REO or real estate owned properties are those homes that are owned by the banks and the lenders after the former homeowners or property owners were unable to meet the mortgage obligations. They are comprised of residential, industrial and commercial properties. REO homes can be quite fruitful, especially for those that are first tie buyers and can be excellent investment properties also. REO deals can be done in the same way that other properties are bought. Instead of the property being in the hands of a private buyer, the properties are in the hand of the bank or the lender.
Advantages of investing in REO
Many investors are enthusiastic about purchasing properties as they are usually lower in value to comparable properties in the same area. These properties are sold on a as is where is basis. In 99% of the cases, some repair is required for the property as they can be various stages of neglect. Many of these properties could have lied vacant for longer periods of time and this can be very damaging for the property. In some cases, the property could have been vandalized or in many cases, squatters could have also taken board.
All types of properties comprise the REO properties. While there can be one room studio apartments, there are can multimillion dollar properties that are also included. The problem of foreclosure has affected all income groups across the country. Usually banks have a tendency to hold on to properties that are worth much more, in the hope that they can sell such properties at a higher price once the real estate market rebounds.
There are several programs that are available under which investors can look at the REO properties. These include Fannie Mae loan mortgage programs the Neighborhood Stabilization Program grants offered through Department of Housing and Urban Development (HUD).
Fannie Mae Homepath and its advantages
The Fannie Mae loan mortgage program known as Fannie Mae Homepath properties has many types of properties that can be purchased. The properties included those that are located in suburban and metropolitan areas. Very few properties are available in the rural areas. The type of properties that are available include single to multifamily homes, condos, mobile homes and town houses. Under this program, financing for buying the homes is also available. This is the reason that this is ideal for those that are looking to purchase the home for the first time. The program is also open to those that have a blemished credit report. The advantages of financing under the program include lower down payment requirements as well as no mortgage insurance. The program also gives more funds to that homeowner, if the property that they buy requires higher and extensive repairs. Such funding can be used by both the homeowners and those that are only investing in the homes.
The funding is limited to 35% of the completed value of the renovations done on the house or a maximum limit of $35,000.
Advantages of investing in REO
Many investors are enthusiastic about purchasing properties as they are usually lower in value to comparable properties in the same area. These properties are sold on a as is where is basis. In 99% of the cases, some repair is required for the property as they can be various stages of neglect. Many of these properties could have lied vacant for longer periods of time and this can be very damaging for the property. In some cases, the property could have been vandalized or in many cases, squatters could have also taken board.
All types of properties comprise the REO properties. While there can be one room studio apartments, there are can multimillion dollar properties that are also included. The problem of foreclosure has affected all income groups across the country. Usually banks have a tendency to hold on to properties that are worth much more, in the hope that they can sell such properties at a higher price once the real estate market rebounds.
There are several programs that are available under which investors can look at the REO properties. These include Fannie Mae loan mortgage programs the Neighborhood Stabilization Program grants offered through Department of Housing and Urban Development (HUD).
Fannie Mae Homepath and its advantages
The Fannie Mae loan mortgage program known as Fannie Mae Homepath properties has many types of properties that can be purchased. The properties included those that are located in suburban and metropolitan areas. Very few properties are available in the rural areas. The type of properties that are available include single to multifamily homes, condos, mobile homes and town houses. Under this program, financing for buying the homes is also available. This is the reason that this is ideal for those that are looking to purchase the home for the first time. The program is also open to those that have a blemished credit report. The advantages of financing under the program include lower down payment requirements as well as no mortgage insurance. The program also gives more funds to that homeowner, if the property that they buy requires higher and extensive repairs. Such funding can be used by both the homeowners and those that are only investing in the homes.
The funding is limited to 35% of the completed value of the renovations done on the house or a maximum limit of $35,000.
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