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San Luis Obispo County, California Homes For Sale. Find a Wholesale Bank-Owned REO in San Luis Obispo County, California, CA:Featured Topic: REOIt is common for a few veteran and experienced agents to control a majority of REO listings in an area. Before making an offer on a REO, have your agent contact the the listing agent and ask the following questions: (1) Are there any inspection reports, (2) What work has the bank agreed to, (3) Is there a special "as is" form, (4) How long does it take the bank to accept an offer, and (5) How does your agent deliver the offer? FNMA is offering special financing on their REO inventory properties. The benefits of Fannie Mae Home Path Special financing include low down payment and flexible mortgage terms. The last downturn in the real estate market created many millionaires who were able to buy and hold cash flow positive REO properties. REO listings are currently receiving multiple offers and being bid up above list price 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. A copy of a check for one thousand dollars is usually submitted as a deposit with most REO offers. The offer typically states that the check will be placed into escrow within 48 hours of acceptance. A property that is still in foreclosure does not yet belong to the bank and the homeowner must be engaged. An REO purchase does not involve the homeowner. REOs with swimming pools typically have empty or half empty pools that will require repair to the plaster, tile, electrical and pump equipment. This along with a smaller buyer group, increased liability in a hold situation and higher insurance will keep many investors from bidding on pool homes Some of the most successful buy and hold investors repair their properties to high standard and rent at sightly below market. This allows them to find and retain renters who have an interest in keeping and maintaining their houses for a long period of time. HomePathRenovation Mortgage Financing is special financing is available on only Fannie Mae homes you make your primary residence. You do not have to use Fannie Mae's selected title, settlement, or escrow companies on an REO purchase. You may designate the title, settlement, or escrow company of your choice, subject to the terms of the contract. 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. FHA requires satisfaction of appraisal conditions prior to closing. Yet, REO banks typically will not authorize repairs prior to closing. Then, toss into the mix that bank repo buyers rarely want to pay for repairs before they own the home. The REO offer process in many ways is less complicated, there is little to no emotion on the part of the seller the REO lender, and deals can be completed much more quickly. In their efforts to create a bidding frenzy, many REO agents will claim that they have 10, 15, 20 or more offers on a REO house when in reality their are only a few offers that the banks would consider. Don't be discouraged by this kind of talk and submit your educated offer. In a down market loaded with opportunity, investors should focus on having a successful first project not buying the cheapest house. A good first experience will lead to multiple purchases and ultimately wealth when the up cycle occurs. Many REO investors do not realize the large number of homes that have gone back to banks but remain unlisted will eventually hit the market and have an impact on price. Short Sale versus REO: Big difference! If you make an offer on a home that is potentially a short sale, you will work with the seller and the bank, with the bank (or banks) being ultimately the decision maker on your deal. Once the foreclosure has been initiated the bank or loan company legally has the right to sell the property regardless of whether the owners have moved out or not. The foreclosure auction is different than an REO property. |
