Frequently Asked Questions
Many investors who are experienced in real estate investing may be unfamiliar with the process of acquiring REO portfolios. We strive to simplify the acquisition process, by offering straight forward information that is easy to understand.
Q: What does Bulk REO Portfolio mean?
A: When lenders foreclose on real estate, they are placed on sale in a foreclosure auction. If there are no bidders, the property reverts back to the bank. Now the bank has ownership, therefore the term Bank-Owned/ (REO) Real Estate Owned. Financial institutions will bundle these properties into packages which are called Bulk REO Portfolios.
Q: Do the properties have clear title?
A: These properties are foreclosed by the banks and have clear and sellable titles.
Encumbrances such as unpaid water bills and county taxes may have accumulated since the
foreclosure sale and the time of the purchase. Title insurance is highly recommended.
Q: Is a mortgage loan acceptable as financing?
A: No, mortgage financing is not permitted.
Q: Can I review the list of properties so I can make an informed decision?
A: Yes. A general summary of the portfolio can be provided once we receive a Purchase Order Request/LOI and POF from the buyer. We can release the tape for your consideration.
Q: Can I customize a portfolio order?
A: Yes, but not all of our sources allow customization. Some portfolios must be purchased exactly as it is packaged by the seller. We can offer our clients customized portfolios because of our direct relationship with certain banks. A Purchase Order Request/ "LOI" and Proof of Funds (POF) are required by the bank to make a customized order.
To read more about customized portfolios click here.
Q: What slows down processing an order?
A: Inaccurate and Incomplete information, unreasonable requests, unsigned documents, inaccurate dates on forms, inability to verify funds in a timely manner and busy and slow compilers. Please review all forms are complete and current before submission.
Q: Do you support buyers interested in selling part of their portfolio, since properties are all over the US?
A: If you do not already have a strategy in place to dispose of the properties you purchased,
we can assist you in the sale of your inventory.
Q: Are there closing costs involved?
A: No, all closing costs and title fees are included in the purchase price.
Q: Who does the valuations for the properties?
A: We use several nationally recognized valuators. You can perform your own valuations online at web sites like Cyberhomes.com, Zillow.com and Trulia.com.
Q: What is the next step after I pay for the portfolio?
A: When the financial institution is informed that your funds were wired successfully, they will draft the required documents to transfer all Quilt Claim and/or Special Warranty Deeds to you. The deeds are then recorded.
Q: When will I receive the property deeds?
A: These deeds can take from a few weeks to several months due to the banks paper trails, county clerks and title companies. The buyer will receive affidavits of sales within days of the purchase directly from the financial institutions.
Q: How do you acquire the Portfolios?
A: We have established relationships with banks/asset manager and receive the majority of our portfolios from these sources. We use a variety of other sources, including private sellers and various compilers.
Q: Are you receptive to working with brokers and/or broker chains?
A: We do not work with broker chains. Our preference is to deal directly with real buyers who are the decision makers. If you are a buyer rep or buyer mandate, and have authority to purchase bulk portfolios on behalf of the direct buyer, we will determine if a working relationship can be established. We review this on a case by case basis.
Q: Is there a fee for your service?
A: A standard fee is added to the sales price. The fee is based on the size of portfolio which includes all sales commissions payable to all parties involved in processing the transaction.
We appreciate working with reputable clients who understand the REAL meaning of WIN-WIN situations. We provide a valuable service to you for an honest and fair fee.
REO DIRECT SOURCE
"Buy Direct....from the Source"