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Sumter County, South Carolina Homes For Sale. Find a Wholesale Bank-Owned REO in Sumter County, South Carolina, SC:Featured Topic: REOREO stands for Real Estate Owned and refers to a property that has been returned to a bank or lender in a foreclose proceeding. An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. In a competitive multiple bid process for an REO home, cash gives the investor and advantage over conventional and FHA financing. 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. Unlike a traditional purchase an REO buy is as is and the seller will require many disclosures to be signed that absolve them of liability. the buyer must exercise great care in analyzing their purchase. Buying well researched and identified cash flow REO homes now will create a solid portfolio that will provide great cash flow and equity appreciation in the future. Putting and or assignee on a REO purchase contract shows a weak buyer and makes the bank think the buyer isn't sure where their funds are coming from. A property that is still in foreclosure does not yet belong to the bank and the homeowner must be engaged. An REO purchase does not involve the homeowner. REO investors must visually inspect houses for the structural integrity of major components such as the foundation, roof, walls, plumbing and electrical. The bank will not take responsibility for the investors mistakes. Many REO investors seeking cash flow buy and fix a property based on overly optimistic market rent and incur long holding times before reducing the rent low enough to attract a qualified tenant. Fannie Mae does not warrant or guarantee any work that may have been done on an REO property, whether as part of its efforts to sell the home or pursuant to conditions in the purchase contract 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. REO listing agents make money by either selling a lot of REOs or operating as a dual agent. Under dual agency, the REO listing agent will earn both the listing commission and the buyer's agent's commission. REO Homes, because they’re sold in “as-is” condition, can often be a great, affordable opportunity for the fixer-upper. 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. 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. Many of the successful REO buyers are leveraging relationships with REO listing agents and buying inventory that is not on the MLS. Many REO investors do not realize the large number of homes that have gone back to banks but remain unlisted will eventually hit the market and have an impact on price. If the house does not sell in the auction, it reverts back to the bank. The lender now has the right to sell the property as an REO (real estate owned), the third and final phase of a foreclosure. Other ways to buy foreclosures are to buy at a public auction or buying bank owned or REO properties. These properties are often priced for less than what is owed on them because the bank does not want to hang on to a bunch of properties. |
