Most buyers go through an agent or mls listings to buy houses, but YOU can go for the smart route and go directly to the Real Estate Owned properties. The REO is a failed foreclosure auction sale which goes back to the ownership of the lender. Most of the time the REO will be looking for a quick sale which can be a savings of 20%-30% off the original value! Remember all the back taxes and liens are removed from the sale. The interest rates, loan amts, rehab costs are all negotiable.
The lender will evict the tenant or owner and usually will not make any repairs. The reason I mention this is buyer beware! Please be careful to do your due-diligence and higher an inspector to make sure there aren't any major hidden repairs needed with the house. It's always a good idea to find out the comps so you will have a good idea what the market value would be within that certain area. When it's time to make the official offer to the lender, make it contingent upon any repairs needed that may affect the value of the house.
Statistics show that when it comes time to buy a home that is foreclosed on, REO purchases are the most popular because of the following reasons: · No risk to the buyer · No tenants to evict · Bank is motivated to sell quickly · Low down payment
Remember most banks are publicly held companies with share-holders driving the decisions. High profitability and low expenses are what motivates these banks to keep the share-holders happy. The more homes on the bank's balance sheet, higher the liabilities, and the more motivation the bank has to unload the foreclosed home at a very high discount price. A couple more tips: Don't hesitate to ask the lender if they have financing available for the specific property- they may make extra concessions! Good Buying,
Don Miller http:/www.foreclosuremoneycoach.com
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