OfflineWOW!
I have just spoken with my Realtors and it seems that we wholesalers will not be able to buy REO's if we wish to do anything but hold the property for at least 60 days from the sale to us!
I have had several counter offers come back from 'BofA'...which holds 80% of the REO's in our nation right now...saying that a condition for my offer, to even be considered, is if I will agree to a "Deed Re-Sale Restriction" they are demanding as part of the sale.
This condition of sale reads like this...
~~~~~
Please indicate whether or not the Buyer agrees to deed restriction as follows:
"Grantee(s)/purchaser(s),of the property may not re-sell/record an additional conveyance document/or otherwise transfer title to the property within 60 days from Grantor's execution of this Deed.":sick :sick
~~~~~
So, in my opinion, 'BofA' is saying that they want to get rid of any wholesaler that wants to do a flip investment or anyone that has been doing a service to investors by finding them properties and then doing 'Double-Closings' with them.
My Realtors have informed me that if I do not accept this condition, my offer will be immediately rejected and closed.
Any comments on this new action by the Banks? Anyone else facing this in the other parts of the country?
I would need to now get the actual loans from the 'Hard-Money' lenders thereby increasing my costs to hold the property for an additional 60 days! And my Realtors have said that without doing this it would severely limit the possibility of properties to make offers on using 'Double-Closings'.
Theo T.
CogniWorld-LV
The problem with not having a goal is
that you spend all of your time running
up and down the field but you never score.
-Bill Copeland
It's a counter offer. You agree or you don't.
They want to sell or they don't.
You don't get every offer.
Try countering their counter offer.
If they are motivated on the particular property you are offering on, it is amazing what they will agree to.
But you don't know until you ask.
Are you offering on any REO's not held by B of A?
Maybe there are real estate agents in your market who have additional skills negotiating with banks on REO properties.
Keep in mind not all agents are as experienced as others.
Sometimes agents are intimidated by banks, sometimes intimidated by counter offers and sometimes intimidated by what they don't know how to do.
Press on.
Happy Investing!
Think Less ~ Do More
Take Action = Results!
If it is to be, it is up to me.
It is always interesting to get the views of other DG Family Members...
I have countered every offer with the condition that the 'Deed Restriction' be removed! We will see what happens soon. And one of my Realtors is still sending me deals from 'BofA' anyway.
Theo T.
CogniWorld-LV
The problem with not having a goal is
that you spend all of your time running
up and down the field but you never score.
-Bill Copeland
Am I the only one wondering what happens with a bank that owns 80% of the nation's REOs?
Maybe that's the real reason behind their new $5 debit card monthly fee.
Just thinking out loud.
I have just spoken with my Realtors and it seems that we wholesalers will not be able to buy REO's if we wish to do anything but hold the property for at least 60 days from the sale to us!
I have had several counter offers come back from 'BofA'...which holds 80% of the REO's in our nation right now...saying that a condition for my offer, to even be considered, is if I will agree to a "Deed Re-Sale Restriction" they are demanding as part of the sale.
This condition of sale reads like this...
~~~~~
Please indicate whether or not the Buyer agrees to deed restriction as follows:
"Grantee(s)/purchaser(s),of the property may not re-sell/record an additional conveyance document/or otherwise transfer title to the property within 60 days from Grantor's execution of this Deed.":sick :sick
~~~~~
So, in my opinion, 'BofA' is saying that they want to get rid of any wholesaler that wants to do a flip investment or anyone that has been doing a service to investors by finding them properties and then doing 'Double-Closings' with them.
My Realtors have informed me that if I do not accept this condition, my offer will be immediately rejected and closed.
Any comments on this new action by the Banks? Anyone else facing this in the other parts of the country?
I would need to now get the actual loans from the 'Hard-Money' lenders thereby increasing my costs to hold the property for an additional 60 days! And my Realtors have said that without doing this it would severely limit the possibility of properties to make offers on using 'Double-Closings'.
Theo T.
CogniWorld-LV
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
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Hey Mark,
Do ya think?
And it's our federal tax dollars supporting those 'Hidden Inventories' that the banks are holding in order to surpress the falling house prices...
Theo T.
CogniWorld-LV
The problem with not having a goal is
that you spend all of your time running
up and down the field but you never score.
-Bill Copeland
whether or not you accept their offer; We have had them reject 7 offers of ours in the past 6 weeks despite us being about 2K apart on the price. We have seen BOA just pull houses & let them sit for 1.5 to 3 years if they don't get there price. And the BPOs they getting in our area are higher than some of the private homes listed on the MLS.
It's hard enough to get any REO offer accepted any more, they just don't deal like they used to ... I don't mind holding for 60 days, hell I was used to the Fannie Mae 90 day restriction.
Hi Gary & Jill,
Ya, but for a wholsale investor just starting out, it can be hard if that person is without the money to support such a time in holding of the property?
For a seasoned investor such as yourself...60 days is the time it takes to rehab and find a tenant. That is just normal.
I, on the other hand, am in need of doing double-closes with other cash investors. There is where my problem with Bank of America and the others makes it very hard to deal with.
Theo T.
CogniWorld-LV
The problem with not having a goal is
that you spend all of your time running
up and down the field but you never score.
-Bill Copeland
Then walk away. When their financial condition gets bad enough, they will sell. What they are telling you is that they don't really need to sell. They may also be required by the federal government to have that restriction, I don't know for sure. Don't give up though, just keep putting offers out, maybe they will eventually come around.
Good luck!
RENinja
"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee