Archive for August, 2010

What are the various lucrative options available under foreclosure homes for first time buyers

Tuesday, August 31st, 2010 at 4:26 pm  
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With the number of foreclosure homes surging the real estate market by thousands every month, first time buyers have the rare opportunity of purchasing some prime deals at nearly half of their actual worth. Some of the most lucrative options under foreclosed properties include REO or bank owned houses, fixer upper homes, pre-foreclosures as well as those that are being sold through public sales.

 

REO properties are basically houses that have been reclaimed by banks when the previous owners have been unable to repay their housing loans.  Under such circumstances the house is taken over by the bank which will thereafter put it in the market for sale at a much reduced price than its actual worth. As these properties are owned by banks they are considered to be one of the safest investment options. Another advantage of buying an REO property is that they have a clean history without any pending taxes which makes them a very safe a viable deal on the whole.

 

Fixer upper homes are also a type of foreclosure homes that have currently become very popular in the real estate market. These houses comprise properties that have been in the market for a long time and are not in the best of conditions and therefore require. This feature which makes them highly negotiable and they are therefore sold at unbelievably reduced prices. As lenders are especially keen on disposing of properties that have been foreclosed for a long period of time, fixer upper homes offer some of the most lucrative prices in the market. A buyer on purchasing a fixer upper home can carry out some renovations and resell it at a much higher profit in the market immediately or use it for his residence as well as a long term investment.

 

Apart from investing in properties that have been foreclosed, home buyers can also make a lucrative deal by going for a pre-foreclosed one through the process of short sales. These comprise of properties that are facing an impending foreclosure. At this stage the lenders are more than keen on accepting a suitable offer even if it is highly reduced as it saves the sellers from spending more money on the process of foreclosure. Foreclosure homes are also sold through auctions or public sales which are also a very viable platform for finding prime property deals at bargain prices.

 

With a wide range of affordable housing options available under foreclosure homes, investing in these properties is a highly lucrative and sound real estate venture on the whole.

 

Fiona Livnat is an author with expertise in real estate foreclosures. She has over ten years of experience in writing about foreclosure homes . Her commitment to help people is reflected in her writing. For more details please visit http://www.foreclosureconnections.com/


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How long does it normally take a bank to respond to an offer on a foreclosure?

Monday, August 30th, 2010 at 10:27 am  
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I gave a best and final offer on a foreclosure home in Georgia three weeks ago. I know that the offer went from me to my agent to the listing agent to Fidelity National Asset Management Group and then to Chase REO Bank.

In fact the asset manager thought it was taking so long he submitted it twice.

Is there anything I can do to speed up this process? There are many other things I would like to do but cant get started until I know exactly where I stand with this.

Is there a specific reason why the bank would sit on my offer for so long when the other two offers I had given were responded to within 48 hours?

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Foreclosure vs. REO

Sunday, August 29th, 2010 at 12:31 pm  
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REO is a common term in the real estate market. It is the abbreviation for Real Estate Owned. The term seems to refer to any property. However, this is used to identify properties that were not sold during the foreclosure sale. This also means that there will not be an REO if the foreclosure sale is successful. The lender repossesses this property after failing to find a buyer.

You might ask why people invest in REOs. After all, no one seemed to want it during the auction. Although this is the case, most REOs are in good condition. The only problem that most REOs face is that the previous owner could no longer afford to pay the mortgage. And besides, your decision to purchase a property should be based on the different factors of choosing a home and not on whether it is foreclosed or REO.

However, investing in REO is a good thing. This is because of the several benefits you can enjoy. After knowing the benefits, people change the way they perceive REO. After all, they are not problematic. Additionally, purchasing one has many advantages. Some of them are indicated below.

One of the benefits of purchasing REO is the fast and easy process. Most first time home buyers will surely appreciate investing in one because they will not have problems in most of the requirements. First, they will not need to evict anyone because the lender responded appropriately. In addition, the property is cheaper by about 20% compared to the market value of most properties in the market. It is cheaper because the lender wants to have the property sold right away. They do not want the property to stay long in their books. It is not a good indicator for the shareholders and other stakeholders.

REOs are mostly risk-free. This is because the lender sees to it that it has a good title. If you buy such property, you do not have to worry about liens and other restrictions. Moreover, you can renegotiate the exiting value of the property. But you have to be careful with the offer you make. Very low offers will trigger the lender to look for another buyer.

As you may have observed, there are several benefits of purchasing REO. However, why would one want to invest in foreclosed properties? Many do so because the properties are cheaper. Aside from that, REO will not exist if the foreclosure is successful. In order to purchase a property, the buyer has to bid. The bidding starts at a minimum value, which covers the balance of the mortgage and other expenses relating to the foreclosure process.

The successful bidder will have the property as is. This means that he will have the responsibility of evicting the occupants. He has to deal with existing liens as well. He has to deal with the damages and other repairs necessary for the house.

It is beneficial to purchase REO. However, its availability is not guaranteed. There are advantages of purchasing foreclosed properties as well. However, you have to exert efforts if you are able to acquire one.


