OfflineI am negotiating a PA on an REO. My broker (he's great) had no problem submitting it with an assignment clause. So far the bank is willing to negotiate.
I believe I already have an end buyer (cash purchase)What do I need to watch out for? I am a little nervous because this is my first REO. I used a POF letter to submit the offer. I could go with a transactional funder and close with back to backs, but would rather keep it simple, pay out less, give the end buyer a lower price, with an assignment. I live in Pennsylvania.
Any input would help. Thanks
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posted a little later, but here are some basic things to consider. First of all I assume you thoroughly checked out the condition of the property. Done your due diligence and let your broker check out any clauses that pertain to the property. Get the PA completed with good contingencies in it, and collect your non refundable EM (the more the better). Stay in close contact with your buyer and hold their hand until it is closed. Ive heard buyers remorse kills a lot of deals. Since this is your first REO, also have your lawyer by your side. Best of luck and let us know how things go.
Steve
We seldom get what we want, but we will always get what we expect.
There's quite a bit of info on assignment of REO's on this website, but to sum it up, 99% of the time they won't allow assignments. You could be that 1%, it all depends on the bank, so please let the DG Family know how it goes.
I've purchased a few REO's over the past few years, and they will counter with their own contract. In the contract it will specifically state no assignments, usually along with other items like cashier's check only for the deposit.
Steve's response above is great info too (FSBO's are your best bet for assignments).
You can get some great deals through REO's, so wishing you the best of luck!
- Tom
Does anyone have a suggestion on how to purchase a REO that i have found? This house has been forclosed on by (BAC ?? ) and the only # that is on the house is the # to the property managment company and they wont tell me anything! And does BAC stand for bank of america? THANKS.
Steve - I just replied on your other posting in detail. For a large bank, you may have to wait until it hits the MLS.
- Tom