Creative Realty  and Financing, LLC
Less Stress. Less Worries.

Donna Allison
Acquisition Manager

FAQ

Q. What does REO mean?

A: Real Estate Owned, it is the term that banks use to identify their foreclosure properties. These properties are now called non – performing assets (bank is not making money on them).

Q. What is a BPO?

A. BPO is short for (Broker Price Opinion). Some REO packages from banks will have BPO's . These values come from Comps and are used to justify the LTV.

Q: How do I know if it is a good price for the homes?

A: Do you own homework, the bank might give you their (BPO) broker price opinion, but you must understand that is just an opinion of an agent trying to get a listing, you must do your own valuations. Since the market is changing fast today, a valuation review by the buyer is recommended.

Q: Can you show me the list of properties so I can decide?

A: Yes. With an LOI and SPOF, we will use the LOI to compile the tape and then release the tape to the buyer for consideration.

Q: Can I choose which city/county/state the properties come from?

A: Yes. The buyer has to specify this on the LOI.

Q: You said the minimum portfolio is $1 million. Will the bank consider less?

A: Banks are giving preferences to customers with larger purchasing powers. We will strive to meet as much of our investors' needs as possible but, in order for the bank to take your offer seriously, you should be prepared to make at least a $1 million commitment. The $1 million minimum is on the purchase not the quoted portfolio size.

Q: What type of payment will the bank take? Can I finance these deals?

A: You are expected to have either cash or line of credit to make these offers. Given the nature of these transactions and the proof of fund requirement, it makes assessment of escrow difficult. Cash buyers are given priority from the banks.

Q: Do you have commercial or multi-unit properties?

A: Yes. Residential, commercial,multi-family,apartments, office building, warehouses, hotels, etc.

Q: Do these properties have clear title?

A: Some bank properties are warranty deeds and others are quick claim deeds. Title insurance is still recommended.

Q: Are these properties listed with a real estate agent?

A: No. These properties are not currently on the MLS. They are packaged in bulk deals before they hit brokers or MLS for markup.

Q: Are these properties occupied?

A: These properties are generally vacant.

Q: How many broker chains are involved in these transactions?

A: Depending on the transactions it could be one or two. 

Q: What If I am not direct there is 4 other people involved?

A: If an intermediary or a broker fail to be direct to their buyer, they WILL recieve a referral fee.

Q: What Prices or LTV'S are available?

A: Prices and LTV's are based on the bank/sellers motivation as well as buyer demand. For example you will pay higher prices for Arizona, California, Nevada because they are the most requested states, so the inventory is low and priced high.

Q: What slows down order processing?

A: Incomplete information, old dates on forms, unreasonable LTV requests, unsigned documents or inability to verify funds in a timely manner. Please ensure all forms are complete and current.

Q: How do you pre-qualify buyers?

A: Our goal is to conduct business in the most ethical and efficient manner and we expect the same from our clients. More than 70% of our bulk REO request are rejected because the "Buyers" have no real money for purchase or the buyers have unrealistic expectations. The most common unrealistic expectation is the buyer's recommended LTV.

All requests must follow a lender approved process and must be reviewed several times to ensure all your documents are complete. Your popularity or wealth status does not matter, there are no exceptions to the process. We won't jeopardize our lender relationships for any reason. We are in the business for the long term and not for one deal. This means we strive to provide the best products and service to our banks and clients to ensure your future referrals.

Our team works at the highest level of integrity and confidentiality.