when does a bank owned property become a reo (not sure exactly what reo means) I am looking at a property in forclosure and it appears that 90,000 is owed but I would like to hopefully get it for 60-70 what are my options
The instant that a bank takes title to a property via foreclosure... it is an REO (real estate owned). This can be immediately following the Sheriff's or Tristee's auction... or following a redemption period during which the (former) owner can recover the property.
If the bank does not yet own the property... you can contact the owner and seek a preforeclosure, &/or preforeclosure short sale.
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how would one go about carry out a short sale. will the contract have to be drawn up and exchange of money done before the bank actually take pocession of the house? or is a contact enough to stop forclosure and if so how long do you have to finalize purchase?
Short Sale Pro I was told that one of the requirements for a ShortSale for the owner is to reside in residence before the ShortSale was ordered.
If this is true, does this disqualify the owner for a ShortSale with Wells Fargo.
It may disqualify the Owner from short sale consideration... but since every lender has different ss criteria... you won't know unless/until you ask... or if they find out.
FHA is strict... but with others... less strict.
There are ways to circumvent the non owner occupancy status.
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What are the ways to circumvent the non owner occupancy status?
Quote:
On 2004-08-28 17:40, TheShortSalePro wrote:
It may disqualify the Owner from short sale consideration... but since every lender has different ss criteria... you won't know unless/until you ask... or if they find out.
FHA is strict... but with others... less strict.
There are ways to circumvent the non owner occupancy status.
The instant that a bank takes title to a property via foreclosure... it is an REO (real estate owned). This can be immediately following the Sheriff's or Tristee's auction... or following a redemption period during which the (former) owner can recover the property.
If the bank does not yet own the property... you can contact the owner and seek a preforeclosure, &/or preforeclosure short sale.
[addsig]
how would one go about carry out a short sale. will the contract have to be drawn up and exchange of money done before the bank actually take pocession of the house? or is a contact enough to stop forclosure and if so how long do you have to finalize purchase?
tonya5015 :-?
A preforeclosure short sale must be completed 1) with mortgagee's approval and cooperation, and 2) before the foreclosure auction takes place.
Simply having a contract for sale is not enough to stop a Sheriff's or Trustee's Sale.
To learn about the short sale process, check out the articles, courses, and books available on TCI...
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you dont need that much time for a SS. 3 weeks is ample...
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Except for a nominal junior lien... I've never had a short sale done in 3 weeks.... three months is more like it.
Perhaps the initial agreement, passing thru attorney review and getting the Purchaser's prequal or preapproval...
Conventional acquisitions take from 30 to 60 days. In my experience, more complex, problematic transactions take much longer....
[addsig]
Short Sale Pro I was told that one of the requirements for a ShortSale for the owner is to reside in residence before the ShortSale was ordered.
If this is true, does this disqualify the owner for a ShortSale with Wells Fargo.
It may disqualify the Owner from short sale consideration... but since every lender has different ss criteria... you won't know unless/until you ask... or if they find out.
FHA is strict... but with others... less strict.
There are ways to circumvent the non owner occupancy status.
[addsig]
What are the ways to circumvent the non owner occupancy status?
Quote:
On 2004-08-28 17:40, TheShortSalePro wrote:
It may disqualify the Owner from short sale consideration... but since every lender has different ss criteria... you won't know unless/until you ask... or if they find out.
FHA is strict... but with others... less strict.
There are ways to circumvent the non owner occupancy status.
Perhaps the major obstacle isn't non owner occupancy... but that the mortgagor has deeded away the home...
Based upon what you have disclosed... this is not a short sale candidate.