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I guess for disclosure purposes, I should add that most REO properties are in better condition than what we saw just a few years ago. At least now, the majority are cleaned out before, or very shortly after listing. And depending on the crew, salvageable items are donated to non-profits. However, the homepath properties still tend to be managed better, with response time within a day or two (while certain banks STILL make potential purchasers wait 4 or 5 business days before coming back with a response...
At least something they have done to make things better for the next new resident to move in. It looks like Homepath generally takes good care of thing. I would say it's a reputable, but still would have to inspect for hidden problems that Homepath may have overlooked which I read on their disclaimers.
At least something they have done to make things better for the next new resident to move in. It looks like Homepath generally takes good care of thing. I would say it's a reputable, but still would have to inspect for hidden problems that Homepath may have overlooked which I read on their disclaimers.
Of course. Every real estate purchase (except auction) allows a certain amount of time for complete home inspection (at the buyer's cost). In this area, water and sewer is private (well & septic systems) so home inspection will generally include those as well as insect (ant, termite, etc). Any foreclosed property is more at risk for hidden/malicious issues than a owner-occupant seller, but any seller is capable of lying on the disclosures (at the risk of later being sued by the buyer if it can be proved that any of the declarations is blatantly false. Which is why foreclosures are sold as-is, with no disclosures of any sort...
In the DC Metro area, the term "REO" (real estate owned) has nothing to do with income, crime rates, or any of the other "stigmas" you mentioned. It's bank lingo. All it means is they've taken ownership of the property. REO and foreclosure are synonymous.
Quote:
Originally Posted by sequoias
I had no idea what REO meant, until 2bindenver mentioned it's bank owned foreclosure. I researched on what it usually generally means. It means most of the homes are in areas with low to middle income, poor manitence by the banks, usually needs minor repairs...sometimes major. I think that could be most of the REO homes under homepath could be in higher crime areas?
Just remember this. Homepath financing offer this very attractive incentive for their financing.
No lender-requested appraisal
Scary for the uneducated buyer if you ask me.
...and that's why they should work with a knowledgable agent when making an offer.
I find Homepath financing very attractive for my clients because there is no PMI which can save hundreds per month and allow clients to buy a nicer home or save more money.
but I've had agents tell me that the Homepath sign was a big farce and no one was going to get a loan on a house that junky. So, you can buy this home for 3.5% down.......hahahah.
but I've had agents tell me that the Homepath sign was a big farce and no one was going to get a loan on a house that junky. So, you can buy this home for 3.5% down.......hahahah.
I got my home for 3.5% down. Far from junky (needed paint and pool needed filters). The last two similar sized homes on our block sold for 215,000 and 220,000. that is almost 40,000 more than what we paid. I will take that kind of funny anyday of the week.
Owner occupants can bid on Fannie Mae Homepath properties from the 1st day it is listed, while investors need to wait until after the First Look period has passed. In most states, First Look is the first 15 days that the property is listed (on HomePath.com) for. In Nevada, however, it's 30 days.
Owner Occupants have to sign a certification letter if they want their offer to be considered in the First Look phase. The fine is substantial: $10,000, for a buyer who deviates from this rule. After the First Look period, there are no restrictions flipping.
Quote:
Originally Posted by Houston321
Is there a waiting period if you intend to flip a HOMEPATH home?
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