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Lewis County, New York Homes For Sale. Find a Wholesale Bank-Owned REO in Lewis County, New York, NY:Featured Topic: REOPositive cashflow reo houses are abundantly available in the Southern California Real Estate market, in particular the Palmdale Lancaster area has great deals for investors. In an REO, the bank now owns the property and the mortgage loan no longer exists. FNMA is offering special financing on their REO inventory properties. The benefits of Fannie Mae Home Path Special financing include low down payment and flexible mortgage terms. Many investors overestimate current and future market rents when analyzing a potential REO cash flow rental house. This is a highly critical step and should involve an expert resource on real estate market rent conditions. Real estate investors are already beginning to abandon their fears and pursue the abundance of wholesale REO's available creating a mini bidding frenzy in some Southern California communities. Many REO investors rely on the opinions of inexperienced buyers agents to formulate their offers. These agents are often desperate to make a sale and do not understand market value or cash flow analysis. The only time the deposit check is cashed in an REO offer is when the offer has been accepted. Many REO homes get broken into and as a result need their windows replaced. This is a huge problem for the banks and accelerates the need to liquidate. Many REOs are secured by an electronic SUPRA box and cannot be accessed by a number code. An investor must have interior access to a home to make a repair estimate. Giving the current state of our economy, factoring a decline in rents over the next few years is a good idea when calculating cash flow. Fannie Mae may make some repairs to REO homes to increase their marketability however, the buyer should be aware that other repairs may be needed. REO buyers should be aware of the following FHA loan qualification guideline: Last two years Income should be the same or increasing. Remember that these guidelines are subject to change at anytime and you should stay abreast of current loan programs. REO listing agents are typically top producing agents because of the volume of business they conduct. The US Department of Housing and Urban Development's REO properties are a result of FHA paying a claim to a lending institution on a foreclosed property which was financed with FHA Insured Mortgage and the lender transferring ownership of the property to HUD. HUD does not warrant the condition of its REO properties, but will give you the information it has about the condition of the property you’re interested in. You can use this information in formulating your bid. Many REO buyers select an area that they like, drive the streets and collect agent and property details off of the signs. In this regard they are able to touch and feel an area in a way that can't be done over the computer. Many REO experts are involved in wholesaling their REO homes. They will pass along a deal they found in as is condition to another buyer for a nominal fee. Many investors believe that the current drop in Southern California REOs mean that the market has bottomed. 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. Savings of 20% to 30% off the fair market value are absolutely possible, making an REO purchase the best way to buy a property for the first time home buyer or property investor. They give prospective buyers immediate access to the property for inspection. They remove all liens and back taxes. They allow negotiation on all rehab costs, interest, closing points and loan amounts. The purchase is described as 100% risk free and they may allow a less than normal down payment. The bank will also evict the tenants if necessary. So you can see the benefits of of buying REO properties. In today's housing market the glut of foreclosures has created a rare investment opportunity for those who know what they are doing. |
