Six advantages of buying an REO
Foreclosures are everywhere, in all neighborhoods, sitting, waiting, vacant, and when these foreclosures officially hit the market, the best will be gone before sundown. They are the REO – also known as Bank Owned properties – and they are the investor’s golden dream.
These Bank Owned properties offer many advantages associated with the purchase of a foreclosed property.
1) Priced Right: Almost all foreclosed properties are offered below retail value. The proper pricing makes obtaining a loan easier, because the loan to value ratio is very attractive for both conventional and FHA (3.5 percent down payment) money financing.
2) Large Inventory: Not only is there a surplus of Bank Owned (REO) listings in Maui, but across the Hawaiian Islands all markets are experiencing a high volume of foreclosures. In return, this is creating a surplus of Bank Owned properties (REO) on every island and many choices for the buyer. However, the cream of the crop goes QUICKLY; submit your contract immediately because it is very rare to have a second chance.
3) Clear and Clean Title: The foreclosure process eliminates all liens, judgments and taxes. It reduces the risk of any title problems and produces an easy transfer of ownership. In a condominium purchase, the buyer can be subject to past maintenance fees from the prior owner as within the guidelines of ACT 48 (contact me for details).
4) Vacant and Ready to Go: The property will almost always be vacant; the previous owners have moved out or the tenants have been evicted. The property is immediately ready for rehab, rent, sale or home ownership.
5) Timely Manner: Plenty of time can be given for the buyer to complete inspections, funding and closing; however, most closing dates are within 45 days from acceptance of the contract.
6) Easy to Submit an Offer: 98 percent of Bank Owned properties (REO) are listed with a Realtor and are on the easily searchable website MauiRealEstateLLC.com.
By contacting me, a broker experienced with REOs, you gain the guidance of a professional at no additional cost!
Greg Smith is your source for Maui REO properties. Greg is a licensed Realtor and is the number one provider of REO properties on the island of Maui. For a free list of REO properties, call Greg at 357-4782 today.