I have a few possible investor clients interested in purchasing REO's....they are asking to do creative financing.....contract for a deed....etc......Do the banks do this...or are REO's pretty much a cash sale as far as they wont work with a buyer.....just want cash...and nothing else
Thanks
all

They want cash, or regular financing. They require proof of funds or a prequalification letter. But go for it if they want you to.

Waste of time. Get you soem serious investors and not clowns. An REO priced correctly will have a cash offer wihtin 24 hours. The asset manager and the listing broker knows this. Even if it is overpriced some they will just submit a new BPO report and do a price drop rather than get in bed with a quacky investor trying to tie up a property.

The investors might have more success with desperate sellers in pre-foreclosure or builders holding homes local banks are eager to help them sell. With these you can get into creative options.

By the time it hit's REO the banks just want it gone under accpetable terms outlined above.

If I had a nickle for every idiot that calls me claiming to be an "investor", I'd have a house full of nickels.

Sometimes I feel like no one in this market actually works, they are just "investors".

Financial institutions, by their very nature, are not "creative" and I've never, in 15 years or so of handling REO's, heard of one that will do a contract for deed.

Tony,

The reason that banks have no interest in creative financing/seller financing is that they want to get these properties beyond them as quickly as possible. Any form of creative financing means that they (the bank) will be in the picture for some period of time.

Investors all over the country want the banks to bend their procedures for just them -- but the bank won't. It is kind of like asking them to give you special loan terms on your car -- not likely to happen.

Thanks all...I sort of figured that was the case but I wanted the opinions of my AOL folks here.....thanks Staggart,super.roadkill and colobroker

I think we pretty much all agree that "creative financing" helped get us in a mess. Getting out of the mess pretty much involves going back to the basics of buyers having to put some skin in the game.