Writing REO offers | Guide to getting REO property offers accepted

How to get your offer accepted on REO lender owned property. No two REO lender owned transactions are the same. Key questions to ask prior to writing an offer on bank owned properties.

Orange County Foreclosures: Find Bank Owned Homes, REOs & Short Sale Properties in the Following Areas:

Jump to Guide to REO property offers

Guide to Getting your REO property offer accepted

So you want to buy an REO Lender Owned property. First, there are no rules! Every REO seller has their own set of policy and procedures which can vary greatly. Banks and lenders are not in the business to own real estate, and they have no emotion in these transactions. They want to divest themselves for the property as quickly as possible and with the least loss as possible. This means if the numbers work and they are satisfied that you are qualified as a buyer and you can perform and close, you will usually have a deal. Be aware that most REO sellers have their own set of disclosures that you will be required to sign, and you will be buying the property "as-is".

Preparing to Write an REO Offer - Questions to Ask

No two REO lender owned transactions are the same. You need to know as much about the property as you can. You should keep in mind that REO sellers are usually inflexible with regard to terms of the contract. Here are some questions you should ask your real estate agent to find out prior to writing an offer:

  1. How long has the property been on the market?
  2. Are there any pending offers? Have there been any offers?
  3. How does the seller handle muliple offers?
  4. Will the seller accept a back-up offer?
  5. Does the seller have their own contract?
  6. Will the required addendums be provided prior to submission of an offer?
  7. What is required to be submitted with an offer? A pre-qualification letter, proof of funds, etc
  8. What will response time be for an offer?
  9. Who selects the services? Who are they? (i.e.; escrow company and title)
  10. What work, if any, has been done on the property?
  11. Has a termite inspection been done and work completed? Will they do termite work?
  12. Will the seller negotiate any repairs requested? (Usually they will not as the home is sold "as-is".)
  13. Who pays for any lender required work as a result of an appraisal and/or home inspection?
  14. Will the seller offer a home warranty plan?

If you know the expectations of the seller prior to writing an offer and make it easy for them, you have the best chance to have your offer accepted.

Price and Terms

REO sellers generally do not test the market. Most REO properties are priced to sell with regard to location and condition. Do not expect to get significant price reductions. Usually, "low ball" offers are promptly rejected.

Show Your Strength as a Buyer

  • Put down a strong initial deposit of at least 2% or more.
  • Present a strong prequalification letter from a direct lender.  The REO seller may require you to prequalify with their lender, or even get pre-approved.
  • Supply proof of funds required to close the transaction.

Write a Clean - Non Contingent Offer

REO Sold property
  • Contingent offers will not be accepted. (Remember, they do not want to own real estate!)
  • Lease/Option offers will not be accepted. (They do not want to be property managers.) 
  • Ask for a quick close, 30-days or less. (They want to get the property off their books.)
  • Keep time frames for inspections, contingency removal, etc to 17-days or less. Many lenders will require 10-days or less. (They want to know that you are serious about buying the home.)
  • Do not expect for the lender to pay for a portion of your closing costs unless it is a very strong offer.

Bottom line?  The "cleaner" and "stronger" the offer, the better chance of acceptance.
If you would like to work with professionals experienced in writing REO offers that get accepted, please contact us below.  Or, if you have an immediate need or question and you would like to speak with us now, contact us direct at 949.481.3739.

Contact The Hartanov Team

* Indicates a Required Field.

Please provide a valid email address.

My Account

Log in, to view your saved searches and add to your favorite listings.

Sign Up Here For Your FREE Account

... So You Can:

  • View detailed property information
  • Print detailed property flyers
  • Save your searches & favorite homes
  • Inquire about a private showing
  • Map individual property locations
  • Share your favorite homes with friends
Return to Top Email this Page Print This Page