Can someone please explain 'REO to me? I found a house 6 miles from my apartment in 32825 that I just love

Asked by Beth, 32829 Sun Jul 13, 2008

and have been watching it for a while. Online I found that the house is now REO but in the MLS it just says sold as it and not REO.

I also need to find a first time home buyers course for me to attend to get the down payment assistance. I just started my new job so weekends would be best in the UCF area. I would prefer to be able to attend the class but not be locked in to use that company. Please let me know if the class has a fee as I know the one at my old company was free. Also, what is the limit of the assistance? I know that it was $10K but my sister said that it went up. Is that correct?

Last question I promise, to get a showing of the house do I need to have my mortgage preapproval and down payment assistance first?

Thanks!

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9
Vicky Chrisn…, , 20176
Sun Jul 13, 2008
BEST ANSWER
Many questions
- REO is Real Estate Owned (usually a bank that has foreclosed on the home now owns it) They are all sold "as is" and there may not be any other obvious signs on the MLS listing via the public internet site.
-There are many kinds of down payment assistance. What comes to mind immediately is the type you use to get a 3% down payment with FHA funding. I don't think you have to take a class to get down payment assistance through the 3 big companies, although others may require it, and also other funds may require it - your lender will direct you, but you can get info on line at http://www.getdownpayment.com; http://www.ameridream.org; http://www.preferredprogram.org. Again, your lender will screen and run you through scenarios and tell you of local funds and programs that also could be available to you.
-To see a house, no, you should have to be all of those things - especially if they have an open house. However, as agents we don't care for showing homes to someone who we don't know is serious and can get financing. Besides, what good does it do you? You won't be able to write an offer until you know how you're going to pay for the house. Get prequalified.

The real first step is you need an agent. If you don't have one, email me directly vchrisner@kw.com, I'd be happy to help you prescreen an agent in your area. Your buyers agent can walk you through all the things you need to know. He/she will give you the answers to these questions and others you have not thought to ask yet.

Regards,
Vicky
1 vote
Michael Smith, Agent, Orlando, FL
Tue Jul 15, 2008
Downpayment assistance is available up to $30k however they only have funds for new home purchases and rehabs. New funding will be available in Jan 2009. http://www.c21solutionsrealty.com
1 vote
Rick Aguirre, Agent, Orlando, FL
Tue Jul 15, 2008
Beth,
Here is alink you may find helpfull. It is for 1st time home buyers. Start there and if you have more questions please post them here and we will be glad to help.
Down Payment assistance does have some advantages and drawbacks. The big drawback is that you must remain in the house a minimum amount of time ( depending on the program) generally 5 to 10yrs. If you sell prior to that you must repay the amount of the downpayment assistance back.
As far as viewing property you do not need a pre approval letter, Although it help as a Realtor would like to know that he/she is working with a qualified buyer.
REO's are Real Estate Owned as previously mentioned.
Hope this Helps.
Rick.
http://www.salary.com/personal/layoutscripts/psnl_articles.a…
1 vote
Christopher…, , Orlando, FL
Mon Jul 14, 2008
These are all very good answers. I also would recommend getting pre-approved as well. The programs that some are stating here are actual loans that can be forgiven if property is owner-occupied for up to 15 years. I would also suggest that there are non-profit programs that provide credit assistance and 100% fixed financing. I have used these with clients and can attest that they are not predatory lenders and are not scams, actually quite the opposite as they were formed because of the scammy mortgage people. Anyway, don't feel rushed because there are many good deals on properties that banks have taken back and are needing to sell. I hope this helps and please feel free to contact me at 407-529-9286, themartinletter@yahoo.com, if needed. -Chris
1 vote
Steve Javier, , Orlando, FL
Mon Jul 14, 2008
Ok, by now you know what REO means, what noone has told you is that the $10K assistance you are looking for is not a gift. In reality its a loan that needs to be paid back if you move,sell, refinance within 5 years.
As a Real Estate Associate and Mortgage Broker I allways tell my clients, you are better off without this money. There are 3% downpayment loans and still 0% downpayment loans out there.
It does depend on your credit and credit history.
For a no obligation consultation about your situation, please feel free to call me.
1 vote
Bill Eckler, Agent, Venice, FL
Mon Jul 14, 2008
Beth,

As previously stated, REO designates, bank ownership.

No, you don't need to be "pre-approved" to be shown the property. However, if you are a serious buyer and
want to make an offer on the home, being pre-approved will speed up your offer process. The reality is that, if you see the appeal and opportunity with this home.....other people will as well. It would benefit you to be first in line when dealing with the bank.

Good luck,
The "Eckler Team"
Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363
1 vote
Karl, , Orlando, FL
Sun Jul 13, 2008
Beth, REO stands for Real Estate Owned. It means that the property is now owned by the bank or lender.
I am searching for first time buyer's classes that meet your specific criteria. In the meantime, you might visit the Bank of America's website and see what they have about such courses. Another source would be the Orlando Regional Realtors' Association. Feel free to give me a call at 407.275.0439.
1 vote
Carlos Herre…, Agent, Orlando, FL
Sun Jul 27, 2008
Very simply put...
an REO is a home that the bank now owns because they have already foreclosed on a home.
REO means Real Estate Owned.
The bank now offers this home for sale...purchasing it would be almost just like buying it from a regular seller..except you might get a nice discount on it...
carlos@orlandorentalstore.com
0 votes
Broker Dave, Agent, Orlando, FL
Mon Jul 14, 2008
Beth,

Try this link for Orange county:

http://www.orangecountyfl.net/cms/dept/growth/housing/progra…

Get a "Free Market Snapshot" on my website http://two4oneoforlando.com

Dave Lowe
Broker / e-PRO
Web Reference:  http://Two4OneofOrlando.com
0 votes
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