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Maricopa County, Arizona Homes For Sale. Find a Wholesale Bank-Owned REO in Maricopa County, Arizona, AZ:Featured Topic: REOWhen making an REO purchase, it is important to understand market value in your chosen area. If you are the successful bidder on a property at an auction, you receive the property in as is condition, which may include someone still living in the property or other liens against the property. Real estate owned or REO is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction. Many factors are often overlooked by investors when calculating positive cash flow on an REO rental property such as repairs, maintenance, taxes, insurance, municipal fees, vacancy and a host of other potential fees and costs. Agents who have REO listings that don't sell will often see the listing expire and have the listing assigned to another agent. Lenders for incoming home buyers are forcing appraisals downward based on the sales data created by REO home sales, which are often in poor condition and not reflective of market value. Sometimes banks will pay for repairs on REOs, but typically will not agree to do so at the offer stage. If there are problems found during a home inspection, renegotiate after your offer has been accepted. A short sale is a purchase made from the bank at less than the full owed amount. Many investors get discouraged with this process as it can take many months for the bank to accept or not get accepted at all. Investors wanting to buy and hold section 8 properties must improve the property to comply with section 8 inspection guidelines. 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. Home Path Renovation Mortgage Financing is special financing on Fannie Mae homes and is available from several lenders. If you are looking to purchase an REO and are unsure what your credit report is like, you may want to begin by getting a free credit report that you can view immediately online. The bank may ask for you to submit a loan application so it can prequalify you for an REO, however, you are not obligated to obtain your loan from that bank. Many are in fine neighborhoods and offer outstanding values. And while some REO homes do qualify as handyman specials, many are in very good condition. One more disadvantage of Bank Owned homes or REO Properties is you will not know about the past of the property, but this can be reduced by doing some research on property in public records. RealtyTrac released its mid-year 2009 U.S. Foreclosure Market Report Thursday, which shows a total of 1,905,723 foreclosure filings including default notices, auction sale notices, and bank repossessions were reported on 1,528,364 U.S. properties in the first six months of 2009. That figure represents a 9 percent increase from the previous six months and a nearly 15 percent increase from the first six months of 2008. Many REO experts are involved in wholesaling their REO homes. They will pass along a deal they found in as is condition to another buyer for a nominal fee. REO tip....take extra care to estimate repair costs on the lower priced inventory. There is usually a reason for the low list price and many times it is a costly or loan killing defect. An REO is the simplest way to purchase property. The REO option offers many more benefits and less stress than the foreclosure auction. When a bank takes back a property they then have the property listed as a salable asset on their books. |
