 |
 |
|
Paradis Homes For Sale. Find a Wholesale Bank-Owned REO in Paradis, Louisiana, LA:
Featured Topic: REOLenders are selling off their Southern California foreclosures at deeply discounted prices making this a profitable time for real estate investors. Most banks will not provide financing on their REOs but it doesn’t hurt to ask - especially if the property has extensive damage and you are purchasing it as is. Conventional and FHA programs for REOs change regularly and real estate investors must stay abreast of the current loan programs. 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. Many investors are bidding above list, panicking thinking that the market is at bottom when in reality there are many more REO's to come in the next few years. Most economists agree that this in an unprecedented economic downturn and the REO market will create a huge transfer of wealth and assets. Most REO agents work for one or two banks. Some listing agents are exclusive listing agents for REOs, and they do not list any other type of property. Since REO agents deal in volume, they typically apply the same pricing principles to all their REO listings. A short sale is a purchase made from the bank at less than the full owed amount. Many investors get discouraged with this process as it can take many months for the bank to accept or not get accepted at all. Most REOs are secured by an agent lock box and will require an agent to access the interior. Local unemployment stats should be factored in when determining cash flow on an REO property. 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: 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. 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. 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. 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 REO warranty Home Protect will cover electrical, plumbing, air conditioning and heating systems, as well as ductwork and many major appliances. Freddie Mac will pay for the first two years of the warranty after which buyers will have an option to continue the warranty on their own. Many of the successful REO buyers are leveraging relationships with REO listing agents and buying inventory that is not on the MLS. REO tip....Take note of the condition of the top sold comps in your area and try to estimate your repairs to the market standard. Over repairing can eat away at profits and under repairing can take your property out of consideration for top buyers. Under the rules of foreclosure a bank or lender takes control of a property due to the inability of the borrower to make loan payments. Once the foreclosure has been initiated the bank or loan company legally has the right to sell the property regardless of whether the owners have moved out or not. REOs are properties that the lender has failed to sell at auction. At this point, since the home has gone back to the lender, the mortgage no longer exists. |
