Buying REO Property

#1 REO Home Seller in Sherburne and Cass County, Minnesota

“REO” stands for Real Estate Owned. It is a class of property owned by a lender, typically a bank, government agency, or government loan insurer due to a foreclosure. Diane Sells Leech Lakeshore and Twin Cities Homes Too! works for and represents asset managers in valuing, listing, preserving, and selling REO property and helps buyers and investors that want to purchase them. In valuing property, Diane Sells Leech Lakeshore and Twin Cities Homes Too! performs hundreds of Broker Price Opinions or BPOs, which are much like a Competitive Market Analysis or Home Market Evaluation.

Purchasing an REO is Different than Other Property

If you are looking for a home for sale in Elk River or the Sherburne County area, or Leech Lake and the Cass County area in this sellers’ market, REO, bank-owned, and foreclosure properties look very attractive. The allure is the same in any market. Find an REO property for sale that needs some sweat equity or repairs, buy at a discount, then build up equity or try to resell it.

Diane Sells Leech Lakeshore and Twin Cities Homes Too! works with both first-time buyers/investors and experienced buyers/investors that want to buy an REO home for sale in the Elk River and the Sherburne County area, Minnesota, and the Leech Lake and Cass County area. If you are new to buying REO homes for sale, there are some things you should consider. Title work and financing are a couple of things that stand out. Some REO properties require more than “sweat equity” to meet lender occupancy requirements. Conventional 20% mortgage products are not always a slam dunk after an underwriter or appraiser submits a list of required repairs to close. At Diane Sells Leech Lakeshore and Twin Cities Homes Too! we help buyers and investors navigate these issues and provide access to mortgage lenders that specialize in REO. If you are new to buying an REO property or are thinking about buying one, working with an agent or not, some things to consider are:

• What is a BPO and how do banks use them?
• REO Mortgages, what are underwriters looking at?
• Title work, who closes for the bank?
• Closing date, are you ready?

What is a BPO and how do banks use them?

REO Mortgages: QM vs non-QM

There are two basic types of mortgages, QM or qualified mortgages and non-QM or non-qualified mortgages. A Qualified Mortgage (QM) is a defined class of mortgages that meet certain borrower and lender standards outlined in the Dodd-Frank regulation. A non-QM is a type of mortgage loan that allows you to qualify based on alternative methods. Some purchasers of REO property that require repairs will use a non-QM mortgage to acquire it. After the repairs are completed, they seek to refinance with QM. Diane Sells Leech Lakeshore and Twin Cities Homes Too! can help provide access to these lenders that specialize in REO financing.

Title work, who closes for the bank?

The bank uses a specialist in REO for title work and the closing. Because a foreclosure was involved, title work needs to involve the bank and the asset manager. It is important for the buyer’s closer understands what they can and cannot do to acquire free and clear title work. Therefore, we recommend buyers and investors use the bank’s title company and for peace of mind purchase a buyer’s title insurance policy.

Closing date, are you ready?

Did you know that missing a closing date could cost you up to $200.00 a day in penalties? This language is in most REO purchase contracts. Banks are not very understanding of your personal issues. Buying an REO property is a great opportunity to purchase a property at a discount or wholesale pricing. However, those discounts have conditions. The most overlooked condition is the closing date. Diane Sells Leech Lakeshore and Twin Cities Homes Too! will constantly review and update you to ensure your REO purchase closes on time and without a penalty. For a no-obligation and hassle-free bank owned/REO buyer consultation, don’t hesitate to contact Diane today at 952-923-7280.