“Pre-REO”:
This is a phrase and a market that we invented! It was born through necessity.
Any lender will always want the next dollar in a deal and who could blame them? They are going to take a loss anyway...why must it be for more than is absolutely necessary? Whole departments are formed with this very idea, mitigating the loss. With that in mind—we basically offer the lender more than any other method of asset recovery….especially foreclosure!
We produced higher offers, which is what they want and suddenly our acceptance rate is skyrocketing, debt is being liquidated and people are happy! The lenders, the homeowners (see benefits of a Short Sale), and the new buyers (they get a great deal!).
A “Pre-REO” may be the only option before a foreclosure ensues and financial ruin results for the homeowner AND THE LENDER LOOSES MONEY! Home Sweet Home, LLC is all about options – we can market the home through our licensed Realtor (with the homeowner’s complete consent).
There are 3 conditions to this offering: (as with ANY Short Sale)
1. Lender orders A BPO, IMA or appraisal and can expect, as we have proven for other lenders, up to 90% of the appraised amount in 90 days or less – this may be the best deal for everyone! We must have lender approval to begin. We evaluate every deal on the likelihood of closure, because there are many expenses—which are upfront costs to us! We charge a fee for this service…only if we are successful.
2. We have an agreement with the homeowner, who is voluntarily allowing immediate liquidation of the property via either a Short Sale or Pre-REO, which will require a standard Lien Release from the lender(s) when complete. If all else fails we will provide a DIL, instead of foreclosure to prevent humiliation and protect the confidentiality of our client.
3. When the transaction is completed by either procuring a retail buyer OR the direct Short Sale to Home Sweet Home, LLC, a Texas corporation, the homeowner will have their credit bureau listed as “PAID IN FULL - LESS THAN AGREED” or “PAID IN FULL - SETTLED”.
ALMOST NO ATTORNEY FEES and just standard closing costs!!!
A “Pre-REO” offers the lender a higher return than any investor, such as Home Sweet Home, LLC is able to pay because we have buying AND selling expenses (not to mention carrying costs, repairs, etc.) same as the lender would have or WILL have AFTER the foreclosure – PLUS ATTORNEY FEES!!
Everyone wins with a “Pre-REO!”