitful. They will say to contact the agent. And around and around we go. If the listing agent still doesn't reply. Get a different agent and let them know that you'd like to put in an offer on that house. Although, if your plan is to wholesale it. You might be spinning your wheels.

@Roland Paicely I'm leaving a generic message. I've emailed them and called a few times. I haven't told them anything about wholesaling the property, just that I'm interested and if they could call me back. Thank you for your insight.

@Eldrick S. It's very, very surprising that he hasn't contacted you.  Naturally, it's your call.  However, you can have someone other than the listing agent submit an offer for you.  It may not be what you're looking for.  But at least you can get an offer in.  Other than that, I'm wondering if the property is already under contract..................Good luck!  

@Eldrick S.

REO agents often handle 10s of homes at a time and sometimes 100 or more. They don't take phone calls from the general public.

Speak to a buyer agent in the area and they'll figure out how to contact someone on the staff that will entertain an offer. This information is in the MLS the general public doesn't see. The listing agent might be the name on the listing, but someone on their staff handles offers and showings.

In general, you can't really wholesale an REO. They want hard cash in most cases, not someone wanting to flip the contract because that means the bank is leaving money in the table.

@Eldrick S. To your original question, is the price negotiable? - in my experience, yes.  It depends on your area and also how long it's been on the market.   The last one I bought needed a lot of work (conventional lenders wouldn't lend on it as it wasn't livable, so that took out a lot of competition). I offered $50k on a $62k listing price and also asked for $2k in closing credits, which the bank accepted.  The dollar amount wasn't huge but the percentage off of list was a fair amount.

Good luck!

- Tom

@Eldrick S.   No, as others mentioned, I would agree getting a buyers agent to make the offer on your behalf is the best bet. The agent should also be helpful in knowing about what kind of discount may be acceptable (if any).