Qualifying Requirements to Buy a REO Property

by Veronica Cabrera

May, 13 2012

My well qualified client asked me to put an offer on an REO property. The listing agent's remarks asked for the lender's owner of that property,  pre-qualification letter to be presented with any offer. The problem was that the REO lender will not issue any pre-approval if they don't talk to the borrower directly to ask for his authorization to run his credit. I would assume that a written authorization should be sufficient, but not in this case. I contacted 4 or 5 different lenders of that bank and all of them said the said the same thing, that they are required to talk directly to the borrowers to run their credit.

My client agreed to it. When one of the lenders talked to him, the lender insisted that my client to get the loan with him. My client was very upset because that was not supposed to be the purpose of the call. .

At the end, (3 days later) one of the lenders gave us the letter, but the property already had 10 offers by then.. We found another REO property and here we go again.

Veronica Cabrera, Realtor

Realty ONE Group

Huntington Beach, Riverside, San Bernardino, CA

veronicasreohomes.com

veronicacabrerarealtor@gmail.com

(714) 809-6521

R.E. Lic. #0143140