If you’re reading this article, I’m assuming that you’re interested in learning about Real Estate Owned (REO) properties and obtaining some great REO listings for homes, which you can either purchase for your own personal use or even resell. Either way, you may want to read this article since this knowledge can ultimately save you a lot of time and trouble with this process.
First of all, you need to basically understand something about purchasing REO properties. These are “distressed” properties that have been bought for a “song” and are selling for “bargain prices”. Logically, this means that the buying these types of properties will be very competitive. Common sense will dictate that you need to be one step ahead of the competition. The main criteria to accomplishing this is to select the right property. There are several ways to doing this including obtaining a full property history, determining what are the competing offers and conducting an analysis of the listing agent’s sold REOs. This will give you the optimum chance at getting the property at your desired price.
Regarding competing offers, if there are no other offers, then you have a very good chance of obtaining the property at the asking price. But, on the other hand, if there are even as a minimum of two competing offers, then most likely than not, you’re going to buy above the asking price. But you need to find out what the pending offers in order to determine whether or not you want to purchase above them. Fortunately in today’s distressed economy, there are many foreclosures, so you can afford to be selective.
So, you’re looking for REO listings. Before you even consider about getting into Real Estate Owned (REO) properties, this article may be a good starting point first. I’m sure this will save you a lot of unnecessary time and effort in your quest of seeking the right listings that will actually bring you some profitable results. Please continue reading to learn more.
Although there is most likely no reason to explain what REO properties are, but assuming you’re REALLY new to this, an REO property by definition is a real estate property that has been purchased either by a bank or mortgage company through an auction. These are typically properties that have been foreclosed and now can be bought for a “pennies on a dollar”. And out in the real estate market, there are listings of these types of properties. The question remains, “where do you seek out these listings and how do you know if they’re in adequate condition?”
Let’s begin with where you can find REO listings. Luckily, REO listings can be found at practically any bank or mortgage company that has a site online. There are thousands of these sites online including Wachovia, which is one of the largest institutions. However, keep in mind that all these sites don’t make this process any easier. In fact, it becomes much more difficult with so many choices. Unanswered questions such as “how do you know what properties are any good”, or for that matter, “which properties are the ones YOU’RE looking for”?
The Trustee is the owner of the property, not the Trust itself.
The Beneficiary has the power to direct the Trustee to deal with the title and proceeds of the property. They also have the right to manage, possess, use, control, sell, rent or mortgage the property. The beneficiary has an economic interest in the property.
When a homeowner puts a property into a land trust they convey fee simple absolute ownership to the Trustee. The land trust will state that legal and equitable title is vested soley in the Trustee with the homeowner named as the beneficiary.
The beneficiary can direct the Trustee to manage the property. Any liens remain in place but do not get paid off at this time. The land trust protects the property from other creditors by making sure no more liens are placed; this is good information for the short sale lender to know.
Many are encouraged to get into real estate investing. Despite the crises, that besets the world today; the industry has proved to be very profitable. REIWired says that investors are exploring the many possibilities that real estate offers. Whether it is flipping houses, rehabbing homes, rental management or whatever venture you have been mind that real estate has to offer. If you are planning to invest in rentals, there are a few things that you need to keep in mind for you to become an efficient landlord.
Managing rental properties can be very profitable. For more tips on real estate investment, go to REIWired.
Unfortunately in this business you will encounter a collection of never ending daisy chains of “brokers” and self proclaimed “mandates” constantly misrepresenting product they do not control nor have the proper authorization to advertise or sell.
Only through training and experience will you be able to recognize these clowns of the business within 2 minutes of being on the phone with them. You will learn early on that it is not about finding the deals, but learning how to spot these clowns and get off the call as fast as possible.
These people who obviously have nothing else better to do will be your downfall if you do not learn early how to get pass them and on to the real product source, which is the most difficult point to locate.
I have found a house that has gone through the foreclosure process and is now bank owned or REO. Called the bank, which said it is an investment property. Got the contact information and was told the house is going to HUD. The house is not listed on HUD.gov. So, how long will it take for the house to be listed on HUD.gov?
Heads Up Realtors! Bob Younger explains: REO property vacant over 30 days – try to secure insurance ahead of time. Vandalism happens! Items need to be addressed before the close of escrow; photos to be sent to the insurance companies! Good luck out there – call Bob with any questions: 909-481-8808.
Without goals you won’t know where you’re going – and you won’t know whether you’re getting there. Without goals, you won’t succeed. It’s that simple.
Goals are like building blocks: extremely short-term goals support other short-term goals, and short-term goals support mid-term and long-range goals. To determine your short-term goals, you’ll have to determine your long-term goals first.
Let’s say your goal is to own $10 million in real estate in twenty years. Great! Now you have to get there. You can break that goal down into manageable chunks:
* After five years: own $1 million in real estate.
We put in an offer on a Wells Fargo REO on Sat June 14. It was listed on June 13. The offer was $6,500 more than the asking price. We are doing 100% financing…97% through FHA and the down and closing costs are through the HART PROGRAM. We also can do a 30 day or less escrow. The comparables are about $30,000 higher, but with the way the market is I don’t know if it will stay that way. The bank is putting a 5 day hold on all offers. So now there are several offers on this house.
So my question is…is our offer a good enough offer? Is it really true that people are having a hard time getting pre approved for home loans now?
Thanks in advance for any help given.
The Comparable are $30,000 higher than the house we made an offer on.
It is amazing to me what we are reading about virtually on a daily basis today in the news regarding the housing market. On Monday 10/19/09 I was reading of an auction that took place in the Chicago area over the weekend. Someone’s seven-bedroom, three-bath, dream home sold for $7,000.00. Another home was passed on by all investors for an asking price of only $1,000.00 drawing a reaction from one observer, ‘gosh, you would think someone would have bought that and rented it to an individual who qualified for a $600.00 a month Federal rent assistance voucher’.
The National Board of Realtors has been reporting of increased housing sales for months now. Yet they are still down playing their reports like the one for the first quarter of 2008 that 78% of the sales in Stockton California were from foreclosures. The Board of Realtors is still touting sales increases for the past nine months, but what kind of sales are they really? I thought I would share with you a brief article that appeared in the Wall Street Journal that reflects the kind of sales they are;
As a real estate investor I am frequently asked, what does REO mean? REO is an acronym for real estate owned which refers to foreclosure properties owned by the bank. Once foreclosure homes are returned to lenders, the bank holds the property title and is responsible for maintaining real estate until it is sold.
Another question buyers want answered is what does REO mean in terms of obtaining reduced prices? In general, banks charge a slightly higher price for real estate owned properties. In addition to recouping financial losses from unpaid mortgage loans and the foreclosure process, banks remove attached liens and judgments in order to sell real estate with a clean title.
Bank owned homes are sold directly through each lender’s loss mitigation department or a designated real estate agent. Properties are sold in as-is condition at reduced rates. Buyers are responsible for repairs and renovations to return REO properties to livable condition. Some homes are in immaculate condition, but the majority requires some level of repair, while others are in need of complete renovation.
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