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Schenectady County, New York Homes For Sale. Find a Wholesale Bank-Owned REO in Schenectady County, New York, NY:Featured Topic: REOThe financial industry is currently holding tens of thousands of REO properties which when released, will reduce market value even further. Most banks will not provide financing on their REOs but it doesn’t hurt to ask - especially if the property has extensive damage and you are purchasing it as is. Before submitting an offer on an REO it is prudent to for the investor to be pre qualified and clear about their financing. With the currently low interest rates this is an optimum time to finance REO's for long term hold and cash flow. An asset manager is the internal position within an REO department that allots the listings to local agents. They are judged on their ability to find agents that can quickly sell the inventory at the highest price. Buying cheap cash flow REO's in bad areas will mean lower rents, higher tenant turn over and increased property management hassles for the hold investor. 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. It is common to see holes beat into the drywall of REO homes. It is critical that investors not be discouraged by Real Estate agents who speak negatively about creative REO buying. Many times they are just not familiar with the subject. Savvy investors take care to preselect good neigborhoods, location and configurations that would be desirable for family living when looking for REO cashflow opportunities. You should also consider hiring a qualified professional to inspect an REO property, whether it has been repaired or not. Hiring a home inspector is a recommended practice, no matter what type of home you buy. In addition to your ability to pay for a mortgage on an REO (as indicated by your debts and income), FHA will look at your ability to repay as indicated by your credit report. Expect the bank to draw its own REO purchase contract or addendum to your standard purchase contract. Read it thoroughly and ask a real estate lawyer for advice if you do not understand it. Many are in fine neighborhoods and offer outstanding values. And while some REO homes do qualify as handyman specials, many are in very good condition. As rigid as REO properties or HUD homes may seem, the REO process is as much as part of foreclosures as the preforeclosure side of the business. 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 When looking for the cheapest REOs, an investor should go out and really see the areas and inventory. Usually there is a reason for the low pricing. That does not mean that there are not super deals but the listing agents are pricing according to area, desirability and condition. They are looking to dump the house quick and you don't want a lemon REO. REO: this is an acronym for Real Estate Owned, and this used to be called the bank department that managed the properties the bank had reacquired through a foreclosure process. The process starts with the notice of default filed and, in California, ends with a trustee's sale back to the lender (if no one else buys the property on the county courthouse steps). 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. REOs are a safer method of buying a home than foreclosures and short sales, but you might be paying more than you bargained for and be faced with repairs and replacements. |
