Making an offer to a Bank REO

If the HML has already approved the transaction then I would say CASH OFFER and provide them with the proof of funds letter from the HML. I would think the bank would be more willing to accept the offer if it says CASH. It is not considered conventional financing, so I think CASH would be appropriate. Northwest has done a deal to with HML. You might want to ask him via PM.

Hi. Just like to ask this question. From reading some of these posts I just want to try to understand this better. If the house costs 200,000 and the bank accepts an offer for 160,000. Now my question is. Is the bank going to ask for proof on the 160,000. This is where I'm getting confused. what i would like to try to do is to assess this property to another buyer. And if the bank wants proof 160,000. How do you show the bank the proof of the 160,000. Not having any money credit. Sorry if this is a dumb question. Just a little confused.

You don't ever want to show the bank that you have access to more money than what you're offering on a house. If they see that you have more funds then they will automatically start asking for a higher price than you offered. There are several things that you can do to get proof of fund letters. Hard Money Lenders are a good source. They don't look at your credit score. You can get the letter, but it doesn't mean you have to use their loan. You can use the letter as proof of funds. HML will give you a loan for up to 70% of the value of the home. It sounds like you might wholesale property. You would make your offer CASH, saying that you have the money coming from a private party and then give them the proof of funds letter. You lock up the property for 30-45 days using some contingency clauses like subject to inspection or subject to buyer's associates approval. This way if you can't find a buyer, you can walk away from the deal. Good Luck.

Thanks for writing back. So if I understand this right when you get this letter there is no dollar amount attached to it. it just shows the bank that you have prove you're able to buy the house. And then go about doing what you have to do to get the house sold. And making sure that the clause are in the purchase and sales agreement so you don't get stuck with the house.

Kimmy you gave a very accurate answer to that one above, :'}

Mac388 - you are correct in that - just continue as you would on all other aspects. They only need to know that you were APPROVED - not the dollar amount.

This was a question I had as well. Thanks for the great answer. I'm trying to gain the courage to attempt to make an offer on a property. Good luck!

Hey thanks for the info. Now I just have to get the courage up to make some offer.

what do you have to loose - the worst they can say is NO - and thats only a pre-cursor to YES!!!!

Thanks Anita! That is the ultimate compliment coming from you! I have missed you lately. I always refer to your posts for any questions I have. I hope you will be posting again!

KimmyJ

awwwww....you sure know how to make a girl feel good. I needed that one. SMILE

Yes I am back in a much less hectic place in my life right now and I will be posting daily once again. So look for some pretty interesting things coming from my way.

I made 15 offers on REO property before I got my first one! Just make your offer and see what happens. Don't get tied to the result and just keep moving forward. Find a property, put a date on the calendar and tell yourself you will submit your offer by that date. Just do it!

good luck!

rbncowgirl, thank you for the positive words! We are taking your advice and not getting caught up in the results. We are thinking positively and moving forward and DOING IT!! We have 4 offers in and 2 more tomorrow, and we are constantly working on finding more properties to make offers on. It's very exciting! Can't wait for that first offer to be accepted, and yet even this part is pretty fun!!

We got two offers accepted the same day, then the next morning we got the third acceptance!! It happened all at once and then it felt like the floodgates opened! We had COE on all three properties mid/end of January and are just finishing up the first two to get back on the market....one property didn't need much rehab (cabinets/floors/paint/fixtures) the other needed a TON of work (pulling fences, adding a wall in the kitchen, new cabinets throughout, new doors, paint, drywall....everything but a roof!) We are almost finished with this one - got a call from the boyfriend tonight that he ran out of paint mid-spray - ugh! We only bought 3 five gallon containers.....should have had a back-up! Oh well, live and learn!! LOL

Best of luck to you and I know the floodgates will open for you soon! Keep me posted!

Camille