What is an REO?

10th in our series of 10 blogs on Foreclosure Auctions is REOs.  An REO stands for “Real Estate Owned,” and that simply refers to the fact that the bank now owns the property.  Because banks answer to shareholders and need to keep their books with a positive balance, defaulted loans are considered undesirable.  A mortgage that has been foreclosed on is a liability until the bank is able to recover the money it loaned originally.  Banks are motivated to get REOs out of their inventory.

It’s possible-with a great deal of caution and research-that an REO can be a great investment option.  It cannot be stressed enough that research can be the difference between making and losing money on an REO.  Because the property was foreclosed, the possibility is greater that the property hasn’t been maintained and might require quite a few repairs.  Inspections are encouraged and allowed before you even make an offer.

Banks will be somewhat more amenable to the buyer and the buyer’s concerns due to their eagerness to have the REO off their books.  Keeping this in mind, REOs can be a very positive investment choice.  Contacting local banks and asking for listings of their REO offerings is the first step.  Comparing those listings and prices to similar real estate listings in the area will get you off to a good start.  As with an auction, not winning the offer on an REO shouldn’t make or break anyone, so proceed with caution and good luck!

For more information on foreclosures and REOs in the Metro NY and Long Island area, make sure you attend the lst annual New York Foreclosure Showcase this weekend.  This exciting event is sponsored by Island Advantage Realty LLC, the recognized experts in this field.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

Taking Ownership if you Win the Bid

8th in our series of 10 blogs about Foreclosure Auctions is Taking Ownership if You Win the Bid.  An important thing to determine before the auction is whether or not your state has a redemption period after a foreclosure auction.  This is a period of time during which the owner can re-purchase the property if they are able to pay the full amount paid at auction plus any fees and taxes.  If there is a redemption period in your state, you should take care not to invest any money in the property until after the period ends.

Upon winning the bid, you will need to meet with the auctioneer and trustee representing the bank to submit your payment, provide any necessary paperwork, show any identification required, and make arrangements to receive the deed if it is not immediately available.  You may also be responsible for evicting any tenants or even the previous owners.  The County Sheriff’s office is a good place to start for an eviction process.   Hopefully your new property will be yours to inspect, modify, and enjoy as soon as possible.

For more information on foreclosures and REOs in the Metro NY and Long Island area, you will want to attend the lst annual New York Foreclosure Showcase on the 12th of October.  This event is sponsored by Island Advantage Realty LLC, recognized experts in this field.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact www.nyforeclosureshowcase.com.

Property Reverts to the Bank

9th in our series of 10 blogs on Foreclosure Auctions is Property Reverts to the Bank.  In the unfortunate event that none of the bids are accepted in a foreclosure auction, the property will revert to the bank.  This simply means that none of the bids were high enough for the bank to recoup its losses for the mortgage.  Banks are required by their shareholders not to lose money; therefore, when a homeowner is unable to pay their mortgage, it becomes the bank’s responsibility to try and recover the money at auction.

If the foreclosure auction doesn’t result in bids that will satisfy the mortgage, the bank will simply withdraw the property from auction and take possession.  The bank then has several options: the property can be rented, put up for a regular real estate sale, or sold as an REO.  The local market and how many properties the bank has had to foreclose will indicate the best solution for the bank.

For more information on foreclosures and REOs in the Metro NY and Long Island area, please attend the lst annual New York Foreclosure Showcase on the 12th of October which is sponsored by Island Advantage Realty LLC the recognized experts in this field.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact www.nyforeclosureshowcase.com.

Attending the Auction

7th in our series of 10 blogs about Foreclosure Auctions is Attending the Auction. Anyone who’s ever seen the episode of The Dick Van Dyke Show where they attended an auction knows that some interesting things can happen when people start bidding. Real life can be a little different, yet still very entertaining.

Obviously you want to come prepared. If you’ve read the 6 previous blogs, you know the kinds of things you will need to do in preparation, and the paperwork necessary in order to be a serious bidder in a foreclosure auction. A little advance work, and you can be a major contender in any auction. One of the most important things to keep in mind is that there will always be another auction. Not winning one auction shouldn’t make or break anyone. With that in mind, and a definite set of limits, bidding can be a very strategic and interesting diversion.

