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5 Best Banks to Buy From

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More than 644,000 bank-owned properties nationwide give buyers ample inventory to choose from. But not all bank-owned purchases are created equal; some banks sell more quickly and offer bigger discounts. But which are the best banks to buy from? What lenders offer the best deals? Which servicers sell their REOs fastest?

To help buyers sort through this vast bank-owned REO maze, Foreclosure News Report has analyzed RealtyTrac foreclosure sales data from the fourth quarter of 2011, broken down by lender, to provide a list of the best banks to buy a foreclosure from. To come up with this list we started with lenders that sold more than 1,500 REOs during the quarter and then used a combined ranking of the lenders with the highest percentage savings and the shortest times to sell REO properties to come up with the final list.

Find bank-owned bargains in your neighborhood

1: Ally Financial (Formerly GMAC)
 Avg. REO Sales Price: $60,254
 Avg. Percent Savings: 60%
 Avg. Time to Sell: 104 days

2: Wells Fargo
 Avg. REO Sales Price: $83,530
 Avg. Percent Savings: 43 %
 Avg. Time to Sell: 157 days

3: Citigroup
 Avg. REO Sales Price: $68,406
 Avg. Percent Savings: 49%
 Avg. Time to Sell: 167 days

4: U.S. Government
 Avg. REO Sales Price: $93,941
 Avg. Percent Saving: 30%
 Avg. Time to Sell: 187 days

5. JPMorgan Chase (Tie)
 Avg. REO Sales Price: $98,864
 Avg. Percent Savings: 41%
 Avg. Time to Sell: 203 days

5. Bank of America (Tie)
 Avg. Sales Price: $120,801
 Avg. Percent Savings: 27%
 Avg. Time to Sell: 187 days

Video: Search REOs by Lender

Relationships matter
“To me, it really doesn’t matter which lender I’m dealing with,” said California REO investor Tony Alvarez, who said he buys one bank-owned REO every week and owns 51 REO rentals. “I’m more interested in the relationships I develop with the REO listing brokers. That’s what important to me. Relationships matter to me.”

Alvarez, who has been buying REOs in the Antelope Valley since 1981, targets pending REO listings because he knows that about 40 percent of those deals fall out of escrow. He writes back-up offers on pending REO sales and waits for them the deals to unravel. When they do, he’s there to pick up the deal.

“When an REO falls out of escrow three times, the rule book goes out the window,” said Alvarez, author of Breaking into the REO Business. “Once you get to the third time a deal falls apart, something magical happens. Then, everybody’s flexible.  The asset manager, the negotiator, the listing agent and the bank suddenly want to make a deal happen.”

REOs rising
Frank DeNovi, an REO broker in Chicago, Ill., said bank-owned inventory is rising in suburban Chicago, and he’s noticed a sizable increase in higher-end REOs in suburban Chicago in the $800,000 and above range.

“We’re seeing an uptick in REO units in the last 60 days,” said DeNovi, a 27-year REO veteran who works with Coldwell Banker in Chicago’s northwestern suburbs. “These new units should be hitting the market in 30 to 60 days. We’re also seeing an increase in higher-end REOs in the $400,000 to $800,000 range.”

Representing Fannie, Freddie and 22 other clients, DeNovi said he expects volume to increase 30 percent in 2012. He said the REO paperwork from lender to lender was very cumbersome, but he said the disposition of REOs was slowly moving online, streamlining the sales process.

“Fannie is in the process of automating their REO field service and putting everything online,” said DeNovi, whose seven-person team sold 300 REO properties last year. “We love to see more of that. The process is getting more sophisticated.”

This article was excerpted from the March 2012 issue of the Foreclosure News Report, an award-winning monthly newsletter published by RealtyTrac. Order a free trial issue today!


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Comments

Please check this video. http://joshlavik.blogspot.com/2012/04/nastiest-ugliest-foreclosure-home-in.html?utm_source=BP_recent Posted: May 23, 2012 by: Josh
Really helpful info! I think real estate seeker will find this search term very useful for them. [url=http://www.mybestbanks.com/]best banks[/url] Thanks and keep up the good job. Posted: May 19, 2012 by: Best banks
Thanks for your comment. Using the RealtyTrac advanced search you can search any county, city, or zip code nationwide for inventory owned by a specific lender. Just enter the lender name into the "Lender Name" field and then search. On the search results page you'll want to click on the "Bank-Owned" tab. Here's a how-to video for that: http://youtu.be/y1BRtJME2AE Posted: March 8, 2012 by: darenb
It would help if you listed the URL links where inventory is posted. Posted: March 8, 2012 by: nael

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