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Lassen County, California Homes For Sale. Find a Wholesale Bank-Owned REO in Lassen County, California, CA:Featured Topic: REOLenders are selling off their Southern California foreclosures at deeply discounted prices making this a profitable time for real estate investors. In an REO, the bank now owns the property and the mortgage loan no longer exists. An REO can be financed through a number of methods including cash, hard money, conventional and FHA. The purchase and hold of an REO rental property in Southern California real estate market can create some great tax benefits for the investor. REO agents must follow up diligently on offers made in their buyers behalf as many properties have a stack of offers submitted. Many REO investors rely on the opinions of inexperienced buyers agents to formulate their offers. These agents are often desperate to make a sale and do not understand market value or cash flow analysis. When buying REOs from a lender the investor must submit their offers on standard realtor forms. The banks do not like to see custom investor looking contracts. According to the National Association of Realtors, all but one state association's May 2009 membership totals trailed membership totals for May 2008, with 28 state associations experiencing a double-digit percentage drop in membership -- that trend has not held for all local and state Realtor associations, though. Home prices are at their most affordable in many years, which has opened up home ownership to many who had been locked out during the housing boom. And now, the federal government and many states are launching plans to hook up buyers of REO homes with very attractive terms. Many investors make the mistake of guesstimating market rents when trying to determine monthly cashflow on an REO purchase. Fannie Mae's HomePath database includes only properties that are owned by Fannie Mae 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. Buyer's agent have a fiduciary responsibility to protect your interests in an REO purchase. Buyers with all cash are REO lenders' favorite purchasers. A list-price all-cash offer will beat out a conventional offer, even if the conventional offer is above list price. If the listing's conditions state "cash buyers only," it is unlikely the bank will consider an offer from any buyer who is relying on financing. 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. The large number of investors buying and renting REOs in some areas will certainly cause a sag in market rents. This should be considered when buying an REO to hold. REO tip.....Be sure to have a clear picture of your hold time and what the actual hold cost is. Be sure to include market decline. Real estate brokers in turn with the REO manager within the bank to negotiate through an offer. Do a Google search for 'Real Estate Owned' or 'REO'; this will give you a list of websites where you can find bank owned properties. These are the terms that lenders use to describe properties that they repossessed though foreclosure and they are more than egger to get rid of them. Also it's a good idea to scan through your local classifieds for ads that contain one of the following: 'motivated sellers', 'handyman special', 'needs TLC'. |
