Posts Tagged “REO’s”
Nov
10
2011
 
What is the difference between buying forclosures and short sales? Are short sales the same as REOs?Posted by Usual in Short Sales, tags: between, BUYING, difference, forclosures, REO's, Sales, Same, ShortIs one more beneficial or easier to buy than the other?
Oct
19
2011
Are bank owned houses REO’s and short sales asking prices negotiable?Posted by Usual in Short Sales, tags: asking, BANK, house's, negotiable, OWNED, prices, REO's, Sales, ShortI wanted to know if bank foreclosures REO’s and short sale home asking prices are negotiable? Do banks ever accept a lower offering price for property? Since REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction.
May
25
2011
Short Sales vs. REOsPosted by Usual in Lender Approved Short Sales, tags: REO's, Sales, ShortShort Sales vs. REOs Why Submit Articles? 0 && $.browser.msie ) { Register Email Home Page > Business > Short Sales vs. REOs Categories Short Sales vs. REOs By: Glenn Plantone ]]> As of September 2009, the nation’s supply of REO homes has begun to shrink, even in foreclosure capital Las Vegas, NV. As investors flood back into distressed markets, we are seeing multiple bid situations for most REO or bank-owned foreclosure properties coming back onto the market. With demand exceeding supply, it is becoming harder and harder for investors to purchase REO properties at discount prices. Also, with the Obama administration offering hefty incentives for banks to help homeowners avoid foreclosures, REOs are becoming more scarce. Instead, we are seeing short sales skyrocket in popularity as banks have suddenly become willing to negotiate this option. Many of my investor clients have asked me to explain the differences between short sales and foreclosures/REOs. First, the definition of each: A short sale occurs when a buyer negotiates with the bank to purchase a home from the seller for less than what the seller owes on the mortgage. In many cases, where the equity in the property has dropped sharply, this means that the second lien holder (if any) receives next to nothing on their note (think $1000 for a $90,000 note as an example) and the first position lender very often must still except less than the amount of the first mortgage. REOs are bank owned properties that have already completed the foreclosures process. The owner of the property, upon failing to make their mortgage payments, has been notified of their delinquency, received a notice of default and then a notice of sale. Subsequently the property has been sent to auction at the trustee sale where, in absence of a successful winning bid, it has reverted back to the bank holding the mortgage. These properties are then re-listed by the banks on the open market as REOs or Real Estate Owned meaning bank owned real estate. The major differences between the two transactions can be summed up in two categories: Differences to the Buyer and Differences to the Seller. Differences to the Buyer Difficulty of Transaction - Short sales are traditionally much more difficult to transact than purchasing an REO. Once a bank has taken possession of a foreclosed property and re-listed it as an REO, that REO property can then have offers placed upon it and the bank will respond to those offers just like any other seller. Short sales must go through a special evaluation and approval process at the bank. This process usually involves not only evaluating the fair market value of the property, but also evaluating the potential of the current owners to continue making their payments. Sometimes, a bank will offer to modify the existing loan if the sellers wish to stay in their property rather than negotiate the short sale. This can result in the property being pulled from the market altogether. Time Frame for Closing - REOs can often close in a 30 day escrow just like a normal transaction. Short sales can take months to negotiate and then might not be approved at all. Price - Because the buyer is usually not competing against other offers in a short sale situation, they can often obtain the property for less than what the same property might end up costing as an REO. Differences to the Seller Future Home Purchases - Homeowners who go through a foreclosure cannot apply for an FHA loan for 5 years after the date of foreclosure (7 years for investors), but homeowners who complete a short sale can apply for an FHA loan 2 years later. When homeowners apply for a loan through a mortgage company, they must state on the application if they have had a property foreclosed upon or given a deed in lieu of foreclosure within the last 7 years. There are currently no questions on standard mortgage applications asking whether or not a homeowner has ever completed a short sale. Credit Score - A foreclosure will typically lower a homeowner’s credit score by somewhere between 250-300 points and this decrease will last approximately 3 years. Short sales can often affect an owner’s credit by only 50 points and that decrease may sometimes be remedied in as little as 12-18 months. As the supply of REO properties continues to be tight across the country, short sales are presenting a good buying opportunity for would-be investors looking to re-enter the market. They can also provide a win-win situation for home owners looking to escape a negative equity position with less of a hit to their future purchasing potential and credit score. Glenn Plantone - About the Author: Glenn Plantone is a foreclosure and short sale expert, full time real estate investor and licensed real estate agent in Las Vegas, NV. He has appeared on several radio and television shows and in print discussing real estate trends and opportunities. 702-938-8888 or gsplantone@gmail.com Source: http://www.articlesbase.com/business-articles/short-sales-vs-reos-1446966.html ]]> Increase your traffic today just by submitting articles with us, click here to get started. Liked this article? Click here to publish it on your website or blog, it’s free and easy! Rate this Article vote(s) 0) { Article Tags: Latest Business Articles Reverse Lookup Phone Number Facility Is A Boon We should all be grateful to Abraham Bell for inventing the telephone which has revolutionized communication facilities to such an extent that the world has shrunk in size but sometimes persistent and annoying prank calls on your cell phone can be very irritating. By: Walker Wild Business Today’s Working Woman‘s Wardrobe: Do You Still Say Yes To The Dress? Mary Tyler Moore was a great role model for independent working women asserting themselves in the workplace and staying true to themselves in the process. Talk about influence. Oh, and didn’t she look fab in a pantsuit?! By: Karen Keller Business Emini futures deals stimulate immense excitement. Still it is important to engage in a few classes before beginning the trade. With the course one would understand their natural flaws together with knowing their ability to tolerate losses. 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As a result, September saw the first median home price increase in Las Vegas in over two years. The best place to acquire low priced investment properties is the trustee’s sale…where prices are discounted 20% off already low REO retail values. By: Glenn Plantone Business Time for seeking REO’s is being eclipsed by the increasing benefits and inventory of short sales in Las Vegas. By: Glenn Plantone Business Shrinking Inventory Necessitates New Buying Strategies Shrinking inventory of bank owned REO properties in the Las Vegas real estate market is creating bidding wars that are making it difficult for investors and owner occupants to purchase properties. Savvy home buyers are having to look to alternate methods, such as the trustee sale, to acquire wholesale properties. By: Glenn Plantone Business Comments on this article [0] Related Videos Ask a question Ask our experts your Business related questions here… 200 Characters left Related Questions I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me ]]> Need Help? Site Links Webmasters Business Info Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Mar
27
2011
How To Buy Foreclosures Short Sales and REO’sPosted by Usual in Short Sales, tags: foreclosures, REO's, Sales, ShortThe Community, designed for investors like you, allows for live interaction. Share questions and success with others. The Community provides the best Videos and eBooks available on how to invest in foreclosures, Reos and short sales
Dec
26
2010
Bank Owned Houses (REO’s) - Do’s and Dont’sPosted by Usual in Bank Owned REO, tags: BANK, Do's, Dont's, house's, OWNED, REO's
Aug
10
2010
San Diego REO’s - Carmel Valley ForeclosurePosted by Usual in Bank Owned REO, tags: Carmel, Diego, Foreclosure, REO's, Valley
Jun
20
2010
Las Vegas “Bank Owned” “REO’s” “Distressed Properties”Posted by Usual in Bank Owned REO, tags: BANK, Distressed, OWNED, Properties, REO's, Vegas |
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