Inside an REO Conversation
February 12th, 2009 category: East End LI Foreclosures, Real Estate News
It was very interesting listening to one side of a bank owned property conversation.
My partner is listing REO’s (bank owned properties). What struck me was the simple reality of the bank owned side:
” My asset manager has told me that if the addendum isn’t received by them today, the contract will be terminated. There is nothing personal- they don’t view transactions on a personal level- it is what it is. It’s not game playing…. if the paperwork isn’t received today, there is no agreement. Just reminding you so that there are no surprises on your end.”
Bank owned properties, while more complicated that a “normal” transaction, operate in the absence of a seller taking things personally. Because pricing generates interest, and assets are costing money, fast turn-arounds are the objective/priority. Unlike a traditional transaction in which personal understanding on the part of the seller/buyer for the buyer/seller in the event of a minor glitch or need for time, banks operate solely from a numbers standpoint, and are not going to offer any level of personal generosity that a traditional sale might.
They’re inundated, and do not have the luxury of time to spend on occurrences outside of their own checklist- hence, deadlines are exactly that.
On the upside, if you are looking at a bank owned home (foreclosed), you’re getting a home at below market value in many cases- the urgency doesn’t permit much in the way of testing the market from a bank perspective.
Asset managers are the conduits, managing the marketing of properties assigned to them by banks, and distributing REO listings to real estate companies. Once an assignment is received by the real estate company, and the house receives offers, the clock starts ticking in earnest on the asset managers desk, andtime frames are provided with an understanding that: here’s this; here’s this; have this back in 48 hours; if it isn’t back…NEXT.
If you and your real estate agent are going to view bank owned properties, readiness is essential. You may find nothing; you may find a real bargain- either way, fitting into the bank-owned real estate experience will eventually become a reality if locating a foreclosure is your plan.
Awareness that you’re dealing with bank machinations in a non personal environment of deadlines will alleviate the shock when “tomorrow by noon” really did mean “tomorrow by noon”- awareness is a good thing.
If you are looking for foreclosed properties on the east end of Long Island, keep reading and sign up today.
To get more specific local North Fork real estate information, fill out the form below with your questions/comments. We’ve been monitoring the area for a few years, and have learned how to find properties coming on the market, and available. If you’re looking for a foreclosure on any part of Long Island, we’ll help you find it also.
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