Tips on REOs?

[daedalus]

Did a search in this subforum but, to my surprise, I only got 1 hit on REO.  I'm looking to put an offer in on a REO that's owned by Chase (nobody get excited, it's pretty far from Irvine ).  The wife and I saw the place today.  It needs work but the bones are good. 

More info:
Bank bought it back for just over $800k in October
Listing agent says it has been available for a few months, but popped up on Redfin only this month
Listing agent says there is 1 other offer on the place
Curiously, the previous owners trashed the place, but seemingly without very much resolve
Some things are missing...faucets, disposal (YUCK!), trash compactor, kitchen drawers, etc.
There are electrical issues.  Some outlets don't work and it looks like some wires have been ripped out of conduits in spite. 
I'm mostly concerned about verifying plumbing drain lines, making sure they're not maliciously clogged.  Can't do that with the water turned off.  I think this is low risk though, since the rest of the house is mostly intact.

Any tips/advice from those who have been down this path?  Do my odds increase by having the selling agent write the offer?  (I assume so, if only slightly).  What's the likely incentive offered to the agents by the bank?  How about the loan--am I better off going through Chase?  I see some very attractive rates on amerisave.com, and I know people who have used them with success.  Given that the property has already gone through foreclosure and that the bank owns it, do I need to worry about liens, title issue and the like?  How do I CMA on a REO?  Should I look to hire a RE attorney or pay a realtor an hourly rate for guidance?

TIA!

 

[usctrojancpa]

Did a search in this subforum but, to my surprise, I only got 1 hit on REO.  I'm looking to put an offer in on a REO that's owned by Chase (nobody get excited, it's pretty far from Irvine ).  The wife and I saw the place today.  It needs work but the bones are good. 

More info:
Bank bought it back for just over $800k in October
Listing agent says it has been available for a few months, but popped up on Redfin only this month
Listing agent says there is 1 other offer on the place
Curiously, the previous owners trashed the place, but seemingly without very much resolve
Some things are missing...faucets, disposal (YUCK!), trash compactor, kitchen drawers, etc.
There are electrical issues.  Some outlets don't work and it looks like some wires have been ripped out of conduits in spite. 
I'm mostly concerned about verifying plumbing drain lines, making sure they're not maliciously clogged.  Can't do that with the water turned off.  I think this is low risk though, since the rest of the house is mostly intact.

Any tips/advice from those who have been down this path?  Do my odds increase by having the selling agent write the offer?  (I assume so, if only slightly).  What's the likely incentive offered to the agents by the bank?  How about the loan--am I better off going through Chase?  I see some very attractive rates on amerisave.com, and I know people who have used them with success.  Given that the property has already gone through foreclosure and that the bank owns it, do I need to worry about liens, title issue and the like?  How do I CMA on a REO?  Should I look to hire a RE attorney or pay a realtor an hourly rate for guidance?

TIA!

Shoot me a PM with the property address and I'll fill you in on the details and email you comps free of charge, no sense of paying anyone to do so.  I would say your chances of getting a property if u go with a listing are better for standard sales and/or short sales (mostly illegally, of course). 

 

[irvinerealtor]

Did a search in this subforum but, to my surprise, I only got 1 hit on REO.  I'm looking to put an offer in on a REO that's owned by Chase (nobody get excited, it's pretty far from Irvine ).  The wife and I saw the place today.  It needs work but the bones are good. 

More info:
Bank bought it back for just over $800k in October
Listing agent says it has been available for a few months, but popped up on Redfin only this month
Listing agent says there is 1 other offer on the place
Curiously, the previous owners trashed the place, but seemingly without very much resolve
Some things are missing...faucets, disposal (YUCK!), trash compactor, kitchen drawers, etc.
There are electrical issues.  Some outlets don't work and it looks like some wires have been ripped out of conduits in spite. 
I'm mostly concerned about verifying plumbing drain lines, making sure they're not maliciously clogged.  Can't do that with the water turned off.  I think this is low risk though, since the rest of the house is mostly intact.

Any tips/advice from those who have been down this path?  Do my odds increase by having the selling agent write the offer?  (I assume so, if only slightly). It depends, but yes you might get an inside advantage working with the listing agent as you mentioned. Do your homework and make sure it is someone you can trust. What's the likely incentive offered to the agents by the bank? Banks are typically offering 2.5-3% on REOs in this area, but it can vary.  You can ask your agent, who should be able to tell you. I would recommend that you focus more on the amount you are willing to pay for the home based on comparable sales and the amount of work you'll have to put into it to bring it up to par with them (plus a risk factor for the unknowns in purchasing a home without any seller disclosures) rather than incentives. Some shoppers miss that they are still overpaying if they are buying a product at a 25% markup and getting a 20% rebate. I don't assume that you'd be in that class, but I'm just saying... How about the loan--am I better off going through Chase?  There is no advantage to go through the same lender as the one that bought it back (Chase, in this case). The lending arm and the asset management arms of the bank are very separate and work independently of each other. I see some very attractive rates on amerisave.com, and I know people who have used them with success.  Given that the property has already gone through foreclosure and that the bank owns it, do I need to worry about liens, title issue and the like? Title should be clear and you will be getting the property as clear as possible if it went through trustee's sale. I would still recommend getting title insurance (usual and customary) to protect against any unrecorded cliams or boundary disputes. How do I CMA on a REO?  Should I look to hire a RE attorney or pay a realtor an hourly rate for guidance?

TIA!