 |
 |
|
Bland County, Virginia Homes For Sale. Find a Wholesale Bank-Owned REO in Bland County, Virginia, VA:
Featured Topic: REOMuch of the REO inventory has been vacant for a long period of time and need repairs making great fixer upper deals abundant. 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? In a REO situation, a bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount and, if there are no bidders that are interested, then the bank will legally repossess the property, and as soon as the bank repossess the property, it is listed on their books as REO (Real Estate Owned) and is categorized as an asset (non-performing). This is the optimum time to learn about REO's and cash flow as there will be a large transfer of properties needed to liquidate the bank owned inventory. REO buyers must prove themselves to be dependable and trustworthy to REO listing agents to gain an inside advantage and develop a long term business relationship. Lenders for incoming home buyers are forcing appraisals downward based on the sales data created by REO home sales, which are often in poor condition and not reflective of market value. Investor sshould exercise caution and avoid overestimating the value of an REO property. Most successful trustee sale buyers are very experienced and have advanced research techniques. Many investors find the REO market to be a much safer environment. 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. Discussing cash flow numbers and formulas with you CPA or real estate lawyer is a good idea to fully understand the long term tax implications of a buy, rent and hold REO deal. 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. 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. REO listing agents generally represent the seller, not the buyer. A proof of funds letter is frequently used in property short sale and REO purchases to provide explanation that a real estate investor or buyer has the ability to purchase the property they are making an offer on. 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. Nearly two million foreclosure filings were recorded during the first half of the year 2009, according to the market research company RealtyTrac which will create a glut of REOs for years to come. Many investors would like to get into the REO market but do not have the time to do the negotiation, repair and rental tasks that are required. A third party REO expert can be a great help in this process and can deliver excellent home for a small fee. REO tip...REO homes usually have no electrical service on, you should check the panel and make sure that the wires are attatched and that the power meter is still there. 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. REOs aren't for everybody; they have as many problems and issues as other homes, sometimes more. However, in these times, the price you pay can more than offset the cost of restoring the house to its former glory. |
