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King County, Washington Homes For Sale. Find a Wholesale Bank-Owned REO in King County, Washington, WA:Featured Topic: REOMany investors prefer buying REO inventory to auction purchases as the auction process cant require much time and effort with no result. Most foreclosure auctions do not result in bids because, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. Fannie Mae guidelines allow investors to buy up to 10 investment properties. This is an excellent opportunity to build a portfolio of cash flow REO houses. Although speculative investing is blamed for many of the current economic problems, knowlegeable investors will ultimately end up being a large part of the the solution and help liquidate the bank owned inventory. It is critical for REO buyers to communicate competence, integrity and ability to close escrow to the listing REO agent. REO investors who understand the market values in their chosen areas are able to make quick and confident buying decisions beating the novice investor to the punch. The only time the deposit check is cashed in an REO offer is when the offer has been accepted. REO vs Short Sale. A home owner in foreclosure may be working on a short sale, loan mod and other options simultaneously to delay their foreclosure sale date. An REO property belongs to the bank and is available for purchase the day it is listed. 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. Many factors must be taken into account when determining market rent in a declining economy. HomePath Mortgage Financing is available on Fannie Mae homes and is available to both owner occupiers and investors. A loan prequalification for an REO purchase doesn't mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted. Bank REOs homes are rarely in turnkey condition. Many have been stripped or vandalized, and some are victims of deferred maintenance. If the bank REO does not appraise for the purchase price and the buyer is obtaining a loan that requires a 20% down payment or less, the buyer's lender will not fund unless the buyer coughs up more cash or the REO lender discounts the price. Cash buyers don't make offers contingent on an appraisal. 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 competition and short time on the market before and REO goes pending has many REO buyers feeling discouraged. But many of these escrows will not close and the REO house will be back on the market. Many REO experts are involved in wholesaling their REO homes. They will pass along a deal they found in as is condition to another buyer for a nominal fee. The current REO market in southern California has shown a recent drop in inventory and that has created a price increase. 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. Savings of 20% to 30% off the fair market value are absolutely possible, making an REO purchase the best way to buy a property for the first time home buyer or property investor. They give prospective buyers immediate access to the property for inspection. They remove all liens and back taxes. They allow negotiation on all rehab costs, interest, closing points and loan amounts. The purchase is described as 100% risk free and they may allow a less than normal down payment. The bank will also evict the tenants if necessary. So you can see the benefits of of buying REO properties. In today's housing market the glut of foreclosures has created a rare investment opportunity for those who know what they are doing. |
