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Dade County, Georgia Homes For Sale. Find a Wholesale Bank-Owned REO in Dade County, Georgia, GA:
Featured Topic: REOThe time required to purchase an REO is generally much shorter than a short sale as REO's will already have a list price that the bank has agreed to. In an REO situation, your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies and even once an offer is accepted, the bank may insert wording like subject to corporate approval with 5 days. An REO can be financed through a number of methods including cash, hard money, conventional and FHA. With the currently low interest rates this is an optimum time to finance REO's for long term hold and cash flow. Many investors are bidding above list, panicking thinking that the market is at bottom when in reality there are many more REO's to come in the next few years. 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 flipping REOs investors must be careful about reselling to people that can't close quickly. Sometimes an REO listing agent will offer cash for keys to entice the ex homeowner to leave the REO property. Many REO buyers agents are not comfortable working with investors. It is important to find an agent that is familiar with investor transactions. Local unemployment stats should be factored in when determining cash flow on an REO property. HomePath Mortgage Financing is available on Fannie Mae homes and is available to both owner occupiers and investors. REO buyers should be aware of the following FHA loan qualification guideline: Two Years of steady employment, preferably with same employer. Remember that these guidelines are subject to change at anytime and you should stay abreast of current loan programs. 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. The US Department of Housing and Urban Development's REO properties are a result of FHA paying a claim to a lending institution on a foreclosed property which was financed with FHA Insured Mortgage and the lender transferring ownership of the property to HUD. If you need a loan get your loan application not only pre-approval or pre-qualified but underwritten also. 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. 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..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. There are some downsides to REOs. While REOs are sometimes touted as real bargains, the lenders know very well what they're worth and will drive a hard bargain to ensure they are getting as much money as possible from the sale. |
