Friday, September 3rd, 2010 at
4:26 pm
What are the different types of real estate investing opportunities?
While the rest of the economy is in shambles, and record numbers of foreclosures make headlines, real estate investors are earning thousands of dollars by buying and selling homes. How is it possible? It seems that real estate investors know a thing or two about systems, strategies, and styles of investing that the average homeowner does not. If you are a budding real estate investor and you’re looking to invest in homes but don’t know how, here are some of the basic strategies that investors are using.
SHORT SALE: A short sale is when you purchase a home because the bank is willing to sell it for less than what is owed on it. This happens a lot because banks know that they cannot collect their entire lost amount if they have to bring a house all the way through the foreclosure process. So you can buy a home for less than what is owed, and re-sell it someone else for a profit.
REO: REO stands for “real estate owned” and this is when the bank has taken ownership of the property. When you buy the property, you are not buying it from the homeowner but rather from the bank. The banks will often let homes go because it costs them thousands of dollars to re-list and sell homes and they don’t want the non-revenue-generating real estate on their books.
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Friday, September 3rd, 2010 at
12:29 pm
Basically a foreclosure is a situation in which a home owner defaults on the mortgage payments for his house. Such property which are foreclosures for sale are called as distressed because typically the home owner is in financial distress and has defaulted on his payments. The owner may be in financial distress because of the following reasons:
1. Laid off/fired or quit job
2. Unable to continue job due to medical conditions
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Thursday, September 2nd, 2010 at
11:56 pm
The nation has spent too little time on community problems that have arisen from the country’s housing crisis, the CEO of the Boston Federal Reserve said at a national summit about REO and vacant property issues.
“Rather than treating the symptom â” the high REO problem â” we need to better understand how to resolve the more general problems in communities that lead to higher concentrations of REOs and exacerbate the effects of high REOs,” said Eric Rosengren, president and CEO of the Federal Reserve Bank of Boston.
Rosenberg made his comments during a two-day Federal Reserve summit that began Tuesday in Washington.
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Thursday, September 2nd, 2010 at
4:25 pm
According to a survey conducted by the Federal National Mortgage Association a few months ago, many Americans still want to purchase their own home despite the recent downturn in the housing market. The study also showed that many consumers consider real estate as one of the safest investments.
Buying a house, however, is a big step. With the economy still in the doldrums, you have to weigh your options carefully and ensure that you’re betting your hard-earned money on the right residential property. Good thing there’s affordable bank owned real estate that you can purchase, especially if you’re on a tight budget.
You have probably heard of the words “REOs” or “bank owned homes” a couple of times but here’s a simple explanation on the nature of these affordable real estate investments.
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Thursday, September 2nd, 2010 at
12:30 pm
A common misconception that people outside of the real estate industry make believes that foreclosure and an REO purchase is the same thing. Although they are similar, they are in fact different; more precisely they are corollaries of each other, with an REO being a direct result of a failed foreclosure sale. To understand the difference between the two and how they vary from each other it is best to define what each is, and their respective merits. The term Real Estate Owned propriety is sometimes used ambiguously, but has a specific meaning in the real estate industry; a property that has been fore-closured on by a bank or Loan company and has reverted back to the ownership of the lender. So as already explained above an REO is the result of property that has been foreclosed on, and is produced only as a result of a failed foreclosure sale. Knowing that an REO is the result of a foreclosure leads us to wonder what foreclosure is, what are the benefits of buying a house that has been foreclosed on and what are the reasons why they fail to find a buyer.Under the terms of foreclosure a bank or Loan Company reposes the property due to the tenants inability to continue with payments on their loan; that they used to purchase the property the first instance. Once the foreclosure notice has been issued and foreclosure has started the bank or Loan Company legally has the right to sell the property; regardless of whether the tenants haven’t moved out yet. In order to purchase a property in a foreclosure sale there are a number of items that the bidder needs to successfully complete. Firstly the buyer has to submit a minimum bid that includes the following: The loan balance on the property, all accrued interest on the property, Attorneys fees, and all costs associated with the foreclosure process. Regardless of the above, in order to bid at foreclosure the buyer must also have a cashier’s check in hand for the full amount of the bid. If the buyers is successful then they will be offered the house in its ‘as is’ condition; complete with tenants who need evicting and liens secured on the property. Because of all the difficulties and lack of concrete benefits in buying at foreclosure, most people who want to buy a foreclosed property will go through the REO route. The REO method of purchase offers much more benefits, incentives and less stress than the foreclosure method. When a bank or Loan company takes back a property they then have the property listed as a sellable asset on their books. The role of the bank is to maximize the wealth of its shareholders. If the bank owned property in Livingston County, Michigan can be sold to release cash to invest, then this is the main motive for the bank or Loan Company; sell the property and invest the cash.
Thursday, September 2nd, 2010 at
10:32 am
What is a Foreclosure?
A home in foreclosure happens when the owner has stopped making mortgage payments and the lender has given notice that unless the payments are brought up to date, it will take back the property. Lenders can foreclose for other reasons, but the most common reason lenders file a notice of default is when a borrower is at least two – three payments behind.
If the home owner does not bring the loan current, the lender will take back the property as collateral from the owner. Once the lender has take over ownership the property now becomes a Bank REO. Banks will then list the property with an REO agent to market the home for sale. Since banks are not in the business of owing and maintianing property, it is there goal to sell as fast as possible. Search Foreclosures Here
What are REOs – Real Estate Owned?
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Thursday, September 2nd, 2010 at
4:28 am
I’ve searched yahoo answers but all I see is questions about websites. I don’t want a website because they can be inaccurate and they don’t list everything. So can someone tell me what place has foreclosure, pre-foreclosures and/or REO records for a city? I went to the court house but they didn’t know anything and gave me an auction listing instead. When I type “City Records” in a search engines I get only websites. If someone can point me in the right direction I would appreciate it. Thank you.
Related Blogs
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Tuesday, August 31st, 2010 at
11:55 pm
Chris Bowden, vice president of the Freddie Mac HomeSteps department, which manages the government sponsored enterprises’ (GSE) REO inventory, said stabilizing neighborhoods will depend on getting first-time homebuyers to buy REO.
In a features perspectives published Tuesday on the Freddie website, Bowden said Freddie’s inventory of REO has tripled over the past two years to more than 62,000 properties. The weight of these properties has had a “significant impact” on home prices in these communities, but selling to owner-occupants can reverse the damage and restore neighborhoods.
“Currently, more than two-thirds of our REO sales are to owner-occupants. Most of our marketing and sales strategies are geared toward attracting owner-occupants, and include incentives for both the real estate agents and prospective homebuyers,” Bowden writes.
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