Buying property in a foreclosure auction – made popular by the media and tons of TV ads – is very challenging for a first time buyer. Property bought in foreclosure auction has several disadvantages,
Buyer must provide a cashier’s check for the full amount. In some states you have 30 days to pay – not a lot of time to find a lender and secure a loan.
You buy the property AS IS.
May have to evict the owner – NO the lender is not required to evict prior to the auction!
Buyer can NOT negotiate on rehab costs, interest, closing points and loan amount.
Lenders often set the initial bid too high in order to recover costs and loans.
You may end of paying too much in an auction due to aggressive bidding.
So REOs are property that went into foreclosure auction, did not find a buyer and is now back in the hands of the lender. Why purchase REOs?
Lender’s want a quick sale (these properties have generated NO income for 9-12 months as a result of the foreclosure process)
Possible savings of 20%-30% over market value
Good for 1st time homeowners and new investors
All Liens and back taxes are removed
Property is available free and clear of liens, ready for immediate possession
You can negotiate rehab costs, interest, closing costs
Smaller down payment and almost 100% risk free.
In the current market condition lenders have large department specializing in REOs. How do you access them, which websites (free access) specializes on REO.
To find out more and pick up tons of information on Foreclosure investing, how, where, when, private financiers you can work with in all 50 states go to,
www.foreclosurehelpjaima.com
