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Apple Valley REO & Foreclosure Update
Here is a market update for Apple Valley REO and Foreclosure listings.
Active Listings
- Currently there are 67 listings on the MLS in Apple Valley that are REO
- Of those 67 Listings, 36 are single family homes
- 2 condos in Apple Valley are REO
- 29 townhomes are REO
- Prices range from $64,900 to $499,900
Listings Sold
Four listings sold have sold in Apple Valley during the month of September that were REO. Two single family homes and two townhomes.
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Get a home warranty on a REO or Foreclosure
So what is the big deal…
Having a home warranty on a REO property is a good idea. Unless you are buying the property with the thoughts of tearing everything apart, then maybe not so much. With all the bank owned listings around here, who knows what the previous owner did to the house as it was going through foreclosure, most people just don’t care and they quit with the basic upkeep of the house.
Most REO properties sit vacant for some time and it is hard to tell what will really work or not. You purchase the property ‘As Is’ from the bank, so having a home warranty will take some of the stress out of the purchase of the house.
Different home warranties offer different coverage and services. Most home warranties run for a year with the opportunity to extend the warranty as the first year goes on. The services covered range from basic to extensive. It is important to point out that not all things in the home are covered. Most system components along with appliances are covered with optional add ons depending on the company.
Put the $$$ down
Not so fast, ever thought about having the bank pay for it? If they want to sell the home they will pay for it, but you never know without asking. Make sure to include it in the initial purchase agreement.
Having a home warranty will definitely protect your investment against any breakdowns on covered items.
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Low Balling on a REO or Foreclosure…
Well… Yes and No
Now that I have your attention, can you really lowball a bank on one of their properties and win? It can happen, you don’t know until you try. The question is, how bad do you want the house? You also want a good deal but banks are well informed when they list a house.
The usually have a BPO or Broker Price Opinion up front so they have a idea of what the market is doing, even though they are probably a couple of states away. Some banks even hire an appraiser to also give the value back to the bank.
So where do you start?
If you are going to make a low offer, have some comparables to support your offer. Do your homework in the area, compare some traditional homes for sale to REO properties that are also for sale. Some REO properties 10-30% less in some areas, I’m just saying, not all areas but some.
Make an offer that you think is right, what you are willing to pay for the property. Banks will usually comeback with counters, but stick to your guns and say it is your highest and best. Make sure your financing is in line or cash. Just because an offer is cash doesn’t always mean they will think it is better, it’s all about the bottom line.
Factors that might influence
Days on market is always a factor, if the house has been on the market for ages. They just might be willing to part with the property pretty quick. Most lenders like a non contingent buyer that can close fast and has no strings attached. The biggest of course is the bottom line, it all has to look good on their books.
Sometimes it seem like there is no rhyme or reason to the madness, that is for sure. They might accept one offer that doesn’t make sense or deny another offer that is solid.
