 |
 |
|
Missouri, MO Houses For Sale. Find a Wholesale Bank-Owned REO in Missouri, MO:Feaured Topic: REOREO's are non performing assets that burden the books of banks as they are not set up to handle real estate. 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 financing is available for REO properties but will require a substantial down payment, good fico score and documented income. Although speculative investing is blamed for many of the current economic problems, knowlegeable investors will ultimately end up being a large part of the the solution and help liquidate the bank owned inventory. The majority of recent closed sales in Southern California are REO wholesale purchases. Many novice investors do not consider the quality of the area they are buying in because they are fixated on buying the cheapest house they can find. Investor sshould exercise caution and avoid overestimating the value of an REO property. It is common to see holes beat into the drywall of REO homes. It is critical that investors not be discouraged by Real Estate agents who speak negatively about creative REO buying. Many times they are just not familiar with the subject. 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. Fannie Mae sells each REO property as is, which means that the buyer accepts the property "as is." Fannie Mae is not responsible for fixing any problems after settlement. If an REO buyer has a Federal Tax Lien that is in a repayment agreement, you do not have to pay it off in full but you must be able to qualify with the monthly payment of the repayment agreement. State Tax Liens typically must be paid in full prior to closing your FHA loan on an REO. Bank REOs homes are rarely in turnkey condition. Many have been stripped or vandalized, and some are victims of deferred maintenance. 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. Usually the Bank won’t accept an offer directly from you. Banks accept offers only from a real estate agent or broker. The bank will not do or pay for any repairs on REO's in many cases. You will be buying the REO property as is. Make sure your offer includes an inspection contingency that allows you to withdraw if the inspections reveal significant problems. When looking for the cheapest REOs, an investor should go out and really see the areas and inventory. Usually there is a reason for the low pricing. That does not mean that there are not super deals but the listing agents are pricing according to area, desirability and condition. They are looking to dump the house quick and you don't want a lemon REO. REO tip....take extra care to estimate repair costs on the lower priced inventory. There is usually a reason for the low list price and many times it is a costly or loan killing defect. REO Part II: Banks have departments that must maintain these homes, keep the lights on and keep the taxes paid. Banks cannot legally sell real estate directly to the public, so they enlist the services of a real estate broker to list the home for sale. Because of all the unknowns and requirements with foreclosure auctions many people prefer buying an REO. The REO option offers many more benefits and less stress than the foreclosure auction |
