Get Savvy and Save! Short Sales are for Losers, REO's (Bank Owned Property) is the Way to Save Money Now!

Rookies to real estate investment often see California's current trends of rising foreclosures and jump on the many short sale opportunities present on the market.  They see low ask prices and go crazy dreaming about the instant equity and wealth they will make by snatching up these hot deals before anyone else can at a foreclosure.

The reality that escapes these would be investors is the fact 99% of the time the bank will not accept their offer prior to an auction.  So the short sale property sits idle on the market attracting would be buyers who fax over volumes of documents with little or no results.  It's attune to the junk mail you get in your mail box everyday both online and off.  It's just a bunch of noise the bank cares little about.  The bank will eventually invite you and ten to twenty other short sale bidders to the public auction date.  The minimum bid will include all of the costs the banks seeks to recoup which will most likely leave you at or above market value to snatch up your great deal,  it's not such a great deal...  Welcome to reality.

Stop wasting your time, money and effort killing needless trees faxing stacks of offer documents over that get little to no attention and almost never get accepted.  Step up to where the savvy investor plays and buy direct from banks after they discount their real estate prices.

Welcome to the world of REO!!!!

This is what wikipedia says about REOs:

Real Estate property acquired for investment or as a result of foreclosure.

REO means - Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most foreclosure auctions equals the outstanding loan amount, the accrued interest and any fees associated with the foreclosure sale.

If the property is real estate owned, the bank will then go through the process of trying to sell the property on its own. It will try to remove some of the liens and other expenses on the home, and then try to sell it on the market. Real estate investors will often go after these properties as banks are not in the business of owning homes and, in some cases, the house can be bought at a discount to its market value.

So why are REOs attractive?  The most significant component an REO purchase has over many other types of distressed property purchases is the bank does the discounting and your are not left to the auctioneers hammer to set your purchase price.  You are in control!

So what's happening now in REO's

Today in our local region our REO sales leaped over 200% in a single month.  As I write this article my group maintains a list of well over 300 properties in our our region (Inland Empire, CA) that are presently being offered for sales by lending institutions.  Many of which are being offered below market value. 

For the savvy investor or home buyer who has waited and saved for the right time to buy, there could not be a better time to jump on a white hot deal!

To get access to our proprietary list all you need to do is email (kknapp(at)homeloanchaoches.com)or call me (888-367-6926).