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Dearborn County, Indiana Homes For Sale. Find a Wholesale Bank-Owned REO in Dearborn County, Indiana, IN:
Featured Topic: REOIf you establish a relationship with an REO listing agent who controls inventory you must be ready to close escrow quickly to establish yourself with that agent. 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. REO, or Real Estate Owned, is property that failed to sale at a foreclosure auction and is now owned by a bank. The current REO inventory holds many opportunities to create a monthly cash flow on Southern California rental homes. Currently, many wholesale REO's in Southern California are being tied up under contract within a few days of being listed. A good REO purchase must be analyzed buy either current market value or long term cash flow ability. Low list price alone does not mean a great deal. Many novice investors make bad purchases by under estimating the repair costs on REO properties. Many homeowners are very angered by the foreclosure process and cause physical damage to the REO property prior to leaving. Depending on how long an REO has been vacant it can need varying levels of repair from minor cosmetics to serious structural issues. It is important to have the help of experienced professionals when determining market rents for purpose of cash flow analysis. Fannie Mae uses a state-specific real estate purchase contract and a real estate purchase addendum for their REO properties. If there is anything in the document you don't understand or aren't comfortable with, you may want to contact a real estate attorney, the real estate sales professional who has listed the property, or any real estate professional of your choice to review these documents with you. REO buyers should be aware of the following FHA loan qualification guideline: Credit report should typically have less than two thirty day lates in last two years with a minimum credit score of 580 or higher or no credit score at all. If the bank won't budge and you receive an offer rejection, wait another 7 to 30 days and then resubmit your original offer, with the original date crossed off and your new date inserted. REO properties have properly changed hands. All liens against the property have been addressed. Back taxes have been paid. And the title is clear. In some cases, the bank may have done necessary repairs already. If you need a loan get your loan application not only pre-approval or pre-qualified but underwritten also. The competition and short time on the market before and REO goes pending has many REO buyers feeling discouraged. But many of these escrows will not close and the REO house will be back on the market. Many municipalities are fighting the subprime blight in their communities by levying heavy code enforcement fines at REO buyers. REO tip...When comparing recent sales to your subject property, be sure to make adjustments for differences in square footage. 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. The REO option offers many more benefits and less stress than the foreclosure auction. When a bank takes back a property they then have the property listed as a salable asset on their books. |
