REO foreclosure properties?
Question:
I'm looking for a new creative real estate investment strategy. I was thinking of trying REO or bank owned foreclosure properties. Can I get a good deal from these types of properties, say at least 20% off market value? If I pay the "repo amount" is that the only costs involved; will I own the property free and clear? Thanks
Answer:
different banks offer repo homes different ways. some list with realtors. some auction the properties. i've gotten a few great buys and turned nice profits. bought one in the inner city for four thousand dollars that only needed paint, carpet and a few windows. sold it in less than a month for fifty thousand. bought a 3,000 sq ft castle for 35,000. you have to know the market where the home is located. it doesn't hurt to have a good lawyer look over any real estate transaction to make sure you property comes with a clear title with no liens.
As a real estate broker I have dealt with REO's, both in BPO's and selling.
There are 2 ways to purchase an REO. first, go to the courthouse steps and purchase the property that day. This could be the most expensive way. first, you don't know how much is owed against it (unless you've done your research and asked the foreclosee, neighbors, or know it alls how much is owed). If a bid is received once the trustee starts, the bank will outbid up to the amount owed. If there is not that much owed and you think the market value is more than the auction price, than you can purchase. Sometimes a second mortgage will be forgiven, but you will still be liable for other leins (tax, mechanical, judgements, etc. to have an unclouded title.
The second way to purchase an REO is to search websites set up by asset management companies to sell the foreclosures that no one purchased at the court house steps. Here are 2 websites: www.pasreo.com , www.iasreo.com . The longer the property goes unsold, the more likely a bank is to accept a lesser offer or reduce the price. If it has not sold with in a year, it goes to final auction through one of the large auction companies (Hudson Marshall, Williams & Williams, etc). You can pick up some 'deals' on properties-most of the time they need updates-I've seen the owners damage the property before it goes back to the bank (removing toilets, sinks, a/c, water heaters, built in appliances, put holes in walls-you get the idea).
You can check the newspapers and try to purchase these homes from the mortgator before they go to auction. You will have to contact the owner, find out what they owe, offer to buy it for what is owed and give them some kind of small compensation (moving expenses and some pocket change).
There are government foreclosures, also. Don't just limit yourself to bank foreclosures.
Good Luck. For more FREE info, you can go to my website and e-mail me. I'd be happy to help you.
You can absolutely find good deals, but you must do your homework. You must look at dozens of properties to find the good ones. Most REO banks clear up the liens and sell the property free and clear. The price is the asking price, and they may sell for more or less. Try http://www.emailforeclosures.com... for a totally free search of REO's.
You need to head over to http://www.realestatefundingnetwork.com... and speak with Frank. Fill out the form for the free report and then call him at either 866-728-8587 or 919-373-4120. He is an expert in REOs with 30 years experience. He helped me tremedously
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