May 8th, 2013 By H&H Real Estate Media in Blogs.
Last week we began our brief discusion on the REO market and how to find and buy distressed property. To sum out last week — NO you do not have to pay those pay sites to find foreclosure deals!
This week lets talk about actually purchasing these properties. There are basically 2 ways to purchase 1) CASH – which is always the best and easiest way and 2) FINANCING – which is for the remaining 99.5% of us out there. When purchasing using financing options (VA, FHA, or conventional) it is important to know which way you want to go when you are picking out a property. Many properties that may go conventional financing may not quailify VA and then of course there are some properties that won’t quailify for VA but will able to financed using FHA financing. The nice thing about FHA financing for everyone who is not military is FHA is typically 3% with a medicore at worst credit score. Alot of people ask if they “can” buy an REO (foreclosure) using VA and of course the answer is “of course!” Many of the foreclosures that are out there have been brought up to financable standards by the owning bank, making them more attractive to more buyers and expanding their audience. The most important part is to partner with an “experienced” Realtor® who has sold REO properties and is familiar with the process. That Realtor® should also be familiar with the financing process and be able to help spot potential problems with the property that might create a problem during the inspection/appraisal process by the lender. REMEMBER the banks are selling these properties “AS IS” with no repairs so don’t look to them (the banks) to help fix a problem when it is dinged on a lender appraisal.
Come back next Wednesday when we wrap up finding and buying distressed properties! See you then!