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Piscataquis County, Maine Homes For Sale. Find a Wholesale Bank-Owned REO in Piscataquis County, Maine, ME:Featured Topic: REOWhen a bank takes back a home in foreclosure, it becomes an REO and is assigned to a local agent. Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. FHA regulations concerning the condition of a property have changed dramatically over the past three years making it easier for investors to obtain financing on an REO. Positve cash flow is attained when the monthly collected rent minus expense exceeds the mortgage payment. It is best to eliminate most contingencies on offers made on REO purchases. It is important when buying cash flow REO's to take the point of view of the end user buyer or renter to end up with a home that has long term desirability. Investor sshould exercise caution and avoid overestimating the value of an REO property. Sometimes an REO listing agent will offer cash for keys to entice the ex homeowner to leave the REO property. Repeat vandalism may cause a bank to lower price on an REO listing. It also may be a caution to the investor about the neighborhood. Local unemployment stats should be factored in when determining cash flow on an REO property. 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. Some REO listing agents are so busy that they hire assistants to field calls. Many do not give out their private cell phone number, which can make communication difficult. Many prefer to use email. The bank may ask for you to submit a loan application so it can prequalify you for an REO, however, you are not obligated to obtain your loan from that bank. If the bank REO does not appraise for the purchase price and the buyer is obtaining a loan that requires a 20% down payment or less, the buyer's lender will not fund unless the buyer coughs up more cash or the REO lender discounts the price. Cash buyers don't make offers contingent on an appraisal. Usually the Bank won’t accept an offer directly from you. Banks accept offers only from a real estate agent or broker. 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. When looking for the cheapest REOs, an investor should go out and really see the areas and inventory. Usually there is a reason for the low pricing. That does not mean that there are not super deals but the listing agents are pricing according to area, desirability and condition. They are looking to dump the house quick and you don't want a lemon REO. 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. Buying a bank-owned or REO property may take an equal amount of time and angst, but the property will be vacant and easier to inspect. The REO option offers many more benefits and less stress than the foreclosure auction. |
