BANK OWNED PROPERTIES Q&A
Q. What is a bank owned property or REO? More commonly referred to as a FORECLOSURE
A. It is NOT a short sale. The bank has already foreclosed on the property. The bank is the seller/owner.
Q. How do I make an offer?
A. Through a Real Estate Agent. You will need proof of funds or preapproval. If a specific bank’s preapproval is required, please contact bank immediately.
Q. Will banks pay for buyer closing costs?
A. Many will, however, in many cases there are competing offers. Keep that in mind when presenting your offer.
Q. Are there seller disclosures?
A. No. Once bank accepts the offer they will prepare bank addendums. Typically you have 24-48 hours to review addendums and accept the terms of the addendums. As with all addendums, they will supersede the state contract.
Q. What does highest and best offer mean?
A. When there multiple offers presented to the bank the bank will ask you to reconsider your offer and present your highest and best offer. The bank solely decides whose offer they would like to accept.
Q How long does it take for the bank to respond to our offer?
A. Usually between 24-72 hours however that does not include weekends.
Q. How long does it take to get my contract and addendums signed?
A. This varies dramatically from bank to bank…from 2 days to 2 weeks.
Q. How long does it take to close on a bank owned property?
A. Between 30-45 days if financing and 20–30 days if purchasing cash.
Q. Will the bank provide the HOA/Condo Docs to the buyer?
A. No, the buyer is responsible for all obtaining all docs and should be noted on the contract.
Q. Will the bank provide clear title?
A. Buyer will receive clear title and bank will pay off any current liens or assessments.
Q. Will I get keys and garage remotes?
A. You will get keys to property, however, it is strongly recommended that you rekey locks. Banks use master keys and many individuals have access to bank owned properties.
Please call me at 813 784 7744 to learn more about how to find these properties, make offers and the purchase process.
Rae, Catanese- Real Estate Agent
Last week, RealtyTrac reported no real letdown in the endless bad news on foreclosure filings. August foreclosure filings were reported on 358,471 U.S. properties, a slight decline of one percent from July but 18 percent over August 2008. We’re on track for a 4 million foreclosure year. Last year, foreclosure filings were reported on 2,330,483 U.S. properties, an 81 percent increase in total properties from 2007 and a 225 percent increase in total properties from 2006.At the current rate reported by RealtyTrac, we can expect 12 million total new foreclosures through 2012, 30 percent more than the most optimistic number of homeowners targeted by the government’s efforts.
The Tampa Bay area has been #2 in the U.S. for foreclosure filings since last year
Search all homes, condos, and lofts for sale in the Tampa, St. Petersburg, Clearwater areas. Visit our Real Estate Website.
Questions?: realtyrae@yahoo.com
There is no official news that the tax credit will be extended past the Dec 1st deadline. Realtors are campaigning to ask Congress to extend the credit for one year.
As a Realtor, I can assure you that the $8,000 first-time homebuyer tax credit has definitely been a success. Homebuyer interest and housing sales increased almost as soon as the ink was dry on the tax credit legislation. Today’s lower prices and interest rates appeal to consumers, but it’s been the tax credit that has attracted people to open houses and to homeownership.
That progress could grind to a halt sooner than you think. Congress must act NOW to extend the credit through 2010. Otherwise, uncertainty will return and the market might again be frozen — possibly as soon as October.
A homebuyer is eligible for the tax credit only if the home is “purchased” before December 1, 2009. That means that buyers have to find a house, complete a contract, satisfy any contingencies, secure financing and go to closing by November 30. Accomplishing those tasks by November 30 will become more difficult with every passing day. In today’s market, it generally takes between 45 and 60 days to go from contract to closing.
The market has improved, but it has not yet fully corrected itself. The credit needs to be extended for an additional period of time and expanded in order to build upon the progress that’s been made. Uncertainty about the future of the credit will dampen consumer demand. The best way to assure continued housing activity is to extend and expand the credit and to do that NOW.
Questions? email me: realtyrae@yahoo.com
Rae Catanese
Fannie Mae is rolling out new lending guidelines Tuesday, September 1, 2009.
Being approved for a home loan could be much more difficult. The new rules mark the first major underwriting update since April of this year. The changes are mostly geared at fraud prevention.
Among the updates:
- Stock options are no longer eligible for “reserves”
- Relocating families can’t use the “trailing” spouse’s projected income
- “Tip” income must be documented and verified
- Lenders must call employers to verify employment
- Lenders must verify tax transcripts against IRS records
But there are other changes, too. As examples:
- Owners and buyers of 2-unit homes are subject to new minimum FICOs with larger downpayment and equity requirements.
- Only 70% of stock, bond and mutual values may be used as reserves
- Only 60% of retirement assets may be used as reserves
Not everyone that qualifies for a mortgage on
Monday, August 31 will qualify on Tuesday, September 1.
Read the complete Fannie Mae announcement online.
Please call me with any questions 813 784 7744
I just received this and thought I’d share it with you regarding financing FHA approved condos in the Tampa Bay area.
Major changes to Condo Approvals
As of October 1, 2009 ALL FHA condo approvals will be GONE. We will be starting from scratch with NO approved projects untill Lenders start submitting approval packages to HUD. It is imperative that realtors understand the need to move listed condos NOW and not to wait. We also need to advise the sellers that the FHA loans on the condos will come to a sreeching halt for a period of time. Buyers needed to move on the condo ASAP. Who knows when the project will get on the approval list. If the project was approved after October 1 2008 the approval will be valid for FHA loans.
Please relay that to the buyer or loan officer so that they understand we might be in for some serious delays if they have to go and approve the building again….
If you are looking to buy a condo in Tampa Bay, and need to use FHA financing I have a list of approved buildings. Email me realtyrae@yahoo.com, or call me 813 784 7744
Thanks!
Rae
