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South Carolina, SC Houses For Sale. Find a Wholesale Bank-Owned REO in South Carolina, SC:Feaured Topic: REOWhen making an REO purchase, it is important to understand market value in your chosen area. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. REO, or Real Estate Owned, is property that failed to sale at a foreclosure auction and is now owned by a bank. 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. It is critical for REO buyers to communicate competence, integrity and ability to close escrow to the listing REO agent. Many REO investors are sitting on their hands waiting to see how government legislation will effect REO inventory in the coming months before they make any offers. 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. REO vs Short Sale. The bank will list its REO property with a real estate agent who is much more likely to understand market value than a banks loss mitigation department in a short sale. 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. It is important to have the help of experienced professionals when determining market rents for purpose of cash flow analysis. HomePath Mortgage Financing is available on Fannie Mae homes and a down payment of 3 percent can be funded by your own savings, a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer. REO buyers, don't rule yourself out of qualifying for FHA loan to buy a home or refinance your existing mortgage because of credit issues until a mortgage professional has reviewed your credit. 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. It is the best time to invest in REO or real estate which will give you a higher return when the market condition steadies or improves. Before starting the process of buying REO Homes, you need to understand what is involved. In their haste to get the cheapest houses, many investors end up with undesirable REOs that need profit killing repairs. An REO hold buyer should be familiar with the local municipality and their code enforcement policies. Many cities are hurting for money and have taken aim and bank and investor owned REO properties to generate revenue. REO tip....take extra care to estimate repair costs on the lower priced inventory. There is usually a reason for the low list price and many times it is a costly or loan killing defect. There are three phases of a foreclosure; pre-foreclosure/short sale, auction, and REO (real estate owned) REOs are properties that the lender has failed to sell at auction. At this point, since the home has gone back to the lender, the mortgage no longer exists. |
