 |
 |
|
Safety Harbor Homes For Sale. Find a Wholesale Bank-Owned REO in Safety Harbor, Florida, FL:
Featured Topic: REOWhen a bank takes back a home in foreclosure, it becomes an REO and is assigned to a local agent. In an REO situation, your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies and even once an offer is accepted, the bank may insert wording like subject to corporate approval with 5 days. REO, or Real Estate Owned, is property that failed to sale at a foreclosure auction and is now owned by a bank. Monthly cash flow attained by purchasing and holding REO's can produce a substantial monthly income. In experienced REO buyers that can not follow through on their offers, make many agents leery of working with investors. Many REO investors are sitting on their hands waiting to see how government legislation will effect REO inventory in the coming months before they make any offers. If other buyers ask for 17 days on an REO, for example, to conduct inspections, and you ask for 10, you will be deemed the more serious buyer. Most successful trustee sale buyers are very experienced and have advanced research techniques. Many investors find the REO market to be a much safer environment. Dead grass and landscaping are targets for citations from code enforcement on REO held property. Budgeting for monthly maintenance issues such as gardening, is important in calculating cash flow on an REO as certain items must be maintained by the owner. Fannie Mae may make some repairs to REO homes to increase their marketability however, the buyer should be aware that other repairs may be needed. REO buyers should be aware of the following FHA loan qualification guideline: Two Years of steady employment, preferably with same employer. Remember that these guidelines are subject to change at anytime and you should stay abreast of current loan programs. Many banks are moving away from paying typical closing costs for the buyer on REO. Some fees such as transfer taxes, county and state fees, are borne by the buyer and not the bank. Banks do not often pay for pest reports, repairs or home warranty plans. Many are in fine neighborhoods and offer outstanding values. And while some REO homes do qualify as handyman specials, many are in very good condition. Usually the Bank won’t accept an offer directly from you. Banks accept offers only from a real estate agent or broker. 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. It is important to consider quality when buying an REO in this market. A quality home in a quality area in good condition will produce a higher quality renter and improve vacancy rates, cash flow and appreciation over time. This may be more costly initially and take more work to find but will pay dividends at the end of the cycle. REO tip...When comparing recent sales to your subject property, be sure to make adjustments for differences in square footage. Under the rules of foreclosure a bank or lender takes control of a property due to the inability of the borrower to make loan payments. Once the foreclosure has been initiated the bank or loan company legally has the right to sell the property regardless of whether the owners have moved out or not. The REO option offers many more benefits and less stress than the foreclosure auction. |
