Linkpin Realty

LANDLORDS AND REO PROPERTIES

LANDLORDS AND REO PROPERTIES

How do these two intermix? Landlords are in the business of making a monthly income off the money they have invested in properties they rent. If they have too high a percentage of renters that do not pay rent on time or just do not pay the rent the Landlord then starts an eviction process that takes 90 days or longer. If they have too many of these going on or let’s just say they own one house with a $3000 a month mortgage and normally collect $3800 a month for the rent. The profit should be around 8% per month maybe $300. If the renter stops paying rent and are served an eviction notice and it takes 120 days to get them out that is a loss of $15,200 in rent plus however long it takes to clean up the house and rent it again being conservative let’s say one more month for a total of $19,000 plus clean up and repair expenses. If the landlord makes $300 a month on the property it will take them over 5 years to break even on this snafu. You can see if the landlord did not have a minimum of $25,000 in reserves just for this one property how you could send them into foreclosure quickly. I did not even bring up the attorney and court costs for the eviction. Landlords beware, choose your tenants wisely!

Submitted by Frank Giaimo Broker Associate Linkpin Realty 619-749-8726

www.linkpinrealty.com  

Financing & REOs or Bank Owned Properties

Financing & REOs

If you have every made an offer on a REO or Bank Owned Property one of the financing issues that may come up is that the Bank that owns the property may want you to get cross-qualified with their bank for the loan. It is not unusual for a seller to want to use their services such as Escrow & Title when you purchase, that is common. But it is not legal for the bank to require you to use their financing but it does go a long way in getting your offer accepted. They normally will offer you a free credit report or appraisal if you use them. Remember; always try to give yourself the best chance of getting your offer accepted by separating yourself from the other buyers. All other things being equal in your offer, using the bank’s loan officer for the loan may be just what gets you the house of your dreams! For more information on purchasing REO or Bank Owned Properties in the San Diego County Area Call Linkpin Realty at 619-749-8726. www.linkpinrealty.com

Submitted by Frank Giaimo Broker Associate Linkpin Realty

REOs, Why aren't More on the Market?

With so many people losing their jobs and not making their Mortgage payments why aren't more properties going to foreclosure? There are many reasons. Probably the main one is that Banks are giving homeowners every opportunity to save their house with a loan modification or using the short sale process prior to going to foreclosure. Banks will postpone foreclosure Auctions 2 and 3 times when the house is being sold Short.

To find out exactly what is going on with the house down the street from you in San Diego County call 619-749-8726, Linkpin Realty, www.linkpinrealty.com and we can help educate you on the process and help you find the property that is right for you.

Submitted by Frank Giaimo Associate Broker, Linkpin Realty

REO Offers

How much less than List Price will a Bank Take?

Not Much!  As a matter of fact most Bank Owned Properties get bid up over list price. Many buyers think they are getting a Great deal so they bid higher than they would on some Short listings or Equity Sales. Granted, there are very long waiting periods when submitting an offer on a Short Sale and many Equity Listings are still over priced. The Bank has no emotion when it comes to the list price. They order what is called a Broker Price Opinion. This is done by a local Realtor that knows the area where the property is located. Two or three of these are ordered and one is also done by the agent that will be listing the property. If all the values are close to the listing agent's number the Listing agent's value is normally used. On some REOs, like Fannie Mae, the bank expect's the list price to be 120% of the BPO value. This makes the listing agent's job difficult because no buyer wants to over pay. The bottom line is that if you use a Buyer's agent to help you purchase a property it makes sense to make sure they also LIST REO properties so they can give you the insider info to make sure your offer is accepted. For more info on making offers on San Diego County REO or Bank Owned Properties Call 619-749-8726

Frank Giaimo Broker Associate

Linkpin Realty / mailto:info@linkpinrealty.com Reo Listing Brokerage

619-749-8726

REOs, Foreclosures, Real Estate Owned

SAN DIEGO REAL ESTATE

REOs, Forecloures, Real Estate Owned

There seem to be less & less on the market doesn't there? What is happening is there has been more and more pressure, by the Government, to help homeowners keep their properties through bank assisted programs. This is a good thing but only for homeowners that want to keep their properties. There is a segment of the population that is doing what is called a "Strategic Foreclosure". Let me explain this. The homeowner knows they do not want to make payments on a property that is not worth anywhere near what they paid for it. The homeowner has the money to make the original payments, are not in any financial trouble, but DO want to stretch it out as long as they can. First of all they stop making payments, the property goes into default anywhere from 3 to 12 months or longer. There are some properties people are living in that they have not made payments on for over a year! Once the property gets foreclosed an Agent of the Bank will do what is called an Occupancy Check. If anyone is living in the house they are asked what their intention is. In this case the previous homeowner wants money to leave. The Bank's Agent will negotiate a "Cash for Keys" settlement and the previous owner will take the money and leave in the agreed time frame. That is what they wanted from the beginning. To not make payments on a property that had lost it's value, live there as long as possible without making payments, and then receive cash to leave; this is what a strategic foreclosure is!

For more information on Bank Owned Properties and REOs please call Linkpin Realty at 619-749-8726
Submitted by Frank Giaimo Broker Associate Linkpin Realty http://www.linkpinrealty.com/