Re: REO listings
Posted by Julio Martinez-Clark on March 21, 2008 at 14:33:59:
In Reply to: REO listings
Posted by Tim on March 21, 2008 at 14:19:28:
Tim,
This thread will generally answer your question and will provide
additional information on REOs: www.all-
foreclosure.com/forums/foreclosures/messages/6730.html
I wrote the following on an article on my blog titled "Investing In
Residential Real Estate: What the media or the gurus won't tell you"
"Buying REO (Real Estate Owned by banks):
This includes government agency foreclosed homes, including property
owned by HUD, VA, Fannie Mae and Freddie Mac; asset managers, who
will usually have foreclosed homes listed from different lenders; and
listings provided directly by the banks or institutions owning the
property. In my experience, it's very unlikely that you will find a super
great deal buying this type of homes. The above mentioned institutions
make the process very user unfriendly with complex and you-lose-I-win
contracts; furthermore, they price their homes at fair market value or
close to it. Most of these homes are listed with a real estate agent and you
can find them in MLS or at Realtor.com. These institutions have gotten
these properties back after foreclosing on them and it makes business
sense for them to sell them at the highest price the market can bear so
that they can recoup their investments (loans to homeowners) plus legal
fees, carrying costs, etc. Most of the time, the employees at these
institutions handling the sale of these homes are compensated with
bonuses based on how high they sell them. There is a sub-industry in
this category; some of the above mentioned institutions package their
most undesirable homes (usually in very bad areas) and sell them to
bulk/wholesale buyers in (minimum packages of about $5M-$10M each)
who most of the time are individuals or companies with access to large
amounts of capital, who in turn, with little renovations on the homes, sell
them to end-buyers (many are minorities with little access to credit) with
easy and sometimes deceptive terms involving seller financing."
I hope this helps,
Julio Martinez-Clark
Follow Ups:
- Re: REO listings - steele in minnesota 15:14:37 03/21/08
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