Tag Archive: REO


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What is foreclosure?

A foreclosure is a state when a property is being sold because the owner fails to pay the principals or interests of the property.

Stages of foreclosure

Notice of Default (NOD):

When a owner fails to pay the mortgage the lender will ask for NOD. This will in effect put the home owner in notice that there property will enter a state of foreclosure

Notice of Sale:

If the home owner doest not fix the NOD then they will the home owner will receive a notice of sale. This notice will be then attached to the property and it will go to the County record’s Office. County record office will put this foreclosed property in local news papers over a period of three weeks.

Trustee Sale:

They will happen at the local county court house at the designated time in Notice of Sale. At the trustee sale the property is sold to the highest bidder, who must pay the bid price in cash.

What is a foreclosure auction?

Once the property is in auction the lender sets the price for the property, which is also called as the opining bid

The opening bid is usually decided by the amount of the loan balance, interest accrued, and any other additional fees associated with the attorneys dealt with Trustee Sale.

When does REO come into action?

In case of where there are no bids higher than opening bids than the property is purchased by the attorney conducting the sale, for the lender. If this case occurs then the property becomes an REO or Real Estate Owned. In most of the cases these occurs because the property is not worth the price of the opening bids or the total amount owed to a bank or lender.

When you purchase a property at one of these sales all liens other than the property taxes are wiped out for the customer. When a customer purchases a REO a.k.a.Bank Owned property , you will typically receive the property with a clean title.

This is a great turn key property. it is bank owned so you will get a great price. great location, great conditon, 3 bedrooms, 1.5 bathrooms
very large rooms. This is a great place to live or investment.

FOR MORE info call 516-798-300 ex 221 ask for JOHN or email john@nyonlinerealty.com

 116-51 218th st 
 Cambria Heights

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image 1449687942-1 Great Street

If you are looking for an absolute steal on an REO property look no further. This 3 bedroom split just hit the market and will be gone by the end of the week. Unbelievable price at $170,000 this fantastic Bay Shore home is waiting for you. 3 Full Bedrooms with Master Suite complete with Private Bathroom and Jacuzzi. 3 Full Bathrooms, Hardwood Floors throughout, Eat In Kitchen, Den/Family Room, Private Driveway, Partially Finished Basement complete with Separte Entrance Full Bath and Washer/Dryer. The property measures 80 x 130.

If you are interested in this unbelievable deal ACT NOW because it wouldnt last long. Contact us directly at 516-798-3000 Ext 221 or email john@nyonlinerealty.com.

1330 Elayne Ave (google map) (yahoo map)

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“Because NYOR feels that communication is key, and that we communicate with the bank every step of the way. NYOR keeps the banks informed on everything that goes on with each asset!”

Lynne Galaway
Lead REO Coordinator

“Because NYOR is the one stop shop which makes it easy for the bank knowing that their asset is being taken care of each step of the way until it is sold.”

Bobby Mahatari  
REO Specialist

Because NYOR Does WHATEVER IT TAKES to get the job done!”

Elizabeth Dupuy
Field Agent

“Because NYOR prides itself on professional fast and courteous service to get your asset sold for the most money within the least amount of time. Give us a try and experience the difference!”

Antoinette Sarno
REO Coordinator

Give us a call today to help you find a property!
516.798.3000

REO Marketing and Disposition:

Asset Management

  • Accompany the Sheriff on Evictions.
  • Secure & Re-Key the property.
  • Have property winterized.
  • Ready the property for marketing including making repairs and improvements.
  • Pay the bills on all of the above and wait up to 90 days for reimbursements.
  • Pre/Post Foreclosure Processing.
  • Determining Occupancy Status to make a recommendation for either an Unlawful Detainer action to be commenced or continuation of tenancy relationship.
  • Determining if a Cash for Keys or similar voluntary vacancy arrangement can be structured.
  • Monitoring on-going evictions and occupancy status on a weekly basis.
  • Loss Mitigation.
  • Initiating property preservations, remediation, maintenance services and storage.
  • Turning on utilities in our name, gardening and pool maintenance.
  • Determining if properties are located in homeowner’s associations & obtaining status of dues & assessments.
  • Obtaining updated title reports.
  • Providing an internet based management reporting system to allow Investors/Receivers to instantly view real-time information & photos of their assets.
  • Providing constant communication with Investors/Receivers regarding property and occupancy status.
  • Determining the risk-cost benefit for filling vacancies with qualified new tenants and maintaining property management services.
  • Handle vandalism, theft, squatters, animals and arson.

