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Henry County, Virginia Homes For Sale. Find a Wholesale Bank-Owned REO in Henry County, Virginia, VA:
Featured Topic: REOREO's are non performing assets that burden the books of banks as they are not set up to handle real estate. In an REO, the bank now owns the property and the mortgage loan no longer exists. REO properties in poor condition will generally require an all cash offer and be sold as is. The banks will seek to limit their liability in these situations. 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. It is important for investors to follow the sales statistics in the area they are buying in so they can make confident and competent REO offers. If an REO is HUD or VA owned, the offer will need to be on special forms. The agent representing you will have the original forms that your need. 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. Most REOs are secured by an agent lock box and will require an agent to access the interior. 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. 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. There are some credit issues that REO must allow for a certain time to pass before you can qualify for a FHA loan. They are follows: Two years from the date of discharge for a Bankruptcy and Three years from the date of Foreclosure. The bank does not want to sit on its inventory. Since it did not receive its minimum bid from an investor or home buyer during the foreclosure sale at the courthouse, the bank is likely to price that REO home for less, just to get rid of it. REO lenders with cash buyers don't have to worry about the transaction closing. Lenders often deny loans for pre qualified buyers because the buyers' qualifications sometimes change upon further scrutiny. The REO offer process in many ways is less complicated, there is little to no emotion on the part of the seller the REO lender, and deals can be completed much more quickly. The REO warranty Home Protect will cover electrical, plumbing, air conditioning and heating systems, as well as ductwork and many major appliances. Freddie Mac will pay for the first two years of the warranty after which buyers will have an option to continue the warranty on their own. If you get your REO bid accepted, move quickly to get your docs signed and counter signed as the bank will still entertain offers until you are in escrow. REO tip....take extra care to estimate repair costs on the lower priced inventory. There is usually a reason for the low list price and many times it is a costly or loan killing defect. There are three phases of a foreclosure; pre-foreclosure/short sale, auction, and REO (real estate owned) The REO option offers many more benefits and less stress than the foreclosure auction. |
