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West Des Moines Homes For Sale. Find a Wholesale Bank-Owned REO in West Des Moines, Iowa, IA:
Featured Topic: REOMost REO purchases will be AS IS only, therefore the investor must inspect the property ahead of time and be aware of needed repairs and possible defects. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. Investors that are pre qualiifed and work with a competent lender are in a better to position to have their REO offer accepted and close escrow in a timely fashion. With the current downturn and unemployment challenges many investors are looking to create and replace income with cash flow REO's. It is important that REO buyers have a realistic idea of what repairs will cost on the houses they offer on. It is important for investors to follow the sales statistics in the area they are buying in so they can make confident and competent REO offers. Lenders are flooded with foreclosures and aggressively slashing prices on REO foreclosed homes. It typically takes about 30 days for an REO to be prepared for sale by the REO listing agent. In some cases they must evict the homeowner through the court system. Some areas to pay attention to when inspecting an REO for water damage are around the bathrooms, water heater, solar equipment, water softening equipment, attic spaces and under the kitchen sink. It is important to understand the standard amenities of homes in an area before determining rehab costs on a cash flow rental home. 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. Hire a buyer's agent who has experience working with REOs. FHA buyers might back away from buying the bank REO if the appraisal calls for conditions. While it is true that FHA appraiser guidelines have relaxed since 2006, foreclosed homes that are older may require too many repairs. Appraisers will note missing bathroom toilets and sinks, peeling paint on pre1978 homes, inoperable or missing kitchen appliances such as a stove. REO properties have some disadvantages too like, not all of are in good condition in some cases you may need to call gas, water & electric companies to get them turned on & also you will have to pay for all repairs. The new REO warranty incentive is part of a HomeSteps' SmartBuy sales promotion, which began on July 17 and is scheduled to run through October 30, 2009. HomeSteps, the REO disposition and sales unit of Freddie Mac, markets a nationwide selection of Freddie Mac-owned homes. An REO hold buyer should be familiar with the local municipality and their code enforcement policies. Many cities are hurting for money and have taken aim and bank and investor owned REO properties to generate revenue. 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. We expect REO activity to spike in the coming months as foreclosure delays and moratoria implemented by various state laws come to an end |
