| Q: |
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What does "REO" mean? |
| A: |
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Real Estate Owned. It's the term the banks use to identify their foreclosure
properties. |
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| Q: |
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How is a HUD property different from any other
foreclosure? |
| A: |
|
HUD homes are FHA-insured loan foreclosures. The government owns them. The
properties are classified as "insured" or "uninsured". Those
that are insured are in good repair and FHA will insure a new loan for a new
buyer for the home. Uninsured properties are typically fixer-uppers, and the
buyer will be responsible for his or her own financing. Find out more on
their website at www.hud.gov |
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| Q: |
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How are foreclosure properties identified on the MLS? |
| A: |
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Unfortunately, they are not. They are listed just like any other property. The
best way to find them is by working with a real estate broker who specializes in
this kind of home, or by searching the web.
Search through our foreclosure
properties for sale. |
| |
| Q: |
|
Doesn't the amount owed on the property determine what
the bank will sell it for? Won't the banks sell them for less? |
| A: |
|
Not really. When negotiating with an asset manager at a bank for the purchase of
a foreclosure, keep in mind that this is a professional seller. A good
asset manager will work hard before a property is ever listed to determine fair
market value. They order appraisals and hire a broker to advise them about the
property's condition and value. Then, they price them accordingly. Often the
amount owed on the property is actually far greater that its worth - which was
likely cause of the foreclosure in the first place. |
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| Q: |
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Will the banks repair the properties that are
distressed? |
| A: |
|
Sometimes. The asset manger in charge of the property will confer with his
broker prior to listing it to determine if it is a good candidate for repair or
rehab. He will then proceed with a marketing strategy - either "as-is"
or "repaired". The as-is properties are priced much lower, and the
bank typically does not make repairs for these. They feel any repairs should
be the responsibility of the buyer since the property's price is already
discounted. |
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| Q: |
|
What are some general guidelines for your market? |
| A: |
|
Many of the properties that we list require an earnest money deposit of
$1000 and are sold "as is". Many REO properties will sell for cash.
We have experience selling REO properties with all types of financing including
FHA, VA, and conventional financing. One should remember that many times an
REO property will be in a somewhat distressed condition due to the former
owner's financial position before the foreclosure took place. We
have sold REO properties in a list price range from: $4500 to $330,000+.
The foeclosure market has a wide range of properties to choose from. |
