Home Buying in 01906>Question Details

Glenn Boyce, Both Buyer and Seller in Lynn, MA

Looking to aquire an REO in the Northshore of MA.

Asked by Glenn Boyce, Lynn, MA Mon Nov 15, 2010

Dear community,
Do to the continuing slump in the Realestate market and the endless oppurtunities in the foreclosure market in particular....me and my fiance are looking to obtain an REO. We have done some investigating and know that banks only list their REO's with certain broker's. We also have been reading that banks don't like to offer financing on their own REO's??? If this is not the case with the loss mitigation departments you list home's for....we want to talk to you!!!
We both have good jobs and some money saved for downpayment. Both of our credit is good enough to qualify so that shouldn't be a problem. we just want a DEAL DEAL DEAL!!!!

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Answers

4
David Cutler’s answer
Have you found your REO DEAL yet!? There are a ton of nice single family bank-owned homes popping up in Peabody area lately. Many need a good amount of cosmetic work and maybe a roof or replacement heating system but the numbers definitely make sense and if you don't mind putting in the work it will pay off! You dont need the bank that owns the foreclosed property to give you the loan, there are some great loan options available such as the 203(k) loan that offers 96.5% financing for both the purchase of the property and 96.5% of the renovations and upgrades you wish to do. Its fairly easy to qualify for and is a great tool for buying homes in need of work such as most REO's. Please let me know if I can be of any help or you need more info on any available REO properties or on the 203k Rehab loan options available.
Web Reference: http://www.buywithdavid.com
0 votes Thank Flag Link Thu Feb 16, 2012
There are more REO's on the market now than there were when you posted this. That being said, most REO properties are on MLS along with other properties. The problem with getting a deal in our area is based on the market. Though banks want to unload these properties, out housing values have remained pretty steady through this economy. I know this because I own a home in Saugus and I work with clients all over the North Shore. Most banks are still not willing to let a property go for much under fair market value because 1) they want to make money 2) they want the neighborhoods to retain value.

There are some very good deals available, but it takes time, patience, and often some money to fix up the property. Feel free to get in touch if I can help.

Best of luck on your home search and your wedding.

Talisa
0 votes Thank Flag Link Thu Jan 20, 2011
Hi Glenn -

Please feel free to contact me directly. I do a lot of business on the North Shore representing Buyers on purchasing foreclosed properties. I am very active with RealtyTrac and would be happy to help you find a good deal in this area.

Eric and Jennifer Erickson
homes@teamericksonre.com
978-882-4203
0 votes Thank Flag Link Thu Dec 2, 2010
Yeah on general knowledge of REOs, some banks want you to get pre-approved through their lender first. I've seen them when Bank of America takes them over, they will do anything they can to take the loan from your original loan officer.

REO's are usually the best way to go, just like you said they are sold as is, so be prepared to get your inspections done within 10-14 days...

The other options is to buy a home thats a regular sale thats been bought at an auction and fixed up by the investor. This way, you will probably have a clear termite, new paint, new carpet, appliances, flooring, etc..now you will probably pay a bit of a premium, but at least you don't have to do the work before you move in.

When you say "deal, deal, deal" now ask your realtor in the area to give you what the median list vs sold price is, most of the time the banks aren't unloading the properties at like 80% of the market value. I don't know your area, but in my area the max discount I've seen for the year is 3 to 4% off the list price. Just last month our sales data came out for October and people are still bidding $5,000 higher than list price.

Good luck with everything and wish you the best of luck to purchase your home.

Sameer
0 votes Thank Flag Link Mon Nov 15, 2010
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