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Stanislaus County, California Homes For Sale. Find a Wholesale Bank-Owned REO in Stanislaus County, California, CA:
Featured Topic: REOPositive cashflow reo houses are abundantly available in the Southern California Real Estate market, in particular the Palmdale Lancaster area has great deals for investors. 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. REO, or Real Estate Owned, is property that failed to sale at a foreclosure auction and is now owned by a bank. Buying, renting and holding REO properties now will create a number of options for the investor in the years to come. REO listing agents are judged by the banks on their ability to find worthy buyers that can close escrow without hassles. A failed escrow is a negative mark on their record. 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. Lenders are flooded with foreclosures and aggressively slashing prices on REO foreclosed homes. When a home goes back to the lender in a foreclosure, it gets assigned to an agent who then will need time to clean up, secure and prepare the home for sale. Repeat vandalism may cause a bank to lower price on an REO listing. It also may be a caution to the investor about the neighborhood. Savvy investors take care to preselect good neigborhoods, location and configurations that would be desirable for family living when looking for REO cashflow opportunities. Fannie Mae may make some repairs to REO homes to increase their marketability however, the buyer should be aware that other repairs may be needed. REO buyers should be aware that FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA guidelines for loan qualification are the most flexible of all mortgage loans that require less than 5% down payment. Remember that these guidelines are subject to change at anytime and you should stay abreast of current loan programs. 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. An REO property has been foreclosed by the lending institution, and has reverted to their ownership. This is not how the bank wants foreclosures to end. In most cases, the market value of the home simply does not cover the loan balance, repair costs, and other fees associated with foreclosure and sale. Each lender has its own procedure for the sale of REO homes. So once you have identified a property, check out the procedure of the bank which is selling the REO property. Many REO buyers select an area that they like, drive the streets and collect agent and property details off of the signs. In this regard they are able to touch and feel an area in a way that can't be done over the computer. Many municipalities are fighting the subprime blight in their communities by levying heavy code enforcement fines at REO buyers. The current REO market in southern California has shown a recent drop in inventory and that has created a price increase. 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. 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'. |
