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Utah, UT Houses For Sale. Find a Wholesale Bank-Owned REO in Utah, UT:Feaured Topic: REOLenders are selling off their Southern California foreclosures at deeply discounted prices making this a profitable time for real estate investors. 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? 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. REO agents must follow up diligently on offers made in their buyers behalf as many properties have a stack of offers submitted. A good REO purchase must be analyzed buy either current market value or long term cash flow ability. Low list price alone does not mean a great deal. Sometimes the bank simply accepts the best REO offer at inception and goes directly into escrow.. Due to high opening bid prices most homes do not sell at the trustee sale and go back to the banks, becoming REOs. When creating an REO buying team it is important to have some type of contractor resources to assist with estimating repair costs. It is important to have the help of experienced professionals when determining market rents for purpose of cash flow analysis. Fannie Mae uses a state-specific real estate purchase contract and a real estate purchase addendum for their REO properties. If there is anything in the document you don't understand or aren't comfortable with, you may want to contact a real estate attorney, the real estate sales professional who has listed the property, or any real estate professional of your choice to review these documents with you. Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through their real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the REO property. If you cannot close an REO by the predetermined closing date, the bank may charge you a penalty for each day you pass that date. 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. REO properties have some disadvantages too like, not all of are in good condition in some cases you may need to call gas, water & electric companies to get them turned on & also you will have to pay for all repairs. 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: this is an acronym for Real Estate Owned, and this used to be called the bank department that managed the properties the bank had reacquired through a foreclosure process 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. Savings of 20% to 30% off the fair market value are absolutely possible, making an REO purchase the best way to buy a property for the first time home buyer or property investor. They give prospective buyers immediate access to the property for inspection. They remove all liens and back taxes. They allow negotiation on all rehab costs, interest, closing points and loan amounts. The purchase is described as 100% risk free and they may allow a less than normal down payment. The bank will also evict the tenants if necessary. So you can see the benefits of of buying REO properties. In today's housing market the glut of foreclosures has created a rare investment opportunity for those who know what they are doing. |
