REO OFFER

[Anonymous]

--I just pulled my offer on a short sale because it was going to take the sellers bank to long to get back to me on my offer. I found a REO property that went on the market 5/19/08. The asking price on the property was 74'900 the property was bought back from the bank for 66k. I made an offer of 77'147 with 3% going to closing costs. The bank is US Bank.

     I'm wodering if that is a strong offer, has anyone dealt with US Bank on an REO, and what kind of time frame have you expirenced on REO properties????? Thanks in Advance everyone, this sight has been huge help.

[mwr1ght]

I am in a purchase agreement right now with a US Bank owned property in Lansing, MI. The asking price on my REO was $74,900. I offered $70,000 with concessions such as 3% for closing cost, and $1600 to be escrowed for half of the 2008 non homestead property taxes. They accepted my offer. I also have the concession I can pull out if the inspectors report comes back with issues I do not or cannot deal with. I wonder if I would have offered less for the property if they would still have accepted my offer. It looks decent visuallly yet it has been vacant for a year. I get my inspection tomorrow, so we shall see what the report says.

Good luck to you!!

[Anonymous]

How long till you heard a response from the bank once the offer was made??

[mwr1ght]

I made the purchase offer on a Friday, found out the following Tuesday so it did not take that long. I was actually impressed at how fast they made the decision. I expected it to take much longer.

[Anonymous]

I made my offer on 6/19. I hope the bank will get back soon because we have to either renew our lease for another year or state we are moving out. This is due 6/30 if we dont renew our lease would be up up 7/31. I'm just really nervous my realtor is not that motivated. She says "its an REO which means you have to wait on a bank". I think if our best interests meant anything to her then she would be calling the selling agent at least once a day and following up with us once a day. I havent heard a word. We have already had to pull out an offer on a short sale because things didnt seem to be getting done. The roof needed replaced so I wasnt to upset. STRESSED any ideas??? I have already gone to Us Bank reo.com and sent them an email about my situation. I know its a long shot, but I figured I would try everything. This site handles all of Us Bank's properties. I know thats going over the agents, but at this point I could care less.

[Anonymous]

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rjeps wrote:

I made my offer on 6/19. I hope the bank will get back soon because we have to either renew our lease for another year or state we are moving out. This is due 6/30 if we dont renew our lease would be up up 7/31. I'm just really nervous my realtor is not that motivated. She says "its an REO which means you have to wait on a bank". I think if our best interests meant anything to her then she would be calling the selling agent at least once a day and following up with us once a day. I havent heard a word. We have already had to pull out an offer on a short sale because things didnt seem to be getting done. The roof needed replaced so I wasnt to upset. STRESSED any ideas??? I have already gone to Us Bank reo.com and sent them an email about my situation. I know its a long shot, but I figured I would try everything. This site handles all of Us Bank's properties. I know thats going over the agents, but at this point I could care less.

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I used to be a leasing agent, try asking the property manager if you can stay an extra 30 days. They may have a policy for this, we used to charge $100 over the market rent for the unit.  It's a higher price to pay, but certainly worth it for the piece of mind and to alleviate the stress...

[Anonymous]

I have already tried that and there is nothing in the lease about month to month. I also have reason to believe the landlords friend wants to move into our unit which means asking for a favor very difficult. If we don't put it in writing by 6/30 that we are moving out its an automatic 1 year renewal. That is in the lease. STUCK AND STRESSED

[Anonymous]

It doesn't necessarily have to be in the lease. You should check what your local rental/tenant laws are. In many areas, there are specific rules as to what can and cannot be in a lease. You may actually be entitled to a month-to-month tenancy at the expiration of the original term of the lease. Don't take the lease at face value. Many landlords put things in leases that are not allowed by local/state law either out of ignorance (using a generic lease they got off the internet that doesn't necessarily apply to their area) or in hopes of putting one over on an uninformed tenant.

[Anonymous]

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BobSki778 wrote:
It doesn't necessarily have to be in the lease. You should check what your local rental/tenant laws are. In many areas, there are specific rules as to what can and cannot be in a lease. You may actually be entitled to a month-to-month tenancy at the expiration of the original term of the lease. Don't take the lease at face value. Many landlords put things in leases that are not allowed by local/state law either out of ignorance (using a generic lease they got off the internet that doesn't necessarily apply to their area) or in hopes of putting one over on an uninformed tenant.

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Yep, I would check. I would also just call and ask the Landlord. Even if he has someone that wants to move in,  he may be inclined to let you stay knowing he'll make a little extra cash. So it's a win/win for both parties. I would also put it in writing if he allows it, or write a letter explaining the agreement and send it WITH your check for the agreed upon amount. Just to CYA.

[JuliaTN]

To answer your original question: Yes, I'd say that's a very strong offer and very likely to be accepted.  As far as response times go, it varies wildly even within the same lender, depending on how busy the asset manager handling the sale is. Lots of times the listing agent will specify in the agent notes (the public does not see) how long they think the response time will be. If your agent truly isn't performing, call the listing agent and explain the situation to see if they can bump you up in line.  What offer expiration date did you put on the offer?

Keep in mind though, that even if the offer is accepted you still may not be able to close before the end of July so keep your options open regardless.