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How banks handle REO's
Do you think it will be "business as usual" for banks' REO departments? It seems that many of them are building up quite the portfolio, and with lending more restricted, that certainly makes it more difficult to move real estate. Any ideas on whether and how the way banks deal with REO properties might change in the coming months?
Follow your bliss and the Universe will open doors where there were only walls. ~ Joseph Campbell
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09-01-2008, 10:45 PM #2
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Some banks need time to build up their reserves....their books look "OK" as long as they hang on to the properties at bubble value--but once they dump them at market value, take the writedown and adjust their balance sheets, the FDIC may have to make a Friday night raid.
Originally Posted by MissCritter
Do you think it will be "business as usual" for banks' REO departments? It seems that many of them are building up quite the portfolio, and with lending more restricted, that certainly makes it more difficult to move real estate. Any ideas on whether and how the way banks deal with REO properties might change in the coming months?
.But hey...Top Ramen tastes a whole lot better when you eat it off of a Granite Countertop. (Mr & Mrs Too Much Homebuyer)
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Off topic, but I was clicking around in Walton County recently on "big blue blocks" and was amazed at how many were owned by banks. They have one heck of a portfolio right now in our area.
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Who wants to bet that the next financial scandal is bank officers "dumping" foreclosed properties on their friends for rediculously good deals?
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09-02-2008, 05:09 AM #5
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Some come with built in financing that's hard to beat. Originally Posted by sowalgayboi
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Please elaborate. . . Originally Posted by AAbsolute
Follow your bliss and the Universe will open doors where there were only walls. ~ Joseph Campbell
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09-02-2008, 07:28 AM #7
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I've talked to loan officers
There are local banks who lent money to real estate investors. Many times the investor loans were not Conventional approvable loans, instead they were portfolio loans for the bank. When the bank took those back they took them as part of the portfolio. Those loans can then be released to a party as the bank sees fit without regard for Conventional guidelines. That said, banks can offer special financing on their properties. This will make it hard to beat. Originally Posted by MissCritter
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Gotcha. Thanks.
Follow your bliss and the Universe will open doors where there were only walls. ~ Joseph Campbell
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09-02-2008, 09:48 AM #9
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Not sure how Banks handle REO's, but I read an interesting article regarding Wachovia's selling bad land loans to investors. I assume once the investor purchases the land loans, they have the right to take back the underlying properties.
I've posted the link below:
http://www.thestreet.com/_yahoo/news...FREE&cm_ite=NA
Little Fish
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