Every hear of the term “REO”? This is more commonly known as a bank owned home or property for sale…..here are some interesting things to know when looking for a REO property.
Real estate owned
After an unsuccessful auction, the bank will go through the process of trying to sell the property on its own. It will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a Realtor. Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, real estate investors will often go after these properties as banks are not in the business of owning homes and so, in some cases, the low price can more than compensate for the condition of the property.
Once a property is REO, the bank or lender will try to get rid of the property by either selling it directly themselves or thru an established broker. At one time, many larger banks such as Bank of America and Wells Fargo had REO/asset management departments that will field bids and offers, oversee upkeep and handle sales.
Now with the huge amount of inventory we are finding that bank owned homes are now being listed with Realtors and advertised in the MLS.
More good news for buyers of REO properties.
Hi Michelle and Rae-
Here is the information that I have received so far regarding Prospect mortgage being a servicer of Fannie Mae
Prospect has been one of the three lenders selected nationally for the FNMA REO program, to roll on 11/15/08. It is a 3% down, no Mortgage Insurance, no appraisal program at a discounted rate.
Also we are the preferred lender on all Indymac owned properties: If your buyer uses Prospect for their loan, Indymac will pay 6% towards buyers closing costs and pre-paids.
We are still waiting for final details regarding this program and will post another article as soon as the information is released.
If you are considering investing in bank owned properties and would like to search homes for sale in the Tampa Bay Area you can do so by visiting our Real Estate Website at www.tampabaydwellings.com Save properties, search by map area and look up what homes have sold for.
For homes for sale by Indymac please feel free to email us at: [email protected] or call 813 784 7744