Foreclosures, Bank Owned Properties And REO’S
What Is A Foreclosure or bank owned property?
A foreclosure is a property that a previous owner has defaulted on and was returned back to the bank. This is a property that went to auction after default and did not sell, the bank then turns the property over to the real estate market at a competitive price. Most bank owned properties have no known disclosures, it is very important to due diligence and get inspections so you know exactly what you are getting into as the bank has no idea what they are selling, so they list the properties AS IS. There have been cases where due to properties be unable to loan on that the banks fix major repairs in order for a property to finance, Some properties are strictly listed as Cash Only Sales.
- An Reo stands for real estate owned.
- Please refer to the short sale page. Here I have compiled a lot of information and resources about short sales.
- This is not the case, buying a foreclosure is offering to purchase from the bank, the bank owns the property. Getting a response may take a few days, most listings ask for at least 3 days for a response to offers. It is imperative that if you decide to purchase a foreclosure or any home that you have a pre approval, or proof of funds, along with earnest money – if you do not have this the bank will NOT look at your offer.
- As with all buyers – you must be able to provide a pre approval from your lender, or proof of funds showing you have the funds to buy. You will also need earnest money, this is usually 1% of the sales price of the home and due upon an accepted offer. Some banks require more earnest money if this is a cash sale. All earnest money goes toward the purchase price of the home. Also be aware of closing costs. Closing costs are separate from earnest money and usually run about 3.5% of the sales amount, when you have a home in mind your lender should be able to give you an estimate of closing and prepaids that will be due at closing – This estimate includes taxes, private mortgage insurance, lender processing, credit reports, any title and escrow settlement fee to record title, and credits to the buyer and/or seller. Your Agent will be able to help you negotiate these in your offer, although it is always recommended to have some funds available should closing or prepaids change at closing – this occurs due to proration of taxes and rates per day to the closing date. The seller may even decide they will not negotiate the whole amount.
There are many reasons to buy a foreclosure or certain type of property depending on what your goals are. Some may want a bigger better home for less money, some may want to buy a fixer at next to nothing, some can in vision future gains.
What Should I know About Buying A Foreclosed Property?
- Just because it’s a foreclosure does not make it a good deal. Each property has a different scenario.
How Do I Get A Free Foreclosure List?
- All you have to do is sign up for a free list, Because there are so many properties on market I ask that in the comment section you let me know a price range, property type, goal and if you are already pre approved and/or have proof of funds or would like more info on lenders. If you ever have a question about any of the properties sent to you, or real estate questions in general – Just ask, I am here to help.
I Heard You Can Make A Lot Of Money Buying And Selling Foreclosures?
- Doing so is not for newbie’s unless you have the skills, money and know how – THERE IS NO TRUTH IN THESE LATE NIGHT PROGRAMS AND BOOKS WITHOUT THE KNOWLEDGE AND EXPERTISE DOING THIS, Times and laws Change.
I have worked with many types of investors, And a handful whom just called themselves investors, if you are an aspiring Investors – please call me I would love to sit down and share my expertise – you may possibly walk away in a brighter direction for future profits and I wont even charge you. It Can Be Very Profitable….
I work with many investors who do, do this and are very profitable These investors work with me because I am experienced and knowledgeable – I know the market and can see profitable buys. Buying a foreclosure or any property that you want to turn for profit relies on timing and knowledge. These days if you get a loan on a foreclosure, the lender requires you live in the property for up to a year, making money means you must have money and means to pull this off. I have sold foreclosures and bank owned properties to first time buyers as well – This is a great buy for a first home in need of some to little work. There are some properties priced so competitively, that you are getting a grander home then you would normally be able to afford. In some markets and with some buys its still possible to find yourself with a purchase that came with equity for the area market.
What Is A REO?
What If I am Heading Toward Foreclosure?
I Heard Foreclosures And Bank Owned Properties Are Hard To Buy?
What Do I Need To Do To Buy A Foreclosure or Bank Owned Property?
Why Would I Want A Foreclosed Property?
JUST A NOTE:
If you really want to purchase whether a Foreclosure, Bank Owned, REO, Short Sale or Fair Market Home – You need to be a ready, and willing buyer as these properties come as fast as they go. There have been many times where buyers decide to wait and see if anything happens and when they are finally ready the property has 5 other offers, in this case scenario we can always write another offer on another property or wait inline, the later really doesn’t get you any where.
I am unable to give legal advice and I always recommend That if you have legal question to seek the advice of an attorney.