 

Marketing

  • Conducting Property Valuations including Broker Price Options (BPO), appraisals and contractor bids for possible capital improvements.
  • Maintaining a nationwide network of qualified real estate agents, contractors, attorneys, escrow and title agencies.
  • Providing detailed monthly reporting during the marketing stage.
  • Providing offer summaries and negotiations for consideration of acceptance.
  • Initiating escrow and title services for a timely property settlement.
  • Preparing client-specific marketing strategies for list price determination and adjustments.
  • Providing closing coordination, follow-up on all sales proceeds, collection of outstanding bills.
  • Marketing Prep-Work-photos, MLS data sheets, info box flyers, write ads, etc.
  • List the property.
  • Schedule showings.
  • Educate Co-op agents.
  • Submit offers.
  • Coordinate all details of the closing and keep all parties up to date.

 

Relocation

 

  • Providing corporate clients and their employees with comprehensive relocation solutions to organize and simplify company and employee moves.

CALL US TODAY 516.798.3000

REO Market Heating Up

The Wall Street Journal has this on foreclosures. “As a weak housing market nudges the foreclosure rate higher, next year is looking promising for investors in distressed real estate. So far, the U.S. housing slump hasn’t produced a bonanza for such investors, but lenders stuck with foreclosed property are becoming more inclined to slash prices or sell properties through auctions, industry experts say.”

“‘We’re all going to have to be more creative in the next 12 to 24 months’ in selling foreclosed homes, says Chad Neel. Mr. Neel’s company helps lenders manage and sell foreclosed homes.”

“Williams & Williams Inc., a Tulsa-based auctioneer, says its sales of foreclosed homes will nearly double this year to about 5,060. CEO Dean Williams expects another near doubling of sales in 2007.”

“Dallas-based Hudson & Marshall Inc. expects its auction sales of foreclosed properties to total about 4,800 this year, up 23% from 2005. David Webb, co-owner of the auction company, believes sales will rise at least 20% in 2007.”

“The auction firms say their busiest auction markets recently have included Michigan, Ohio, Indiana, Pennsylvania, Texas and Colorado. ‘Word on the street is that California, Florida and Arizona will also be very active in the next 12 months,’ Mr. Webb says.”

“In the first half of 2006, REO properties accounted for 3.1% of all U.S. home sales, up from 2.4% two years earlier, according to a study. The study found that those homes sold at a median discount of 14% to their estimated value in the first half, compared with 12.5% two years before. The discounts reflect the gap between the actual sale price for the homes and the value estimated by a computer model, which takes into account sales of comparable homes nearby and price trends.”

“It has taken a while for foreclosures to mount. The housing boom of recent years reduced foreclosure rates because most people who fell behind on their loans could refinance or quickly sell their homes for at least enough to pay off the loans.”

How to buy a foreclosed home

In today’s market there are plenty of opportunities to buy foreclosed homes at a great price. A recent article by cnn.com lends a helping hands to buyers and gives advice for buying a foreclosed home. For any questions on this or additional advice our REO department has all your answers, call 516-798-3000 to become a buyer of an REO property. Check out the article:

Hoping to score a house on the cheap by buying a foreclosed property? There are good deals out there, but the process is complicated and risky. Here’s what you need to know.

There are certainly plenty of foreclosed homes on the market. In California, 40% of existing homes sold in the second quarter were foreclosures, according to DataQuick, a provider of real estate information, compared with 5.4% a year earlier.

Indeed, Fannie Mae CEO Daniel Mudd said Friday that the company is pushing hard to sell more foreclosed properties, to get them off the books. “I don’t think this is a time to be holding onto REOs and hoping for a better day,” he said.

Steve Dexter, author of “Prospering in the Rising Wave of Foreclosures,” has bought dozens of foreclosed homes and thinks now is a good time to dive in. “It’s the best way to buy, and it’s time to buy again,” said

There are three different stages of foreclosure, each of which presents different opportunities for buyers. The first step is to figure out which one makes the most sense for you.

Pre-foreclosure

A home goes into pre-foreclosure when a borrower has fallen behind on his payments, but the house has yet to be auctioned off.

Buyers can find pre-foreclosures by poring over the delinquency notices that lenders file with county courthouses when a borrower misses a payment.

Armed with prospects, buyers should go scouting. If they see homes they like, they should contact the owners to see if they want to sell.

