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

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

Home Sweet Home

There is no place like home.  Sure, we all like to go away for vacation, but isn’t it always a relief when you come home?  Home is the place where everything makes sense; you know exactly where the light switches are with out even looking.  Home is where we live the majority of our days and where most of our memories are made.  It makes sense that having an affordable home that adds to your emotional and financial security would be a blessing.  REO Property is a wonderful way to purchase just such a home.

If you are in a home that causes you more financial stress than emotional security, or if  you are currently renting your home – it is time to look into purchasing an REO property.  Please give us a call at Island Advantage Realty LLC, we are the definitive source for information on REO homes in the Long Island and Metro NY areas.  Make sure that the address you come home to adds to your enjoyment of life.

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.

The REO Process and the NY Foreclosure Showcase

A home doesn’t become REO property overnight; it is actually a rather lengthy process.  First there is an extensive foreclosure process after which a property will be offered at auction.  If the property fails to sell at auction it will then become REO or Bank Owned property.  At that time the bank with generally bring in a real estate professional to assess the situation and begin to list the home.

One of the issues that arise from such a long process is that often there is no one providing upkeep on the home during the process.  The bank doesn’t legally have the right to enter the property until it is deeded to them and when a home owner is in the process of loosing their home to foreclosure they tend to have other issues on their mind than maintaining the home.

This can create some undesirable side effects.  It’s not unusual to see overgrown lawns, untended landscaping, broken fixtures, soiled carpets, broken windows and a general sense of neglect when looking at a REO property.

The good news is that repairs from neglect are usually easily fixed and whether the repair is large or small the cost of the repair will be deducted from the cost of the home.

With just a little time and tender care these homes can easily be restored to their natural beautiful state.  If you are interested in more information about REO properties in the Metro NY or Long Island areas please contact 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 Gabriella@IARNY.com

Check out the New York Forclosure Showcase on October 12, 2008.  For more information call 516-368-8599 or visit the site at www.nyforeclosureshowcase.com