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Lee County, North Carolina Homes For Sale. Find a Wholesale Bank-Owned REO in Lee County, North Carolina, NC:
Featured Topic: REOREO stands for Real Estate Owned and refers to a property that has been returned to a bank or lender in a foreclose proceeding. Most foreclosure auctions do not result in bids because, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. Many times homeowners get in over their heads when it comes to purchasing a new home. If they have taken out a loan from the bank and are unable to make their payments their home will be turned over to the bank. From there the bank will place the property on the market for auction or sell. These types of properties immediately become REO Properties and are generally a steal to catch. Many investors choose to use property managements and home warranties on their REO rental homes to minimize their time commitment. It is best to eliminate most contingencies on offers made on REO purchases. Many of the currently low priced REO's that look good on paper are in fact non conforming and have many bad features such as undesirable configurations, small square footage, border noisy streets or have bad add ons. In many cases, the list price of an REOhas little bearing on the value of the home. The market value carries the most weight. If you are up against competing offers, other buyers will offer more than list price. 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. REOs with swimming pools typically have empty or half empty pools that will require repair to the plaster, tile, electrical and pump equipment. This along with a smaller buyer group, increased liability in a hold situation and higher insurance will keep many investors from bidding on pool homes 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. 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. Bank REOs homes are rarely in turnkey condition. Many have been stripped or vandalized, and some are victims of deferred maintenance. Buy an REO when the bank finally relents and lowers the price. And don't just wait for this to happen. Make your own luck. Find the right buyer, know when the lender is going to lose patience, and show up with the right offer at the right time. An REO can be a good opportunity to get a property below market value, with a clear title and free possession. When you make a REO purchase offer, the bank will almost certainly respond with an counter-offer. this is just to show their auditors that they had done everything possible to get the best price, so you should always negotiate REO's to get the best price Many REO buyers are using current market rents to establish a buy price. This model is similar to a commercial real estates buyers approach. REO tip..to help project the health of an area, pull the NOD and foreclosure data within a 1 or 2 mile radius. This should help you determine what the area will look like over a to 12 month period. Areas with a high level of foreclosure activity will have a longer road to recovery. A common misconception is that foreclosures and REOs are the same. Although they are similar they are in fact different with the REO being the direct result of a foreclosure option sale. Because of all the unknowns and requirements with foreclosure auctions many people prefer buying an REO. |