“You call them or knock on their doors and say, ‘I know you’re having a problem and I think I can help you,’ ” said Alexis McGee, co-founder of Foreclosures.com.

McGee only buys when she figures she can make a profit of 30% or more; marketing and other expenses wipe out about half that by the time she resells. But people buying a house to live in might be happy with a 20% discount from market value.

Cold calling and making low-ball offers on people’s homes can be difficult: Some owners are emotional, even angry. Many are trying to hold onto their houses and don’t appreciate what they consider scavengers sniffing around.

“But you’re not taking advantage of these homeowners,” said Duane LeGate, president of HouseBuyerNetwork.com, which puts together buyers and sellers of distressed properties. “All many of them want is financial relief from bad mortgages, and you’re offering it.”

Indeed, some owners are open to doing what’s called a short sale, which is when a buyer pays less for a house than the mortgage that is owed on it. Lenders must agree to a short sale, and will then forgive the rest of the debt.

Often, banks are reluctant to do such deals, since it requires them to take a loss. It can take months and a lot of badgering before a deal goes through, and not every buyer is up for that kind of hassle.

But as the housing market deteriorates, lenders are warming up to short sales, according to Foreclosure.com founder Brad Geisen. “It makes a lot more financial sense for them to liquidate early rather than go through the foreclosure process,” he said, which can cost lenders about $50,000.

Gabe Cera recently bought one through an associate of LeGate, Raul Pineyro, owner of Cacophony Group Real Estate Services in Dade County, Fla. Cera purchased a four-bed, three-bath in Miami for about $60,000 less than what the owner’s mortgage was worth.

“I’m very satisfied,” Cera said. “The transaction was very smooth and quick and I think I saved a lot of money.”

In buying any pre-foreclosure, LeGate advises buyers to not be turned off by dirty carpets or ugly paint jobs. That’s where the best deals are.

“Anybody can go the Home Depot (HD, Fortune 500) and buy some paint and a new rug,” he said.

Sheriffs’ sales

In the next stage of foreclosure, homes in default are auctioned off on the county courthouse steps. These homes can be real bargains, but the process is a crap shoot.

Bidders can’t inspect the property, so there’s no telling how much work it needs. And there is also no telling what kind of liens there are against the home, due to unpaid taxes and so forth, which can also jack up the cost of these homes. Finally, Buyers need to come with cash, ready to put 10%-20% down on the spot, and able to pony up the rest in a matter of days.

“If you want to buy on the courthouse steps,” said LeGate, “you’d better be a pro.”

Even after a purchase, a deal can fall through if the current owner can come up with enough cash to repay the buyer the amount of the winning bid.

LeGate himself has bought several homes at auction, with mixed results.

“The first time, I bought, renovated and sold the house all within 29 days and made a killing,” he said. “I thought I was a mini-Donald Trump. The second time, the previous owner poured cement into the pipes before he left and when I turned on the water, it clogged everything. I lost more on the second house than I made on the first.”

Post-foreclosure

After a lender takes back a house, the property goes back on the market as what’s called an REO (real estate owned) property. These are treated like ordinary sales, listed with a broker. Typically, bargains are not as sharp.

Author Steve Dexter advises house hunters to go to the Web sites of all the major lenders and look for REOs in their communities. Alternatively, “Get a young, hungry real estate agent who’s screening REOs all the time and put them to work for you,” he said. Foreclosures for sale may also be found on the sites of Freddie Mac (FRE, Fortune 500) and Fannie Mae (FNM, Fortune 500), as well as eBay (EBAY, Fortune 500).

Dexter prefers to buy REOs because the process is so clean; the title is clear and the property is delivered vacant, even if the prices aren’t as good. He says one bank manager told him he usually sells REOs for 95% of listing prices, on average.

“You might not think that’s too great for buyers,” said Dexter, “but the listing prices are lower [than market value],” usually by 10% or more. The total discounts often exceed 15%.

Another way to buy an REO is through an REO auction. As bank portfolios of these properties have swollen, they’ve started to unload them en masse. Pam McKissick, chief operating officer of Williams & Williams, an auction company based in Tulsa, said her company buys big portfolios of post-foreclosure properties from lenders and then auctions them to individual buyers.

The REOs that Williams & Williams pick up are usually sold within 30 days; successful bids can be quite low. “It’s a very rapid process,” said McKissick, ” You want to put a family back into a home quickly and bring the neighborhood back. This does that.” To top of page