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Comerica Homes For Sale. Find a Wholesale Bank-Owned REO in Comerica, Michigan, MI:
Featured Topic: REOReal estate investors are able to buy lender owned REO homes in Southern California for fifty cents on the dollar or better and rent them out for a positive cash flow. In an REO, the bank now owns the property and the mortgage loan no longer exists. Before submitting an offer on an REO it is prudent to for the investor to be pre qualified and clear about their financing. Many investors overestimate current and future market rents when analyzing a potential REO cash flow rental house. This is a highly critical step and should involve an expert resource on real estate market rent conditions. The majority of recent closed sales in Southern California are REO wholesale purchases. Many REO investors are currently buying bad deals by basing their offers solely on the fact that the house looks cheap. This creates bad experiences that stop them from continuing their investing careers. Many novice investors make bad purchases by under estimating the repair costs on REO properties. 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. Most REOs are secured by an agent lock box and will require an agent to access the interior. Budgeting for monthly maintenance issues such as gardening, is important in calculating cash flow on an REO as certain items must be maintained by the owner. Fannie Mae may make some repairs to REO homes to increase their marketability however, the buyer should be aware that other repairs may be needed. FHA would typically require that any outstanding collection accounts, judgments, charge offs be paid off in full before closing your loan but not necessarily before approving your loan on an REO. Buyers chasing after bank repos are sadly discovering that some REO lenders will not sell a bank repo to them, and they don't know why. The truth is banks can name the terms and conditions under which they will sell a bank-owned home. If buyers don't fit those qualifications, they are out of luck. FHA requires satisfaction of appraisal conditions prior to closing. Yet, REO banks typically will not authorize repairs prior to closing. Then, toss into the mix that bank repo buyers rarely want to pay for repairs before they own the home. One more disadvantage of Bank Owned homes or REO Properties is you will not know about the past of the property, but this can be reduced by doing some research on property in public records. Buying an REO property is not a simple and straightforward as some imagine. Banks may verbally accept your offer, while trying to find a better offer. Many REO experts are involved in wholesaling their REO homes. They will pass along a deal they found in as is condition to another buyer for a nominal fee. REO tip...REO homes usually have no electrical service on, you should check the panel and make sure that the wires are attatched and that the power meter is still there. A common misconception is that foreclosures and REOs are the same. Do a Google search for 'Real Estate Owned' or 'REO'; this will give you a list of websites where you can find bank owned properties. These are the terms that lenders use to describe properties that they repossessed though foreclosure and they are more than egger to get rid of them. Also it's a good idea to scan through your local classifieds for ads that contain one of the following: 'motivated sellers', 'handyman special', 'needs TLC'. |
