REO, Bank Owned Foreclosures - What am I buying?

There are auction sales, foreclosure bus tours, seminars selling books and tapes on how to buy a foreclosure with no money down (*not sure where they are getting their loans) and a multitude of other sources that pop up on radio, tv and in the mail.

First, you have to decide are you going to live in it or use it as a rental property. If you are going to buy it as an investment do you want to be a landlord or use a property manager. If you live out of state you must have someone on emergency contact with in 60 miles. A licensed real estate agent, and permitted property manager will take care of that + collect your rent, screen tenants, work with the HOA and be your presence looking out for your investment.

If you decide to live in the property you need to evaluate your property differently. If you have kids checking the school zones, crime rates, master planned assesments, etc. A big question is: "Is this a community I want to live in?" Just because I can buy this cheap house does it meet my overall goals.

These are all questions you need to ask yourself and consult with a licensed real estate agent, REALTOR® and property manager with experience.

Foreclosure slow - Sales Pickup

The foreclosure market in Las Vegas has slowed down allowing buying to come off the fences and pickup inventory at 50% of what it was 5 years ago. Homes that sold in 2006 for $680k you can now purchase at $250k on 1/3 acre lots.

There is a lot of research out there that another wave of foreclosures is coming not ARMs resetting but owners who cannot justify paying a mortgage on a $900k property while their neighbor who just moved in is paying for the same property $400k. It dosent make sense.

The question is "What would Trump do?"

Trump Tower Renting as Apartments

Trump Tower is starting a rental program to mix in with it's owner occupied units and condo hotel program. You will be able to rent out units on a one year lease for big bucks. Studios are starting at $1700 month, the shorter the lease the higher the premium which is standard for corporate furnished housing.

Yes, corporate offices everywhere will turn to this type of rental unit especially if they rotate personnel out and need them to be close to the strip. No need for a rental car, great location and they an write off the lease to the company while providing this super perk to their employees.

More details to come.

New Hope for Renters in Foreclosed Properties

Fannie Mae annouced a new program allowing renters to stay in their homes that they rent that are in foreclosure which means no eviction process. We get calls weekly from renters who are shocked to find out that their landlord is not paying the mortgage and then the foreclosure process hits. Read more about this directly on Fannie Mae.