Try to discern how high your competing bidders will go. You can chat with people before the bidding takes place, and that might be a good time to size up the competition. Some people are there for the first time, and they will tend to be timid when bidding. There might be a land developer with deep pockets. It’s hard to say for sure, but having some idea of who you are bidding against can help you develop your strategy. Most of all, try to have some fun with it. Maybe you’ll get lucky and make a fortune from you investment.

If you are interested in more information on foreclosures and REOs in the Metro NY and Long Island area, you will want to attend the lst annual New York Foreclosure Showcase on October 12th, sponsored by foreclosure experts Island Advantage Realty LLC.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances. Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action. For further information or questions please contact www.nyforeclosureshowcase.com

Securing Proper Documents for Bidding

6th in our series of 10 blogs about Foreclosure Auctions is Securing Proper Documents for Bidding.  Real estate transactions can be somewhat daunting if you aren’t sure what to expect.  Doing research, asking questions, and using professional consultants, such as a real estate agent are just a few ways you can help minimize the angst.  One important facet of bidding successfully in a Foreclosure Auction is securing the proper documents.

As mentioned in previous blogs, a cashier’s check is usually required in a foreclosure auction.  Determining the requirements for the amount is extremely important.  Not having a check for enough money will disqualify you from the auction.  You will need to contact the Trustee to find out the exact amount necessary. 

In addition, you will want to bring two forms of ID in order to prove you are in fact you.  If you are using a loan of any type to finance the payment for the rest of the property, you will need to bring those papers as well.  Finally, you will want to check with the local officials at the County Clerk’s office to verify if any other documents are needed.  With a little planning ahead, you can have a very smooth and stress free auction experience.

For more information on foreclosures and REOs in the Metro NY and Long Island area, you will want to attend the lst annual New York Foreclosure Showcase on the 12th of October.  This event is sponsored by Island Advantage Realty LLC, recognized experts in this field.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

Offereing a Pre-Emptive Bid

Our 5th topic in our series of 10 concerning Foreclosure Auctions is Offering a Pre-emptive Bid. Occasionally a homeowner will be willing to entertain the possibility of selling before auction in order to prevent the foreclosure. Accordingly it behooves the buyer to offer the potential. This is a perfectly legal maneuver, and can benefit both parties.

There is a short period of time, usually less than 4 weeks, in which the homeowner can still pay off the mortgage before the foreclosure becomes official. The biggest enticement to the homeowner is preventing the foreclosure which will ruin their credit rating for many years, and make buying any future homes difficult to impossible. The benefit to the buyer is possibly being able to purchase the property at a lower price. If you can arrive at a mutually beneficial price, this will be a win-win.

If the seller agrees to your pre-emptive bid, then the sale will proceed as a regular sale, albeit with a much shorter timeline. Pre-emptive bids can be a very intelligent way in which to invest in real estate and get more “bang for your buck.”

Want more advice on how to purchase a foreclosure home? Attend the upcoming lst Annual New York Foreclosure Showcase on the 12th of October, sponsored by Island Advantage Realty LLC.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances. Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action. For further information or questions please contact www.nyforeclosureexpo.com

Establishing Your Maximum Bid Amount

Our 4th topic in a series of 10 about Foreclosure Auctions is Establishing Your Maximum Bid Amount. A smart investment in real estate can earn money for you. You need to know how much money you can afford to bid in order to make a reasonable investment.

Depending on the state you live in, you will either need to have the full amount of your bid, or a percentage of your bid in a cashier’s check at the time of the auction. If your finances are not liquid enough to provide that much cash, you can consider mortgaging properties you already own, or taking a loan for the amount, dependent on your financial situation.

Your maximum bid should include the full amount of the remaining mortgage, and whatever amount you think will be necessary to win the bid, yet remain within your financial ability. Keeping this maximum amount in mind may make it easier for you to bid in a prudent manner, and achieve your goal of winning the bid.

