The REO Specialist (REOS)
Working With Buyers
Hank Bailey, Associate Broker of Prudential Georgia Realty, works with Buyer(s) interested in purchasing a Short Sale or REO property. These property purchases are different from working with a local private seller. You will need to know or have working for you the experience to negotiate directly with employees that represent the bank, lender, or an outsourced asset management company. These negotiators primary mission is to obtain the highest net return in the shortest amount of time in a sale transaction. Each lender will have specific policies, stipulations, procedures, addendums, and a specific timeline performance to complete a sales transaction on their property. These instructions vary in the this arena. Buyers must read, understand, and agree to these various stipulations prior to submitting an offer.
Financing Your REO Property
It is a great day to buy! Interest rates are below 5% and there is great selection of inventory and sellers are willing to roll out the carpet in the form of buyer concessions to entice you as a Buyer to visit their properties. Many changes in the mortgage arena have happened since January 2010. Financing an REO "as is" property today can be challenging. Do you know the new laws, regulations, qualifications and various "buy and repair" finance programs to purchase an REO home that needs "TLC" or maybe the heating and AC unit is missing plus lender required repairs for financing.
· Bloomberg - 2,264,194 foreclosure filings since January 09
· By mid 2010, loans in foreclosure will reach 3.2% and delinquencies will rise to 8.0%.
· Fitch Ratings determined $134 billion of loans which will recast in 2011. This “payment shock” a hike often 63% higher than the minimum payment, indicates a greater risk of default.
· Over 94 FDIC Mortgage Company failures this year
· Over 30 million Americans are out of work today – 19% of the overall work force
· 9.9% Unemployment rate highest 1983
· Over 6.88 million are collecting unemployment
· Over 4,000 bankruptcy filings per day across the nation
· Over 50% of real estate transactions in the first quarter of 2010 were Short Sales and REOs