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Ford County, Kansas Homes For Sale. Find a Wholesale Bank-Owned REO in Ford County, Kansas, KS:
Featured Topic: REOThe prices on current REO inventory are well below building cost and make incredible buy and rent opportunities. Once you make an offer to purchase a REO, banks generally present a counter-offer that may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible and you should definitely plan to counter the counter-offer. In a REO situation, a bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount and, if there are no bidders that are interested, then the bank will legally repossess the property, and as soon as the bank repossess the property, it is listed on their books as REO (Real Estate Owned) and is categorized as an asset (non-performing). There are multiple sources of funding currently available to investors purchasing REO's in Southern California. Many novice investors make offers that get accepted by the bank but they rescind their offer when they realize that they did not do enough homework on the property and major repairs are needed. 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. In many cases, the list price of an REOhas little bearing on the value of the home. The market value carries the most weight. If you are up against competing offers, other buyers will offer more than list price. Many homeowners are very angered by the foreclosure process and cause physical damage to the REO property prior to leaving. 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. Even if an REO has fresh paint, brand new carpet, new appliances, perhaps even a new roof or siding, it doesn't mean everything in the house is new, or even works. Fannie Mae will not accept REO offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis. The bank does not want to sit on its inventory. Since it did not receive its minimum bid from an investor or home buyer during the foreclosure sale at the courthouse, the bank is likely to price that REO home for less, just to get rid of it. Fannie Mae and Freddie Mac have announced that they will implement a revised Home Valuation Code of Conduct effective May 1, 2009. This will have an effect on REO purchases made with loans. HUD does not warrant the condition of its REO properties, but will give you the information it has about the condition of the property you’re interested in. You can use this information in formulating your bid. While REO investors are underbidding on many foreclosure properties, Christopher Thornberg, a principal at Beacon Economics in Los Angeles, said that interest is coming from “vulture funds” with millions of dollars to spend on distress sales. Thornberg said Wall Street vulture funds are amassing war chests in preparation for a new cycle of opportunities in loans or bonds of struggling financial companies or homebuilders. It can be beneficial to track the listing history of and REO. Multiple failed escrows can be a great indicator that a bank is ready to give up the super wholesale deal to get the asset off its books. Many investors believe that the current drop in Southern California REOs mean that the market has bottomed. Buying a bank-owned or REO property may take an equal amount of time and angst, but the property will be vacant and easier to inspect. In fact, some banks will put a little money into prepping the home for a better sale for them: paint, handyman work, landscaping, etc. Homes are sold without guarantee because the bank has never lived in the home and is selling as-is. Other ways to buy foreclosures are to buy at a public auction or buying bank owned or REO properties. These properties are often priced for less than what is owed on them because the bank does not want to hang on to a bunch of properties. |
