Stacey Maxwell

• Manage |RSSForeclosure Real Estate Investor

Don't give up if it has been rejected at auction, there is post auction bidding that still goes on. Additionally, there are cases where they can't get in touch with the investor the day of auctio and have to reject based on the reserve amount they are given pre-auction. It is possible that the offer will be submitted post auction and the investor will accept it. Believe it or not, there are many properties that are being sold at these auctions that get bid up past where they could have been picked up pre-auction.

You left out one of the most important yet least discussed aspect of an REO transaction. The majority of the banks that have REOs are only the servicers of the mortgage loans. In otherwords they are responsible for collecting funds and managing the accounts for the loans that have been sold to individual investors. These investors have bought packages of loans known as mortgage backed securities, made up of many mortgage loans. Each investor has their own risk tolerence. These investors are often hedge funds, pension funds, REITS ..... The sale price of the REO is, and must be determined by the investor not the bank. During the REO period the perameters for the individual investor may change, and there can often be a lack of communication between investor and servicing bank. Unfortunately the bank appears to be the glitch when often that is not the case. Best advice to buyers of REOs is to wait a minimum of 30 days after the REO has come on the market to begin the process of initiating an offer. Even better to wait 60-90 days. You'll do much better job of negotiating.