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Clatsop County, Oregon Homes For Sale. Find a Wholesale Bank-Owned REO in Clatsop County, Oregon, OR:
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? Investors that are pre qualiifed and work with a competent lender are in a better to position to have their REO offer accepted and close escrow in a timely fashion. 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. 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. Even professional appraisers are struggling with determining property values as the REO inventory levels are skewing the current sales data. Most REO agents work for one or two banks. Some listing agents are exclusive listing agents for REOs, and they do not list any other type of property. Since REO agents deal in volume, they typically apply the same pricing principles to all their REO listings. Many of the poor condition and damage issues associated with REO homes is due to the homeower taking out their anger on the property. An REO investor must take care to properly evaluate the condition of a listing and compare that with the standard of the active, pending and sold comparable homes in the area. It is important to understand the local economy in your area when considering cash flow over a longer period of time. Fannie Mae sells each REO property as is, which means that the buyer accepts the property "as is." Fannie Mae is not responsible for fixing any problems after settlement. 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. Some banks will not sign a counter offer on an REO until all terms are mutually agreed upon between the parties verbally. A faster cash closing puts money into the REO lender's pocket sooner. There are also fewer things that can go wrong in a short escrow period. 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 Home Steps REO warranty is available only on single-family HomeSteps homes. The home must be sold as primary residence for at least $25,000 in the 48 contiguous states or Washington, D.C. The warranty and closing cost opportunities are not available on HomeSteps homes sold as investor properties, second homes, or vacation homes. It is important to consider quality when buying an REO in this market. A quality home in a quality area in good condition will produce a higher quality renter and improve vacancy rates, cash flow and appreciation over time. This may be more costly initially and take more work to find but will pay dividends at the end of the cycle. REO tip...When comparing recent sales to your subject property, be sure to make adjustments for differences in square footage. An REO property allows you to gain access to the property for an inspection. Lenders have a responsibility to their shareholders and they lose money on non-producing assets. We expect REO activity to spike in the coming months as foreclosure delays and moratoria implemented by various state laws come to an end |
