The current status of an REO property owned by Chase Bank can be found through their online website or by calling their REO department. The toll-free number for Chase’s REO asset management division is 1-877-584-3290. If you are looking to make an offer, there is no need to contact them directly. Almost all the properties in their REO inventory are listed through approved local listing agents.
In 2010 and 2011, more than 6 million homes has gone into foreclosure. As most of these homes had little or no equity in rapidly declining real estate markets, most of them failed to attract any interest or bids at foreclosure auctions. When this transpires, the foreclosing lender has no choice but to repossess the property and make attempts to sell it on their own to recover the losses stemming from the homeowner’s default. Major national banks such as Chase have a huge inventory of REO homes that they are working hard to reduce through their internal asset management divisions and through external companies that specialize in this specific need.
Before Submitting an Offer
To make an offer for purchase, first check to see if the listing can be found on their REO listing site. If you click through to the expanded profile of the property, you should be able to find information about the REO agent handling the sale of the property on behalf of JP Morgan Chase. Most REO properties are sold in an “Dutch Option” format. The REO asset manager initially sets the price at a level that they ideally want from a sale. If that sales price doesn’t elicit much buyer interest, the property price is then reviewed every 30 days and, most often, lowered. Investors looking to buy a Chase Bank owned home may not be able to get a great deal in the initial 30 days from the date of listing. As the time progresses, the bank’s reo department will be more willing to consider negotiations for a sale at a substantially lowered amount than the initial listing price.
In hot real estate markets where the demand is higher, the above mentioned scenario may never materialize. In such cases, an REO investor is better off making their best offer right upfront. The best way to assess if the value set by Chase REO department is reasonable is to consult an appraiser or a buyer’s agent and get the latest comparable property sales. If the listing price is more or less close to the other similar properties that sold in the immediate vicinity, proceed to make a formal offer to buy the Chase REO home of your choice.
If you want to locate real bargains among bank reo listings, the best way to go forward is to consider making bids on properties that have been sitting on the market for at least 60 – 90 days. Additionally, great deals can be availed by opting to buy properties that may be in need of repairs such as fixer/uppers. In rare cases, a REO asset manager may list the price at a much steeper discount to what similar properties may be selling for; when you see such a mis-priced REO property among Chase listings, pounce on it before others do so.