 |
 |
|
North Carolina, NC Houses For Sale. Find a Wholesale Bank-Owned REO in North Carolina, NC:Feaured Topic: REOMuch of the REO inventory has been vacant for a long period of time and need repairs making great fixer upper deals abundant. REO offers are usually FAXED to the bank because the listing agent needs your originals and there is no formal presentation so keep in mind nothing happens evenings and weekends because banks are closed. REO, or Real Estate Owned, is property that failed to sale at a foreclosure auction and is now owned by a bank. Buying renting and holding a Southern California REO rental home can create a monthly cash flow and future equity appreciation as we are in a historically low period in the real estate market. 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. Buying cheap cash flow REO's in bad areas will mean lower rents, higher tenant turn over and increased property management hassles for the hold investor. The use of weasel clauses in an REO purchase shows a lack of confidence on the buyers part and should be avoided when making REO offers. REO vs Short Sale. The bank will list its REO property with a real estate agent who is much more likely to understand market value than a banks loss mitigation department in a short sale. 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. It is important to be mindful of potential holding costs when calculating monthly cash flow on an REO purchases. Fannie Mae's HomePath database includes only properties that are owned by Fannie Mae 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. Hire a buyer's agent who has experience working with REOs. A proof of funds letter is frequently used in property short sale and REO purchases to provide explanation that a real estate investor or buyer has the ability to purchase the property they are making an offer on. Each lender has its own procedure for the sale of REO homes. So once you have identified a property, check out the procedure of the bank which is selling the REO property. Nearly two million foreclosure filings were recorded during the first half of the year 2009, according to the market research company RealtyTrac which will create a glut of REOs for years to come. It is good to see a neighborhood at different times of of day. A quiet street at noon can be a war zone at night. This reality will be encountered by your renter and can affect rent amount and vacancy rates. REO tip..if you are unclear if a street or neighborhood is rough, you call call the local sheriffs department and ask if they have a high volume of calls to the area. 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. 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. |
