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New York, NY Houses For Sale. Find a Wholesale Bank-Owned REO in New York, NY:Feaured Topic: REOIt is common for a few veteran and experienced agents to control a majority of REO listings in an area. If you are considering buying an REO, make sure that the price you pay is comparable to other homes in the neighborhood. REO properties in poor condition will generally require an all cash offer and be sold as is. The banks will seek to limit their liability in these situations. A great way to buy and keep an REO home in Southern California is to rent it out during the downturn and let the renter make your mortgage payment. If care is taken in the analysis of these purchases, a great profit can be realized in monthly cash flow and equity growth over time. It is critical for REO buyers to communicate competence, integrity and ability to close escrow to the listing REO agent. An educated, well researched offer can be profitable in almost any market but especially so in a down market with a glut of REO inventory. If there are no offers on the REO home, you can probably offer less than list price and get your offer accepted. However, if there are more than two offers, you will most likely need to offer above the asking price. Some REO listing agents are able to convince the bank to put out some money for repairs so they can sell the property for the maximum amount. Many REO investors use a mix of handy men and general contractor to complete their repair jobs. When selecting a buy an hold cashflow property, take care to think about what areas you would like to own homes in 5 years from now. It is important to consider this and not just buy the cheapest deals. Home Path Renovation Mortgage Financing is special financing on Fannie Mae homes and is available from several lenders. 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. The bank may ask for you to submit a loan application so it can prequalify you for an REO, however, you are not obligated to obtain your loan from that bank. 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. One of the best advantages of buying REO properties is most of the REO property is below market value. Another advantage is REO properties is very easy to find, banks have a number of them and will love to sell them. While REO investors are underbidding on many foreclosure properties, Christopher Thornberg, a principal at Beacon Economics in Los Angeles, said that interest is coming from “vulture funds” with millions of dollars to spend on distress sales. Thornberg said Wall Street vulture funds are amassing war chests in preparation for a new cycle of opportunities in loans or bonds of struggling financial companies or homebuilders. 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....Take note of the condition of the top sold comps in your area and try to estimate your repairs to the market standard. Over repairing can eat away at profits and under repairing can take your property out of consideration for top buyers. What are the benefits of buying an REO property that has been foreclosed on and what are the reasons they failed to find a buyer? We expect REO activity to spike in the coming months as foreclosure delays and moratoria implemented by various state laws come to an end |
