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Archive for May, 2008

Things are heating up in the REO market.  As the largest amount of ARM loans reset their interest rates in the last 2 months, a record number of homes have fallen into some stage of foreclosure.  With the domino effect, more and more of the foreclosed upon homes have converted to REOs.  It is likely that over the summer months we will continue to see a surge in the homes being offered for sale by banks and lenders.

This summer is poised to be a record breaker for savvy buyers who wish to find a good buy on home of their dreams.  Unfortunately REOs won’t come knocking on your door; you do have to do a little bit of work. 

First you need to find a realtor who specializes in REO properties. This is essential to saving money and being successful in the REO market.  Lucky for you you’ve already found your way to our website and we are the recognized leaders in REO homes.  Send us an email with your contact information and we’ll be happy to help you navigate this hot market!

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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I have a great family.  It’s a huge family.  I have cousins and aunts and uncles in every borough and all over the Island.  And I have one cousin who lives in St. Louis.  He’s the family rebel.  Once a year the rebel comes “home” – his words, not mine.  He’s lived in St. Louis for 15 years, but this is still home.

“Home” means different things to different people.  I have my own home now and there is nothing as wonderful as coming home.  Still when I visit my aunt’s and uncle’s and cousin’s houses, they are home too.  Of course a lot of my sense of “home” is the people, but there is also something about the actual house as well.  I know when I enter my aunt Tova’s house there is going to be a faint smell of vanilla and sage.  When you walk up the stairs to my Uncle Bernie’s house there is one step that is a little off kilter, he claims it was caused by the earth shaking in 1969 when the Mets took the pennant.  And I can never smell lilacs without thinking of the bushes that bloomed every spring in Aunt Rose’s back yard.

Having a home is something that is unique and wonderful.  It is something that nurtures and protects and holds the memories of a lifetime.  It is an opportunity that should not be missed.

If you have been yearning for a home but have felt priced out of the market, you should take a look at the current REO market.  There are opportunities to save substantial money and become a home owner.  Give our office a call. Your home is waiting.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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There was a time when REOs were purchased predominantly by wealthy investors who were considered “real estate insiders”.  It was not uncommon for someone who purchased REO property to have an inventory of properties all of which were REOs.  Some investors flipped them, others rented them.  Today the typical REO client is vastly different.  Now they are as varied as their circumstances.

We have senior citizens who are buying REOs both as retirement homes and as rental properties for future income.  Young couples are buying REO, viewing it as their opportunity to enter the real estate market in a way that is safe, affordable and will have long term financial gains.  Single moms now purchase REO property knowing that they will save money and be able to put a roof over their children’s heads.  We recently had a couple purchase an REO for their child attending college in the area, the mortgage on the property was less than paying rent and the investment will still be there when the student graduates. 

Of course there are still “big” investors buying up REO property, now more than ever.  But the market is so full right now there is literally room for everyone.  What could an REO property do for you?

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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If you are buying REO property it could a substantial amount of money.  There are unspoken rules in the traditional real estate world.  In general real estate professionals will counsel clients not to put a low ball offer in writing.  It’s considered insulting to the seller, and often creates a hostile negotiation atmosphere which is not conducive to closing a deal.  A low ball offer is one that is significantly below the asking price.  Even in today’s tough real estate market low ball offers are not well received.  To put it mildly sellers get mad.

The same is not true in the REO market where a low ball offer is mute, as the banks will frequently price their properties below market value in order to sell them quickly.  Banks and institutions aren’t grappling with the emotions of dealing with changes in the market. Too often home owners are slow to lower the price of their home because they are still tied up in the emotions of “If I had sold this 1 year ago I could’ve gotten…” Banks don’t waste time, they are able to look dispassionately at the market and set a competitive price in order to sell the home quickly and efficiently.  For a savvy homeowner, that can mean getting a home for the equivalent of a “low ball offer” without having to wade through all of the negotiations and emotion.

In a market where every dollar saved is important, removing the emotion could be a windfall for the savvy buyer.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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Sounds like a nightmare doesn’t it?  Who would want to buy a property without a bathroom?  A smart investor.  I wasn’t involved in the sale of this particular home, it was actually in another state, but I think it is a great illustration of what can happen in today’s real estate market.

A couple bought a home and lived in it for a number or years before deciding to refinance so they could do some improvements on the home. The husband planned to do most of the renovation himself.  He began by gutting the master bathroom.  On the day that he finished the demolition on the bathroom, he lost his job. His company decided to outsource his job overseas. 

Suddenly all of his attention was on finding another job.  Money that was allocated to the renovation job now went to keeping food on the table and the mortgage paid.  When the introductory rate on the mortgage changed so did the home owner’s lives.  Now they could no longer meet the mortgage payment.  They talked about selling the home, but with the gutted bathroom and the housing market down turn it looked like a bleak prospect.  Instead they focused on looking for more income. Unfortunately time ran out and the home was foreclosed upon. The lender was forced to put the property on the auction block.  When it didn’t sell at auction the property reverted back to the bank and it became REO.

The Bank hired a real estate consultant to get the home sold.  That consultant notified several realtors that they had worked with before that the property was available.  Here is where it gets interesting.   The property was valued at $350,000 (the assessment was after repairs) the bank’s investment in the property was for $275,000 (this included the mortgage and the cost of the foreclosure.)  The bathroom repair was estimated at $10,000.  A smart investor purchased the property for $290,000 with $15,000 built into the loan for repairs.  At $290,000 the investor got the property for $60,000 below market value and was able to design the bathroom of her dreams. She also got all new carpeting.

The investor didn’t view the missing bathroom as a calamity; she viewed it as an opportunity.  Are you ready to start seeing opportunities?

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

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What does your dream home look like?  Isn’t it a great question?  You can ask anyone from 3 years old to 103 years old and they instantly light up and start giving details about what their dream house looks like.  Owning a home and having it suit your needs, wishes and desires is as universal as wanting to love and be loved.  Having shelter is right up there on Maslow’s hierarchy of needs. 

At a time when the media is reporting that keeping their homes is a struggle for more and more Americans, it is important to note there is another aspect to the real estate market that is actually making it possible for more first time home owners to get into the market at a lower price point.  The market that is making this possible is the REO market.  With homes being offered at between 10% and 30% below market value, this is an opportunity that should not be over looked.  

If owning your dream home seems far away these days, give us a call and we will show you what is possible in this amazing market.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

 

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People are talking about REO property but there are a lot of misconceptions about what REOs are and what they aren’t.  Hopefully we can clear some of that up.  REO stands for Real Estate Owned, and basically what it means is the property was foreclosed upon – the owner was not able to meet their obligations and the bank/lender went through the process of foreclosing on the property.  The property went up for auction and did not sell at auction, so now the owner of the property is either the bank or the lender.  At this point it is called REO.

REOs have been around for a long time.  Traditionally, they were fixer uppers that investors would purchase, renovate and then either rent or sell.  Today there is no such thing as a “traditional” REO, now they come in all shapes, sizes and conditions.  And they are available in virtually every neighborhood.  You drive by them everyday.  They don’t have a sign saying REO property, nor are there signs saying 10%, 20%, or 30% off.

The best way to identify REO properties is to work with an REO real estate specialist.  We help people to find REO property and to navigate them through the negotiations involved in buying this particular type of property.  If you would like to know what is available in your area give us a call.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

 

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