What to Do When You Want to Get Amazing REO deals Foreclosures are for the most part a sad affair. By the end of quarter 1 of 2017,5.5 homes were reported to be underwater,meaning the outstanding mortgages balances were more than the value of those homes. When lenders can’t sell their foreclosed properties at auctions,they turn over the homes to REO specialists who work closely with local realtors to sell the homes. Individuals who look and act on deals on foreclosed properties end up helping the distressed families who couldn’t pay as well as the lender who can’t find suitable bids at auctions. Foreclosed properties are normally great deals as they are normally sold at a big discount. It is highly likely that you will make a gain if you buy such a property and sell it when the price goes up. The tips suggested here will help you as you look for good deals on REO properties. Make sure you are dealing with the right realtor. You probably have your own real estate expert with whom you have a good relationship or you can search the internet for referrals. Ensure you take a look at the original deed to the foreclosed property. Take note of the original loan balance and compare this to the listed price,ensuring that your bid falls between the balance and the quoted price.
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Assess the value of the particular home you are interested in. Your trusted realtor should be able to prepare reliable comparative market analysis for you at no cost. The report from your broker will greatly help you figure out if the current price for the home is a highly discounted one when compared to the average market prices for properties matching the one you want in size and location in the same area.
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Liaise with your realtor for details on how many offers they have recorded so far. Offer an offer lower than the list price if the realtor has received no offers so far. Make sure your offer is above the highest offer by a certain amount. If you are to be financed,and the other offers are on cash basis,simply submit a bid with an attractive price considering that lenders are likely to favor cash offers. Try to be preapproved for finance by your bank as well as by the bank holding the title to the property,and present both to the listing agency. Suggest to share transfer and escrow fees with the selling lender,ask for a shorter period for property inspection and certain do not ask for repairs,and most REO banks will favorably consider your bid. The right information regarding shortsales and foreclosure properties will help you land great real estate deals,especially when you are working with a great realtor. Seasoned real estate investors create good rapport with their realtors and are usually the first ones to be notified of any hot deals.

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