Got Foreclosure! - Blog

Banks don’t want to own real estate.

It’s an old adage, but if you’ve been trying to buy a home at a discount from a bank you’ve probably started to doubt that that’s true.

Asset managers have been stubborn and misinformed. Real estate agents came up with “Broker Price Opinions” (BPO) that were way out there. Together, they were working on increasing inventory, rather than getting non-performing assets off lenders’ books.

But change is visible in multiple avenues of lenders’ distribution channels. California real estate guru Bruce Norris recently reported a sea change in lenders’ startegies at auctions:

“We were the winning bidder at the Hudson and Marshall auction on seven houses. The auction company had countered our offer on five and rejected the other two. We refused their counter offer in each case and stuck with our original winning bid.

On one particular property in Riverside, Hudson and Marshall countered our winning bid of $112,000 at $139,500. We held firm at $112,000. Hudson and Marshall got back to us today and accepted our original winning bid! We also know this has happened to a few other investors that we spoke with today.

This makes me very happy, not just because of the profitable deal but it signals the capitulation of the lenders. The auction produced multiple 60% deals. I think that trend will continue. The fact that the lenders are learning they better take the final bid is very exciting. FINALLY!!!

I wanted to let you know this information in case you are attending the auction this weekend. From what we’ve heard of the many days of the auction so far, the audiences have shrunk and the majority of the bids are lower then they have been in the past.

If you win, expect to get countered. If you get a counter, don’t take the bait!” - Bruce Norris (http://TheNorrisGroup.com)

And in our own dealings with bank owned properties we have seen much more reasonable offers getting accepted. Great deals are available now, for rehabbers, landlords, and move-in buyers as well.

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