For more information on foreclosures and REOs in the Metro NY and Long Island area, please attend the lst annual New York Foreclosure Showcase on October 12th, sponsored by Island Advantage Realty LLC, recognized experts in this field.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances. Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action. For further information or questions please contact www.nyforeclosureshowcase.com

Researching the Property

Our 3rd topic in a series of 10 concerning Foreclosure Auctions is Researching the Property.  In order to make an intelligent bid, you need to know all of the information about the property.  Any outstanding liens, the amount of the remaining mortgage, a title history, the condition of the property, and any repairs that are needed, and an appraisal are all important data.  Another source of information would be to check on the real estate market in the area surrounding the property.  Look at comparable homes, and see what they’ve sold for to give you some idea of the current worth of the property.

The best place to start for this type of information is with the county recorder.  The financial information will be available from this county employee.  The trustee managing the auction for the mortgage holder is another good resource.  And finally, the owner of the property, if they are so inclined, can provide you with most of what you need to know.  Double checking your information would not be a bad idea, just to safeguard against any surprises.

If you win the auction, you will be responsible for the remaining mortgage, any necessary repairs, and possibly any outstanding liens.  This can be quite an expensive endeavor if you aren’t prepared for it.  Knowing exactly what you are bidding on can make the difference in winning an auction being a nightmare or a dream come true.

For more information on foreclosures and REOs in the Metro NY and Long Island area, you will want to attend the lst annual New York Foreclosure Showcase on the 12th of October.  This event is sponsored by Island Advantage Realty LLC, recognized experts in this field.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact www.nyforeclosurereport.com

Foreclosure Auctions is Researching the Property

Our 3rd topic in a series of 10 concerning Foreclosure Auctions is Researching the Property.  In order to make an intelligent bid, you need to know all of the information about the property.  Any outstanding liens, the amount of the remaining mortgage, a title history, the condition of the property, and any repairs that are needed, and an appraisal are all important data.  Another source of information would be to check on the real estate market in the area surrounding the property.  Look at comparable homes, and see what they’ve sold for to give you some idea of the current worth of the property.

The best place to start for this type of information is with the county recorder.  The financial information will be available from this county employee.  The trustee managing the auction for the mortgage holder is another good resource.  And finally, the owner of the property, if they are so inclined, can provide you with most of what you need to know.  Double checking your information would not be a bad idea, just to safeguard against any surprises.

If you win the auction, you will be responsible for the remaining mortgage, any necessary repairs, and possibly any outstanding liens.  This can be quite an expensive endeavor if you aren’t prepared for it.  Knowing exactly what you are bidding on can make the difference in winning an auction being a nightmare or a dream come true.

For more information on foreclosures and REOs in the Metro NY and Long Island area, you will want to attend the lst annual New York Foreclosure Showcase on the 12th of October.  This event is sponsored by Island Advantage Realty LLC, recognized experts in this field.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact www.nyforeclosurereport.com

Researching the Auction Procedures in Your State

Our 2nd topic of 10 concerning Foreclosure Auctions is Researching the Auction Procedures in Your State.  Because each state establishes its own procedures and laws regarding foreclosure auctions, you will need to find out all the little details before wading into the world of auctions. 

The first piece of information you will need is the name of the county in which the auction will be held.  The county clerk, or equivalent thereof can provide a wealth of facts and figures.  Who is actually conducting the auction, whether a bank, or county sheriff?  What are the requirements for payment as winning bidder?  How much money down is required?  If it possible to speak to the trustee managing the account?  How does the bidding work?  These are some of the questions a county clerk can answer.

Another source of information would be a real estate agent in the county where the auction will be held.  A web search, or a call to the local Chamber of Commerce can result in a number of names.  .  In the Metro NY, Long Island area the recognized experts in foreclosure and REO sales is Island Advantage Realty LLC. On October 12th we will be hosting the 1st annual New York Foreclosure Showcase.  If you are interested in learning more about this exciting market you won’t want to miss this showcase!
Ask a lot of questions.  Do not be concerned about appearing uneducated.  In this instance, it’s better to ask the questions and become educated than to try and blunder through and possibly lose a great deal of money.  We can and will help you become a savvy bidder.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact www.nyforeclosureshowcase.com