Even though it seems like there are a million of them out there, it is not uncommon for there to be multiple offers on one REO or bank owned property.  In this situation, it is your responsibility to write an offer that makes the bank’s asset manager, the bank employee who handles real estate owned properties, happy and creates the least amount of work for the bank.  If you pull this off, you will increase your chances of beating out competing offers. 

Start out by showing them the money for the REO of your dreams; or at least the earnest deposit money.  When you submit your offer, make sure your deposit is at least 20% or more.  This is a requirement, but it definitely gets your application to the top of the pile.  It doesn’t even matter if your offer is the highest.  What matters is if you have the cash and finances to start helping the lender recoup their losses. 

Going right along with the money theme is your preapproval letter from the bank that owns the property.  Even if they aren’t requiring that you be pre-approved with them, do it anyway.  This demonstrates that you meet the bank’s financing guidelines and are able to get financing.  An added bonus is that in some cases you will be able to negotiate terms and rates when you stay in house for REO financing. 

Second factor is time.  Yep, it all comes down to time and money.  Your offer needs to include quick action from you on inspections, deposits and documentation.  The bank will recognize that you mean business if you fulfill your obligations quickly and accurately.  Respond to bank’s requests quickly.  A slow reaction could land your file back on the bottom of the pile for weeks.  Hire your own home inspector, but let the bank use all their own people for everything else.  This makes the asset managers job easier which in turn floats your offer closer to the top of the pile.

Finally, and this is all cosmetics and a little brown nosing, but it never hurts.  Make sure you sign all of your documents in dark ink and that your offer is complete and includes every document required for a REO offer.  Most documents are handled digitally now and a signature that doesn’t scan well is another trip to the bottom of the pile while the asset manager awaits a valid copy.  The same is true of missing documents or incomplete offers.  Make sure it is all there and don’t lose precious time by sending incomplete packets. 

And for brown nosing points, some say these don’t work at all, but we say it can’t hurt to try.  Show your empathy for the asset manager who handles somewhere in the ballpark of 400 plus offers a day.  Be thorough.  Be accurate.  Be diligent.  And be there when they need more from you.  But most of all, don’t bug them, let them come to you.