Bank Owned Properties

If you are buying an REO then the bank wants to see some money down. the percentage would be up to YOUR lender as far as how the structure the loan. Your other quandary is that the bank will want a PRE APPROVAL LETTER from your lender spelling out the loan amount approved for. So if your approval amount will not cover the offer price they will want proof of the balance

it also will vary from bank to bank wheather they are willing to hold the note on that prop again. Most will just want to get it off their books!

D

Estimate property worth 522,000 (from internet sources).

Selling for 389,000

Needs 60,000 to fix up

FICO 743

I offered 330,000 can I:

1. get 100% financing
2. finance the down payment from the same bank or another bank?
3. promissary note
4. down payment given in payments with higher interest?
5. any other ideas?

Thanks

have you already gotten pr-approved for an amount

I've gotten a pre approval for over 500,000

you can get that for 330k w 60k repairs and it has a ARV of 522k. DO IT, that is a great deal.

what's the earnest money 500 or 1000. This is new news to me.

Thanks

What is an Earnest Money Deposit?

It's a good faith deposit but not to be confused with a down payment. When buyers execute a purchase contract, the contract specifies how much money the buyer is initially putting up to secure the contract, to show "good faith," and how much money all together will be deposited as a down payment. The balance is generally financed as a mortgage or a combination of mortgages. An earnest money deposit says to the seller: "Yes, I am serious enough about buying your house that I'm willing to put my money where my mouth is."

what do think about changing the verbage on the contract to read 'upon acceptace of this agreement" instead of the default "upon signing this agreement"

When I did that the other day my realtor had a problem with it...said my offer was now weak and prob would not get accepted.

D

I always use the language "Upon acceptance ....". I guess the realtor is saying that the acceptance can be verbal where as the standard lingo in your area makes it more specific that the seller's acceptance is in writing. I personally do not see any difference in either approach.

D
I think that would be fine.

what do you guys feel is the easyest way to get the TAX ASSESSED VALUE of a property, the internet, going to the courthouse, etc. THE WORLD NEEDS A HERO,SULLY.

Should be able to get that online at your county website, or call the tax assessor's office. But remember, that won't necessarily be what the property is worth. I usually have to start there, though, because I have a heck of a time getting comps.

what you mean about the COMPS,SULLY.

Yeah.. what Rina said.. But why do you want the assessed value?? Are you wondering what the property taxes are??

for my area. but why would I want to know the tax assessed value?

i was wondering what was the easiest way to go about getting that info, thats all,SULLY.

They also list the FMV. I'm assuming that means Fair Market Value. It seems pretty close around here. The last few places we've had appraised have appraised higher than their FMV so I feel like it is a safe number to go by.

I came across 3 investors that are looking for property and advised me that they are willing to invest in me. I believe this question may have been asked before, but what do I do to protect myself from getting taken? I have decided to focus right now on locking up deals and assigning while I am working on improving my credit. Any suggestions?

get the contract under contract with a written purhcase agreement with an ASSIGNMENT CLAUSE. YOUR HERO,SULLY.

WOW dude thats awesome!!! How'd ya get them on board?

D

I don't put earnest money on mine until the offer is accepted. I've talked to my realtors and they've agreed that we will almost always put in a verbal offer and see where is goes from there. If the seller accepts the offer then we'll sign the conract and put some earnest money down. So ask your realtor about doing it this way instead of signing a contract on every offer. Usually I will go look at the property with my realtor and then go home to calcuate the offer, I don't generally offer on the spot. I then call them with all the offers that I've calculated. Good luck everyone and keep up the great work!

normal procedure? Make an offer to purchase, then when accepted sign the agreement and put down earnest money?

I just give a check when the offer is accepted. That's all that's ever been asked.

I see what you're saying. I didn't know what everyone else did, I'm just writing my process. I like the check idea. But, if there is a counter offer then I may sign one and put it down to see what happens. I just made myself look a little stupid. This is one of those times that I kick my self in the butt and laugh. Anyway, good advice anitarny and Rina. Thank you for your words.

I think I was actually agreeing with what you first said. Now I can't tell. lol!!

It's not actually standard, no. Most sellers want a check with the offer but the check is not deposited until acceptance.

Anita's practice (check copying) is solid...

marks correct, NICE SULLY.