BANK REO Properties are not listed at a central location as
lender's have several different methods for disposing of their
repossessed homes but here are the foreclosed property websites for
several of the larger banks:
Chase:
http://mortgage.chase.com/pages/other/co_properties_landing.jsp
Bank of America:
http://www.countrywide.com/purchase/f_reo.asp
Premiere Asset Services (Wells Fargo):
http://www.pasreo.com/pasreo/public/propertySearch.do
Regions:
http://www.regions.com/personal_banking/property_for_sale.rf
U.S. Bank:
http://www.usbank.com/cgi_w/cfm/personal/products_and_services/reoPropertiesReq.cfm
Wachovia:
http://reo.wachovia.com
How Do Bank REO Properties Become HUD REO
Properties?
The Department of Veteran Affairs and the United States
Department of Agriculture also have a similar process.
The US Department of Housing and Urban Development's (HUD) Real Estate Owned (REO)
properties are a result of the Federal Housing Administration (FHA)
paying a claim to a lending institution on a foreclosed property
which was financed with FHA Insured Mortgage and the lender
transferring ownership of the property to HUD. Typically, title to
the property is not transferred (or the claim paid) until the
previous owner is evicted from the property. Normal, after the home
is transferred to HUD the property
will go up for auction the their website (shown above).
Almost any REO Property you look at will have room for improvement. But the
more that needs to be done to a home, the less you’re going to have
to pay for it. HUD Homes, because they’re sold in “as-is” condition,
can often be a great, affordable opportunity for the fixer-upper.
Many are in fine neighborhoods and offer outstanding values. And
while some HUD Homes do qualify as “handyman specials,” many are in
very good condition.
HUD does not warrant the condition of its properties, but will give
you the information it has about the condition of the property
you’re interested in. You can use this information in formulating
your bid.
The appraisal process is HUD’s primary tool for determining the
listing price (recommend starting bid) of the properties. FHA appraisers provide
preliminary verification that FHA’s Minimum Property Requirements (MPR)
for existing housing and Minimum Property Standards (MPS) for new
construction have been met for properties evaluated as “insurable”
or “insurable with repair escrow” prior to being listed for sale.
Do
REO properties qualify for FHA Loans (FHA Mortgage Insurance)?
These definitions are
not for Home Owner's Insurance. They refer to the availability an
FHA Insured Mortgage.
The following definitions shall apply to the
mortgage insurability of a
property:
Statement of
Insurability
Insurable: Properties marketed as "insurable" are those that meet
FHA's Minimum Property Requirements (MPR) for existing housing and
Minimum Property Standards (MPS) for new construction at the time of
the appraisal in their as-is condition without repairs being
necessary.
Insurable With Repair Escrow: A property that requires no more than
$5,000 for repairs to meet FHA's MPR or MPS as estimated by the PCR
and as reviewed and determined to be reasonable by the appraiser, is
eligible to be marketed for sale in its as-is condition with FHA
mortgage insurance available, provided the purchaser(s) establishes
a cash escrow to ensure the completion of the required repairs.
Purchaser(s) are permitted to include in the mortgage an amount
equal to 110% of the estimated cost of the repairs.
Uninsurable: Properties offered for sale "Uninsured" do not meet, in
their as-is condition, FHA's MPR or MPS and the cost of repairs
identified by the appraiser, to meet MPR or MPS, are estimated to
exceed $5,000. Uninsurable properties may qualify for FHA’s Section
203(k) rehabilitation program and, depending upon the scope and
extent of repairs needed, the Streamlined (k) Limited Repair
Program.
203k Rehabilitation Mortgage Insurance can fill a unique and
important need for buyers of "uninsurable" properties. Buyers can
borrow the money to make repairs to the property. They repay these
funds later, as part of their mortgage. Be aware that 203(K) funds
are not available for all houses in all areas.
USDA also has some loan programs: Section 502 Single Family
Housing Loan Programs
502 Direct Loans
Rural Housing Direct Loans are loans that are directly funded by the
Government.
The Section 502 Direct Loan Program provides low and very-low
income families the opportunity to acquire, build, rehabilitate, or
improve single family dwellings in rural areas.
Under this program,
applicants receive a loan directly from USDA Rural Development. The
standard term for a Section 502 loan is 33 years. However, loans may
be made for a shorter term, and in some cases for 38 years. Each
loan is made at a fixed rate established by the Agency and payment
subsidies are available to many (income eligible) borrowers to
reduce monthly loan payments.
502 Guaranteed Loans
If your income is too high to qualify for a Section 502 Direct
Single Family Housing Loan, you may qualify for a Section 502
Guaranteed Housing Loan. These are loans made by participating
lenders, such as banks or credit unions. USDA Rural Development
issues a loan note guaranteed to the lender, which enables them to
make loans to families that they would otherwise be unable to serve.
These loans are made at a fixed rate of interest for 30 years and
there is no limit on seller concessions. The lender may loan up to
100% of the appraised value; therefore, closing costs and repairs
can often be included in the loan. Private mortgage insurance (PMI)
is not required, but a small one time guaranteed fee is required at
closing.
Please note that applicants may be eligible for adjustments in
annual income. Contact your local Rural Development office for more
details.
For the most current information visit
http://www.hud.gov and
http://www.usda.gov |
