6 Winning Ways to Get Great REO Deals
Foreclosure is a legal process where a property owner loses their right to ownership on the asset due to nonpayment of a mortgage. By the end of quarter 1 of 2017,5.5 homes were reported to be underwater,meaning the outstanding mortgages balances were more than the value of those homes. When lenders can’t sell their foreclosed properties at auctions,they turn over the homes to REO specialists who work closely with local realtors to sell the homes. Individuals who look and act on deals on foreclosed properties end up helping the distressed families who couldn’t pay as well as the lender who can’t find suitable bids at auctions. Foreclosed properties are normally great deals as they are normally sold at a big discount. You may make a small fortune if you buy such a property and flip it in future. The tips suggested here will help you as you look for good deals on REO properties.
Make sure you are dealing with the right realtor. If you don’t have your own trusted realtor,you can rely on good referrals in your social or professional networks or you may get a reliable one online on trustworthy websites.
Get the historical facts that relate to the property. Ensure your bid does not exceed the price the bank is asking for,in view of the mortgage balance,regardless of how others are bidding.
A Simple Plan: Properties
Find out the estimated value of the home you want to buy. Your trusted realtor should be able to prepare reliable comparative market analysis for you at no cost. This way,you are able to compare the current market prices they suggest against prices for similar properties in the same neighborhood.
Properties: 10 Mistakes that Most People Make
Liaise with your realtor for details on how many offers they have recorded so far. If there are no offers,a lower offer than the list price may a sensible idea. If there are many offers,offer a price that is slightly above the existing ones. If you are to be financed,and the other offers are on cash basis,simply submit a bid with an attractive price considering that lenders are likely to favor cash offers.
Try to be preapproved for finance by your bank as well as by the bank holding the title to the property,and present both to the listing agency. Offer a shorter property inspection period,be willing to split escrow or transfer fees with the REO company and do not bother them with property fixing up matters.
The right information and tricks on buying foreclosed or short sale properties will save you both valuable time and money. Take time to find a great realtor either by referral or online searching and you will most likely have dependable information on worthwhile deals.