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Loan Servicers Numbers for Hope Now
Below is a list of numbers for loan servicers that participate in Hope Now
Aurora Loan Services 800-550-0509
Avelo Mortgage, LLC. 866-992-8356
Bank of America 800-846-2222
Carrington Mortgage Services 800-790-9502
CitiFinancial/Citi Trust Bank 800-422-1498
CitiMortgage Conv/FNMA 800-695-0384
CitiMortgage/Gov’t & Freddie Mac 866-272-4749
CitiResidential Customer Care 800-430-5262
Countrywide Home Loans 800-669-6650
EMC Mortgage, Inc. 877-362-6631
First Horizon Home Loans 800-364-7662
GMAC/Homecomings/ResCap 800-799-9250
Home Loan Services, Inc. (d/b/a First Franklin Loan Services and NationPoint Loan Services) 800-500-5022
HomEq Servicing 888-270-6663
HSBC Consumer Lending 800-333-5848
HSBC Mortgage Services 800-365-6730
HSBC Mortgage Corporation 888-648-3124
IndyMac Bank 800-880-6848
JPMorgan Chase Prime Loans 800-446-8939
JPMorgan Chase Non-Prime 877-838-1882
JPMorgan Chase Home Equity 866-582-5208
JPMorgan Chase Default HPO Help Line 866-345-4676
Litton Loan Servicing 800-999-8501
National City Mortgage Corporation 800-523-8654
Nationstar Mortgage, LLC. 888-480-2432
Ocwen Loan Servicing, LLC. 877-596-8580
Option One Mortgage Corporation 888-275-2648
Saxon Mortgage Services 888-325-3502
Select Portfolio Servicing 888-818-6032
SunTrust Mortgage, Inc. 800-443-1032
Washington Mutual, Inc. 866-926-8937
Wells Fargo Home Mortgage 877-216-8448
Wells Fargo Financial 800-275-9254
Wilshire Credit Corporation 888-917-1050
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Good find on bank owned foreclosed homes becoming cheaper
With the amount of foreclosed bank owned homes on the market, here is a good article on Newsweek about lenders making homes even cheaper
Bank Owned homes around the Twin Cities are also noticeably a lot less than traditional homes that are for sale. Most REO homes are selling at discounts between 15% to 30% and sometimes more. Banks are starting to get a lot of inventory and there portfolios are only expected to grow.
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The problems with some REO inspections…
So, you just made an offer on an REO foreclosure property and things are moving right along. Wait, that is until you get to the inspection and find out that water can’t be turned on or any other mechanicals for that matter. Stuck, a little worried
What do you do?
This part of the inspection should be made clear before you write the offer on the property. Whether or not the water will be turned on or access to test out the mechanicals will be granted. If they are turned on you’re in the clear. If not however, you can always ask for them to be turned on if there isn’t something immediately wrong with them.
If a home is winterized, the bank might not want to pay for the property to be dewinterized and then it is solely up to the buyer to pay the fees.
Good luck getting an inspector to turn on things on
Before you hire an inspector, they will make clear that they will not turn on anything. Why? Huge liability issues if something goes wrong because they flipped or switch or turned a valve.
If something goes wrong it all comes back them and most insurance providers that inspectors have won’t cover that error. I have heard stories of inspectors being set up so when they turn something on it backfires, not good.
As is means As is
This came about recently in a transaction, at this point it is all up to the buyer. We found a great property for an investment opportunity but the water would not be turned on for the inspection. When we wrote the offer we were aware of water damage because the basement carpet had been removed, water was noticeable when we went through the house.
The client chose not to turn on the water during the inspection not wanting to risk further damage and being liable for it. It is somewhat obvious that a pipe that is broken somewhere but it won’t be known where until the water is turned on.
Just some risks to be aware of when buying a REO foreclosure and inspection issues that may come along with them.
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Will banks pay for assessments on a REO property?
Where to find assessments?
When banks take back properties in the foreclosure process, there is all sorts of unpaid bills on them. One thing that a potential buyer might not be aware of upfront are assessments that are levied on the property. First things first, where can you find information on this? You can always find this information out by contacting the county office to check into assessments on the property, some county websites are also providing information on this now as well.
Will they or won’t they?
In a regular purchase agreement, sellers can agree to take care of any assessments or pending assessments until the house closes. Banks on the other hands have contracts that to take precedent to a regular purchase agreement. This is where you can find out if they will or not.
Make sure this part of the contract is not taken lightly, it can cost you thousands if you are unaware of assessments. If they do not pay any assessments, make sure that it is negotiated into the contract that they will pay for assessments. Most banks won’t let a sale slide because of something this silly that cannot be taken care of on there behalf.
Be confident in asking for assessments to be paid, banks don’t hold any emotional ties to the property. It’s an added cost that shouldn’t be taken on by the buyer. Just ask and you probably will receive.
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Welcome to Minnesota REO
Welcome to Minnesota REO Buyers, your source for REO properties and foreclosures in the Twin Cities. There is plenty going on here so please stop back for this website is a work in progress. We hope this website will be an area were you can better understand the REO process whether it is buying or selling.
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