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Bibb County, Alabama Homes For Sale. Find a Wholesale Bank-Owned REO in Bibb County, Alabama, AL:
Featured Topic: REOIt is common for a few veteran and experienced agents to control a majority of REO listings in an area. Once you make an offer to purchase a REO, banks generally present a counter-offer that may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible and you should definitely plan to counter the counter-offer. Conventional and FHA programs for REOs change regularly and real estate investors must stay abreast of the current loan programs. Many investors choose to use property managements and home warranties on their REO rental homes to minimize their time commitment. The majority of recent closed sales in Southern California are REO wholesale purchases. When offering on long term cash flow REO's, it is important that investors consider the long term viability of the neighborhood as it relates to local economy, employment and desireability It's not unusual for some REO homes in Southern California to receive 15 or 20 offers. Sometimes the bank will throw out all but two offers and then ask the selected buyers to resubmit what is called "Highest and Final" offer. REO vs Short Sale. The bank will list its REO property with a real estate agent who is much more likely to understand market value than a banks loss mitigation department in a short sale. A novice agent who is eager to succeed can be trained by a savvy investor to work in the REO market. Many REO investors seeking cash flow buy and fix a property based on overly optimistic market rent and incur long holding times before reducing the rent low enough to attract a qualified tenant. If Fannie Mae knows of any hazards on REO properties they own or market, they disclose this information through their real estate listing agents. However, they may not have been informed by the previous owner of all hazards. They encourage you to have the property inspected by a professional before you buy. Some REO listing agents are so busy that they hire assistants to field calls. Many do not give out their private cell phone number, which can make communication difficult. Many prefer to use email. If you cannot close an REO by the predetermined closing date, the bank may charge you a penalty for each day you pass that date. Fannie Mae and Freddie Mac have announced that they will implement a revised Home Valuation Code of Conduct effective May 1, 2009. This will have an effect on REO purchases made with loans. As rigid as REO properties or HUD homes may seem, the REO process is as much as part of foreclosures as the preforeclosure side of the business. The REO warranty Home Protect will cover electrical, plumbing, air conditioning and heating systems, as well as ductwork and many major appliances. Freddie Mac will pay for the first two years of the warranty after which buyers will have an option to continue the warranty on their own. In some communities code enforcement is looking to thin the herd of run down section 8 rentals by imposing heavy fines on their landlord owners. This is something to consider when looking into buying an REO homes as rentals. REO tip..although it may seem basic, be sure your subject property has a cooling an heating system. These can get removed at times and if overlooked could cost you thousands. Look for a furnace in the garage or in a closet in the house and a AC or swamp unit on the roof or on the property grounds close to the house. A common misconception is that foreclosures and REOs are the same. Although they are similar they are in fact different with the REO being the direct result of a foreclosure option sale. An REO is a property that has been foreclosed on and has reverted back to the ownership of the bank or lender. To avoid paying more than you intended, carefully research the area and home prices, as well as possible repair costs to find out if a REO home is right for you. |
