 |
 |
|
Shell Bluff Homes For Sale. Find a Wholesale Bank-Owned REO in Shell Bluff, Georgia, GA:
Featured Topic: REOREO stands for Real Estate Owned and refers to a property that has been returned to a bank or lender in a foreclose proceeding. Even though you agreed to buy an REO as is always give the bank another opportunity to make repairs or give you a credit after you have completed your inspections because sometimes the bank will re-negotiate to save the transaction instead of putting the property back on the market, but do not take it for granted. A three percent down payment is required for Fannie Mae loans and REOs can be funded by the buyers savings, a grant or loan from a non profit organization. This is the optimum time to learn about REO's and cash flow as there will be a large transfer of properties needed to liquidate the bank owned inventory. It is important that REO buyers have a realistic idea of what repairs will cost on the houses they offer on. When offering on long term cash flow REO's, it is important that investors consider the long term viability of the neighborhood as it relates to local economy, employment and desireability 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. Due to high opening bid prices most homes do not sell at the trustee sale and go back to the banks, becoming REOs. Many REOs are secured by an electronic SUPRA box and cannot be accessed by a number code. An investor must have interior access to a home to make a repair estimate. Many REO properties with low price tags contain surprises in repair costs that can wipe out profit margins.It is important to have a professional opinion of cost for these repairs to ensure a safe purchase. 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 of the following FHA loan qualification guideline: Bankruptcy's must be at least two years old, with perfect credit since discharge. Remember that these guidelines are subject to change at anytime and you should stay abreast of current loan programs. Bank REOs homes are rarely in turnkey condition. Many have been stripped or vandalized, and some are victims of deferred maintenance. 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. 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. When you make a REO purchase offer, the bank will almost certainly respond with an counter-offer. this is just to show their auditors that they had done everything possible to get the best price, so you should always negotiate REO's to get the best price If you get your REO bid accepted, move quickly to get your docs signed and counter signed as the bank will still entertain offers until you are in escrow. REO tip..if you are unclear if a street or neighborhood is rough, you call call the local sheriffs department and ask if they have a high volume of calls to the area. 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. |
