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Catahoula County, Louisiana Homes For Sale. Find a Wholesale Bank-Owned REO in Catahoula County, Louisiana, LA:
Featured Topic: REOWhen a bank takes back a home in foreclosure, it becomes an REO and is assigned to a local agent. 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. Before submitting an offer on an REO it is prudent to for the investor to be pre qualified and clear about their financing. With the currently low interest rates this is an optimum time to finance REO's for long term hold and cash flow. REO listing agents are often skeptical of an investor that has taken a weekend seminar and makes uneducated offers. Many REO investors are sitting on their hands waiting to see how government legislation will effect REO inventory in the coming months before they make any offers. Investor sshould exercise caution and avoid overestimating the value of an REO property. REO VS SHORT SALE. A investor who has a short sale agreement with home owner has no competition but must convince the bank of the homes value. An REO investor must compete with other buyers who may have different perceptions of the properties worth. A novice agent who is eager to succeed can be trained by a savvy investor to work in the REO market. 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. Usually, when you buy a home, you deal with a seller who lives in the home. Fannie Mae has acquired their properties through foreclosure, deed in lieu of foreclosure, or forfeiture. Fannie Mae wants to be sure that prospective REO buyers will be able to complete the sales transaction, including obtaining financing when needed. Pre qualification allows you to see how much house you can afford and the mortgage amount you may be able to qualify for before you make an offer on a home. It also helps you focus on homes in an affordable price range. REO listing agents are typically top producing agents because of the volume of business they conduct. If the bank REO does not appraise for the purchase price and the buyer is obtaining a loan that requires a 20% down payment or less, the buyer's lender will not fund unless the buyer coughs up more cash or the REO lender discounts the price. Cash buyers don't make offers contingent on an appraisal. REO for stands for real estate owned and REO homes are houses which have been subject to foreclosure, but failed to sell at a foreclosure auction. Many REO investors are doing their work by desktop, that is, on the computer and never really get out into the field. This is a sure way to make mistakes that will hurt later. Being a slumlord can be costly in a market where local municipalities are looking to impose maximum fines on landlords to generate income. This should be considered when making an REO purchase for hold and rent. Many REO investors do not realize the large number of homes that have gone back to banks but remain unlisted will eventually hit the market and have an impact on price. Short Sale versus REO: Big difference! If you make an offer on a home that is potentially a short sale, you will work with the seller and the bank, with the bank (or banks) being ultimately the decision maker on your deal. 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. |
