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Kansas, KS Houses For Sale. Find a Wholesale Bank-Owned REO in Kansas, KS:Feaured Topic: REOThe prices on current REO inventory are well below building cost and make incredible buy and rent opportunities. Your offer in an REO situation should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct. FNMA is offering special financing on their REO inventory properties. The benefits of Fannie Mae Home Path Special financing include low down payment and flexible mortgage terms. A great way to buy and keep an REO home in Southern California is to rent it out during the downturn and let the renter make your mortgage payment. If care is taken in the analysis of these purchases, a great profit can be realized in monthly cash flow and equity growth over time. Currently, many wholesale REO's in Southern California are being tied up under contract within a few days of being listed. Many novice investors do not consider the quality of the area they are buying in because they are fixated on buying the cheapest house they can find. 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 property that is still in foreclosure does not yet belong to the bank and the homeowner must be engaged. An REO purchase does not involve the homeowner. Home prices are at their most affordable in many years, which has opened up home ownership to many who had been locked out during the housing boom. And now, the federal government and many states are launching plans to hook up buyers of REO homes with very attractive terms. It is important to understand the standard amenities of homes in an area before determining rehab costs on a cash flow rental home. Home Path Renovation Mortgage Financing is special financing on Fannie Mae homes and is available from several lenders. REO buyers should be aware of the following FHA loan qualification guideline: Bankruptcy's must be at least two years old, with perfect credit since discharge. Remember that these guidelines are subject to change at anytime and you should stay abreast of current loan programs. REO listing agents make money by either selling a lot of REOs or operating as a dual agent. Under dual agency, the REO listing agent will earn both the listing commission and the buyer's agent's commission. Buyers with all cash are REO lenders' favorite purchasers. A list-price all-cash offer will beat out a conventional offer, even if the conventional offer is above list price. If the listing's conditions state "cash buyers only," it is unlikely the bank will consider an offer from any buyer who is relying on financing. Many investors shy away from REO properties or HUD homes because they feel they have less negotiating power or simply lack the capital to make aggressive offers and play along with the rules that REO lenders stipulate. 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. 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, check baseboards for discoloration and other evidence of standing water such as peeling floor tiles. 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. 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 foreclosure auction is different than an REO property. |
