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New York, NY Houses For Sale. Find a Wholesale Bank-Owned REO in New York, NY:Feaured Topic: REOMany REO auction companies accept bids during the auction process only to reject it later on causing much frustration among auction bidders. 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. Conventional and FHA programs for REOs change regularly and real estate investors must stay abreast of the current loan programs. Many investors make the mistake of waiting for the television to tell them that the bottom of the real estate market is here while the REO market is providing cash flow opportunities right now. Including financing contingencies on an as is REO offer can be a deal killer. 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. When flipping REOs investors must be careful about reselling to people that can't close quickly. According to the National Association of Realtors, all but one state association's May 2009 membership totals trailed membership totals for May 2008, with 28 state associations experiencing a double-digit percentage drop in membership -- that trend has not held for all local and state Realtor associations, though. REOs with swimming pools typically have empty or half empty pools that will require repair to the plaster, tile, electrical and pump equipment. This along with a smaller buyer group, increased liability in a hold situation and higher insurance will keep many investors from bidding on pool homes It is important to understand the local economy in your area when considering cash flow over a longer period of time. Fannie Mae does not warrant or guarantee any work that may have been done on an REO property, whether as part of its efforts to sell the home or pursuant to conditions in the purchase contract REO buyers should be aware of the following basic FHA loan qualification guideline: Foreclosure's must be at least three years old, with perfect credit since. Remember that these guidelines are subject to change at anytime and you should stay abreast of current loan programs. Buyers chasing after bank repos are sadly discovering that some REO lenders will not sell a bank repo to them, and they don't know why. The truth is banks can name the terms and conditions under which they will sell a bank-owned home. If buyers don't fit those qualifications, they are out of luck. Fannie Mae and Freddie Mac have announced that they will implement a revised Home Valuation Code of Conduct effective May 1, 2009. This will have an effect on REO purchases made with loans. REO for stands for real estate owned and REO homes are houses which have been subject to foreclosure, but failed to sell at a foreclosure auction. Buying an REO property is not a simple and straightforward as some imagine. Banks may verbally accept your offer, while trying to find a better offer. The large number of investors buying and renting REOs in some areas will certainly cause a sag in market rents. This should be considered when buying an REO to hold. REO tip...When inspecting an REO, check baseboards for discoloration and other evidence of standing water such as peeling floor tiles. Real estate brokers in turn with the REO manager within the bank to negotiate through an offer. Other ways to buy foreclosures are to buy at a public auction or buying bank owned or REO properties. These properties are often priced for less than what is owed on them because the bank does not want to hang on to a bunch of properties. |
