An real estate owned or REO is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. Although buying bank owned homes is a great way to make a great deal of money in today's real estate market conditions, new investors can't just dive in to investing. They need three key elements and unfortunately, they lack three crucial key elements even if they want to invest in this type of property - the cash, proof of funds letter, and the education and training.
The current sluggish economic condition is perfect for planning to buy a home instead of renting. Owning bank owned homes may be quite far fetched, but owning one is a better alternative to renting. Since bank owned homes sold by banks are cash only deals, buyers who want to purchase a home with a mortgage are not qualified to make offers. Those who have the cash are the only ones who can own bank own REO properties. Now this is where the proof of funds letter, a bank or brokerage statement showing that the buyer has available cash to purchase the property immediately, is required to be presented together with the contract to purchase the property.
Take note that the competition for bank owned properties is more intense especially for first time buyers. So, if you have plans in buying an REO or a bank owned property, you need to be financially wise. Research on the property you are interested in as well as the foreclosure laws in your state, real estate trends, and the current housing market conditions.
There are many reasons why buying a home is a good investment in the future. Not only that you will enjoy fulfilling your financial goal and having your own home, but it also continually inspires you to work harder. Some say renting is like throwing money, not when you don't have cash with you.
Having a place called home and knowing that your hard-earned money is being spent wisely is certainly more than satisfying.
The current sluggish economic condition is perfect for planning to buy a home instead of renting. Owning bank owned homes may be quite far fetched, but owning one is a better alternative to renting. Since bank owned homes sold by banks are cash only deals, buyers who want to purchase a home with a mortgage are not qualified to make offers. Those who have the cash are the only ones who can own bank own REO properties. Now this is where the proof of funds letter, a bank or brokerage statement showing that the buyer has available cash to purchase the property immediately, is required to be presented together with the contract to purchase the property.
Take note that the competition for bank owned properties is more intense especially for first time buyers. So, if you have plans in buying an REO or a bank owned property, you need to be financially wise. Research on the property you are interested in as well as the foreclosure laws in your state, real estate trends, and the current housing market conditions.
There are many reasons why buying a home is a good investment in the future. Not only that you will enjoy fulfilling your financial goal and having your own home, but it also continually inspires you to work harder. Some say renting is like throwing money, not when you don't have cash with you.
Having a place called home and knowing that your hard-earned money is being spent wisely is certainly more than satisfying.
About the Author:
Real estate investing can be too overwhelming for a regular home owner who wants to invest his or her money on something lucrative. In this case, consult your real estate agent to guide you in investing in foreclosed Stockton California Homes. Visit Stockton California Homes for more property options.
No comments:
Post a Comment