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Indiana, IN Houses For Sale. Find a Wholesale Bank-Owned REO in Indiana, IN:Feaured Topic: REOWhen making an REO purchase, it is important to understand market value in your chosen area. Before making an offer on a REO, have your agent contact the the listing agent and ask the following questions: (1) Are there any inspection reports, (2) What work has the bank agreed to, (3) Is there a special "as is" form, (4) How long does it take the bank to accept an offer, and (5) How does your agent deliver the offer? A three percent down payment is required for Fannie Mae loans and REOs can be funded by the buyers savings, a grant or loan from a non profit organization. Monthly cash flow attained by purchasing and holding REO's can produce a substantial monthly income. It is important that REO buyers agents be highly available, aggressive and personable in order to develop relationships with REO listing agents. Even professional appraisers are struggling with determining property values as the REO inventory levels are skewing the current sales data. The only time the deposit check is cashed in an REO offer is when the offer has been accepted. A vacant REO only depreciates in value and is a liability on a banks ledger sheet. Many REO buyers agents are not comfortable working with investors. It is important to find an agent that is familiar with investor transactions. 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. Usually, when you buy a home, you deal with a seller who lives in the home. Fannie Mae has acquired their properties through foreclosure, deed in lieu of foreclosure, or forfeiture. There are some credit issues that REO must allow for a certain time to pass before you can qualify for a FHA loan. They are follows: Two years from the date of discharge for a Bankruptcy and Three years from the date of Foreclosure. Expect the bank to draw its own REO purchase contract or addendum to your standard purchase contract. Read it thoroughly and ask a real estate lawyer for advice if you do not understand it. REO properties have properly changed hands. All liens against the property have been addressed. Back taxes have been paid. And the title is clear. In some cases, the bank may have done necessary repairs already. You should check market prices for homes in your region and calculate the cost and repair time, before deciding that an REO property is a good deal. In their efforts to create a bidding frenzy, many REO agents will claim that they have 10, 15, 20 or more offers on a REO house when in reality their are only a few offers that the banks would consider. Don't be discouraged by this kind of talk and submit your educated offer. If you get your REO bid accepted, move quickly to get your docs signed and counter signed as the bank will still entertain offers until you are in escrow. REO tip..When inspecting an REO look underneath kitchen and bathroom sinks for evidence of water damage and mold. Extensive damage or mold can mean a costly cabinet replacement and/or mold remediation. What are the benefits of buying an REO property that has been foreclosed on and what are the reasons they failed to find a buyer? We expect REO activity to spike in the coming months as foreclosure delays and moratoria implemented by various state laws come to an end |
