 |
 |
|
Agua Fria Homes For Sale. Find a Wholesale Bank-Owned REO in Agua Fria, New Mexico, NM:
Featured Topic: REOLenders are selling off their Southern California foreclosures at deeply discounted prices making this a profitable time for real estate investors. Before making an offer on a REO, have your agent contact the the listing agent and ask the following questions: (1) Are there any inspection reports, (2) What work has the bank agreed to, (3) Is there a special "as is" form, (4) How long does it take the bank to accept an offer, and (5) How does your agent deliver the offer? In a REO situation, a bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount and, if there are no bidders that are interested, then the bank will legally repossess the property, and as soon as the bank repossess the property, it is listed on their books as REO (Real Estate Owned) and is categorized as an asset (non-performing). Many investors make the mistake of waiting for the television to tell them that the bottom of the real estate market is here while the REO market is providing cash flow opportunities right now. It is best to eliminate most contingencies on offers made on REO purchases. Just because an REO has a low list price does not mean it is a great deal relative to current market value. When flipping REOs investors must be careful about reselling to people that can't close quickly. Because they are vacant, many REO homes get vandalized and sustain damage. Most REOs are secured by an agent lock box and will require an agent to access the interior. Savvy investors take care to preselect good neigborhoods, location and configurations that would be desirable for family living when looking for REO cashflow opportunities. HomePath Mortgage financing is available from a variety of lenders both local and national. REO buyers should be aware of the following basic FHA loan qualification guideline: Your new mortgage payment should be approximately 30% of your gross (before taxes) income. Remember that these guidelines are subject to change at anytime and you should stay abreast of current loan programs. If you ask your buyer's agent to search MLS for REOs, you will probably find that a very small handful of real estate agents specialize in listing REOs for sale in your neighborhood. A cash REO buyer does not need 30 or 45 days to close if the buyer is not obtaining a loan. Once the home inspection and other contingencies have been satisfied or released, closing can take place in as little as 3 to 7 days, providing the buyer is willing to sign a lead-based paint waiver. 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. 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. If you get your REO bid accepted, move quickly to get your docs signed and counter signed as the bank will still entertain offers until you are in escrow. 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. Although they are similar they are in fact different with the REO being the direct result of a foreclosure option sale. Once the foreclosure has been initiated the bank or loan company legally has the right to sell the property regardless of whether the owners have moved out or not. The foreclosure auction is different than an REO property. |