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    How to Buy a Foreclosure

    Sunday, August 29th, 2010 at 4:25 am  
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    When a lender decides to foreclose on a property, a notice of default is filed. This document is a public record, and can be used for locating foreclosure properties. You can then use the newspapers to find these filings.

    Another great way to find foreclosures if you know the neighborhoods you’d like to live in, is to drive through them. Look for real estate signs that say; “Foreclosure”, “Bank-Owned” and “Bank Repo”.

    Call the phone number listed on the signs and ask about other foreclosure listings in the area. But don’t forget to also ask about the foreclosed properties that will be in the upcoming market.

    It’s the perfect way to get a jump on the other buyers by asking about the new foreclosures not yet listed. Sometimes takes weeks for the bank management to approve the list price and you can get.

    Many banks maintain online lists of foreclosed properties, so check their web site. Other lenders hire an asset management company to handle foreclosures on the lender’s behalf. Contact them for their latest foreclosure lists.

    Foreclosed properties are available through the following government agencies; HUD – Housing Urban Development, Fannie Mae, Department of the Treasury and the SBA – Small Business Association. Visit each site for more information.

    Usually there are a very small handful of real estate agents that specialize in listing REOs for sale in your neighborhood. They can be found by searching the MLS (multiple listing service). Just ask your agent to search the MLS for “REOs.”

    These methods were valid years ago but NOT any more.

    With the HUGE number of foreclosures today it’s not very practical to use these traditional methods, mentioned above. It just takes too much time and you won’t be able to find them all.

    In fact because there are so many, you now need an electronic method to;

    While this may be the only practical way to search it is also the best way to get your dream home at a dream price.

    That’s exactly why I recommend a foreclosure specialst. Free of charge they provide you with;

    Click here to find out which foreclosure specialist I personally recommend

    Rick is an investment and real estate expert with 27 years of experience. At his website you’ll learn how to search thousands of local foreclosure listings. Ideas on how to use keyword criteria to find the exact type of house you want, in the perfect neighborhood. For help with finding your dream home go to
    http://www.Estore-Services.com/homes


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    www.BankREOProfits.com Bank REO property is being given away at HUGE discounts! Buy bank foreclosures from the source! Learn how here…

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    Three Powerful Foreclosure Lead Sources

    Saturday, August 28th, 2010 at 10:26 am  
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    When people think about real estate foreclosure investing, they most often think about the foreclosure auctions. They imagine a group of investors bidding on properties in a meat market-like atmosphere. In actuality, there are several places in the foreclosure process that investors can home in on for property leads, and a couple of them don’t involve the auction block atmosphere.

    The first stage of foreclosure investing involves pre-foreclosures. When a property owner falls behind in their payments, a notice of default is issued. This notice is filed (in most cases) at the county courthouse, where it becomes a public record, and that means anyone can access this information.

    Once the notice is filed, the property owner has a specified time frame known as the “redemption period,” in which he must cure the debt or else the property becomes foreclosed on and goes to auction. In general, pre-foreclosures involve dealing with the homeowner face-to-face, which means a lot of time is spent going back and forth. One thing most amateur investors find when dealing with property owners in pre-foreclosure is that a lot of them are in denial and despite the arising foreclosure problem, they refuse to cooperate! For that reason, pre-foreclosures can be extremely time consuming.

    Auctions are the second stage of the foreclosure process. At these auctions, investors will either have to be physically present at the county courthouse steps or hire someone to be their representative (power of attorney) to bid on these foreclosed homes. Again, time and money are issues here because financial resources can get eaten up rather quickly with all the traveling or hiring of representatives.

    What’s more is that once you become the winning bidder for an auction, you’ll typically have 24 to 48 hours to overnight or wire funds to the attorney. That’s not a lot of time to put a deal and funding together, and sometimes doing this can be difficult. Oftentimes you have to do this without ever having seen the inside of the house since the former owners are probably still living there.

    These are both good options, but I specialize in REO foreclosures, which is the third stage of the foreclosure process. With REO properties, I don’t have to travel all over the country to close killer deals. In fact, I can pretty much do most of my research online and with a solid power team; a smooth process to profit can be created!

    REO foreclosures are properties that were not sold at auction. When no one bids on a property, it goes back to the bank and is then seen as a liability by the bank because it’s not making them any money. These homes can most easily be found on the MLS (multiple listing service) of the area you’re investing in. This makes the investing process much easier because all I deal with is a Realtor® who submits the offers and helps with the negotiation process until a deal is solidified.

    With all that being said, you’ll still need to do your due diligence on each property and form a solid power team who will help you with your investing.

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    HUD Homes for Sale, Buy HUD homes and REO Foreclosure

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    bootcamp.segadvisors.tv Free Seminar with Robert Shemin. How to Get REO Listings, find HUD Homes for Sale, REO Foreclosures, rehabbed REO Homes through Stone Equity Group. Buy HUD Homes.

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