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Ben Hill County, Georgia Homes For Sale. Find a Wholesale Bank-Owned REO in Ben Hill County, Georgia, GA:
Featured Topic: REOReal estate investors are able to buy lender owned REO homes in Southern California for fifty cents on the dollar or better and rent them out for a positive cash flow. Banks do not want to see a lot of proprietary disclosures with REOs; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14) and if there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements. FHA financing is available for REO homes but generally will require the property to be in decent condition. Buying renting and holding a Southern California REO rental home can create a monthly cash flow and future equity appreciation as we are in a historically low period in the real estate market. It is important that REO buyers have a realistic idea of what repairs will cost on the houses they offer on. Buying well researched and identified cash flow REO homes now will create a solid portfolio that will provide great cash flow and equity appreciation in the future. The use of weasel clauses in an REO purchase shows a lack of confidence on the buyers part and should be avoided when making REO offers. A vacant REO only depreciates in value and is a liability on a banks ledger sheet. An REO investor must take care to properly evaluate the condition of a listing and compare that with the standard of the active, pending and sold comparable homes in the area. Many REO properties with low price tags contain surprises in repair costs that can wipe out profit margins.It is important to have a professional opinion of cost for these repairs to ensure a safe purchase. You should also consider hiring a qualified professional to inspect an REO property, whether it has been repaired or not. Hiring a home inspector is a recommended practice, no matter what type of home you buy. If an REO buyer has a Federal Tax Lien that is in a repayment agreement, you do not have to pay it off in full but you must be able to qualify with the monthly payment of the repayment agreement. State Tax Liens typically must be paid in full prior to closing your FHA loan on an REO. 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. Banks may require a cash REO buyer to show proof of funds. This rules out obtaining a refinance on a residence unless the money is already in the bank. If you need a loan get your loan application not only pre-approval or pre-qualified but underwritten also. In a market with so much inventory it is important to select an REO by area, condition and characteristics. This will be a desirable and marketable home when the market recovers. It is good to see a neighborhood at different times of of day. A quiet street at noon can be a war zone at night. This reality will be encountered by your renter and can affect rent amount and vacancy rates. REO tip..to help project the health of an area, pull the NOD and foreclosure data within a 1 or 2 mile radius. This should help you determine what the area will look like over a to 12 month period. Areas with a high level of foreclosure activity will have a longer road to recovery. 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. We expect REO activity to spike in the coming months as foreclosure delays and moratoria implemented by various state laws come to an end |
