yes we have a broker working with us. the house is in pike county. What is a REO? I have never heard of that. And yes the loan got sold in a bulk deal. It sounds like we either wait a little longer and see what happens with the house to try again or start looking for another one.

Pike county yes you are way on the other side of Atlanta from me I am in Cherokee county which is on the other side of Atlanta from where you are.

Are you buying this to live in or for an investment property? If for investment there are much better deals out there.

Have you ever thought about investing in commercial property?? VERY LUCRATIVE with alot of upside....

REO stands for (real estate owned) it's what the banks call there foreclosures when they take them back. See what is likely to happen is the bank will bid the property at the courthouse steps when it forecloses,if knowone wants to pay the bid price for cash which about 90 percent of the time knowone will because the equity spread isn't good enough the bank will buy the property itself. Then the bank spends about 1 month making sure title is clear and orders broker price opnions and an appraisal to set a listing price and then list it for sale with an REO agent/broker.


If you want to buy investments you need to make sure you are with someone who understands the process because it is alot different from conventional sales.

good luck

If you have cash why not buy at the steps??????

Example alot of homes have 80/20 loans on them.So if a house was bought in 2005 for say 200,000 and now is worth 220k. The owner has it listed for a short sale but knowone is buying.

There are 2 loans on the property one for 150,000 and the second loan for 50,000. After 3 years the balance on the first mortgage was 143,000 but with the homeowner behing on payments for 5 months along with attornies fees,penalties and interest the amount owed is now 153,000 on the first mortgage.

Now at the courthouse steps the second of 50,000 will be wiped out when the first forecloses so you go in and bid 153,000 cash at the steps and WIN. You now have bought a 220k house for 153k which is a good deal!

Now if you were renting this out or flipping you would probably want a bigger margin then that. This is just an example and short sales are different depending if it's an 80/20 loan,fha,va, and if there is mortgage insurance involved or not.

I think you would probably do better going the reo route or bidding on the steps since you have cash.Short sales can take months to close and I am suprised your broker has not told you this.

I agree with super realtor, you can find great deals through REOs. But one thing I want to add, there's always reasons why properties do not sell in foreclosure. Many of the REO properties are damaged, even if it's not superficial, there may be mole problems, piping problems, etc. Issues that may cost you more than the property is worth.

I personally think REO investing should be left to the professionals who can spot the problems and have plenty of capital for reserve.

I'm an analyst on Wall Street that specifically deal with distressed assets, I've seen too many drive-by BPOs that just completely inaccurate due to issues inside the house.

Just my 2c
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