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Catawba County, North Carolina Homes For Sale. Find a Wholesale Bank-Owned REO in Catawba County, North Carolina, NC:Featured Topic: REOIt is common for a few veteran and experienced agents to control a majority of REO listings in an area. 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. In a competitive multiple bid process for an REO home, cash gives the investor and advantage over conventional and FHA financing. Many factors are often overlooked by investors when calculating positive cash flow on an REO rental property such as repairs, maintenance, taxes, insurance, municipal fees, vacancy and a host of other potential fees and costs. Currently, many wholesale REO's in Southern California are being tied up under contract within a few days of being listed. A large number of novice investors are making offers on REO properties without understanding their true market value. Lenders are flooded with foreclosures and aggressively slashing prices on REO foreclosed homes. 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. Home prices are at their most affordable in many years, which has opened up home ownership to many who had been locked out during the housing boom. And now, the federal government and many states are launching plans to hook up buyers of REO homes with very attractive terms. Discussing cash flow numbers and formulas with you CPA or real estate lawyer is a good idea to fully understand the long term tax implications of a buy, rent and hold REO deal. 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 basic FHA loan qualification guideline: Foreclosure's must be at least three years old, with perfect credit since. 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. The REO offer process in many ways is less complicated, there is little to no emotion on the part of the seller the REO lender, and deals can be completed much more quickly. 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 investors believe that the current drop in Southern California REOs mean that the market has bottomed. 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. Real estate brokers in turn with the REO manager within the bank to negotiate through an offer. 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. |
