You may not be aware that buying an REO, a bank owned property, is quite a different process then buying a property the old fashioned way, and it is extremely important that your Realtor understands the difference. Let me tell you why if your Realtor doesn’t know the vast difference between the two, how it can cost you a lot of money, and possibly cause you to all together lose your property.
Banks have complete control when it comes to a bank owned property. They make their own rules and follow no disclosure requirements. Typically they will have a potential client sign something called an addendum, which basically takes away the protections a buyer may have, and gives them sole power in the decision making.
They will give you a timeline you have to follow, or more likely then not there will be repercussions. They really unfair thing about it, is that they don’t have to respond to anything or anybody until they are good and ready. For an example, I myself have a bank owned property being held in escrow at this moment, on which I was approved for well over a month ago. However, the bank didn’t even open my escrow until almost three weeks into the thirty day stint.
We didn’t get a copy of the signed contract or bank addendum until three weeks into the deal. Of course, the bank addendum we signed at the beginning of the transaction had us agree to pay a $100.00 per day per Diem for every day we went over the 30 days agreed upon in the contract.
They didn’t help us in anyway to meet our deadlines either. As you may already be aware, most short sales do not have a successful closing. Typically this happens because the listing agent that takes on the contract isn’t familiar with how a short sale works, but still takes the home anyway. In the same breath, REO’s can also turn out the same. In my case, the listing agent was very confident that he had all of his ducks in a row, and the bank was ready to close.
Submitted by: Bill Stein knows all about shopping new homes for sale plus properties overall. Read his other articles on the internet.
Buying a bank owned (REO) property is a much different process than a traditional listing and it is imperative that your Realtor know the difference. If your Realtor is not aware of the differences, they could not only cause you to lose the property, but also cost you money in the process. Let me explain.
Banks hold all the cards in a bank owned transaction. They don’t have disclosure requirements and set all the rules. They usually make the buyer sign an addendum that basically takes away most of the buyers protections and puts the ball squarely in the banks court.
They set out a timeline you, as a buyer, have to meet or face the consequences. While they don’t have to deliver anything until they feel like it. For instance, I have a bank owned property in escrow right now that I got approval on almost a month ago. Guess what? The bank didn’t open escrow until three weeks into the 30 day time period.
We didn’t even receive a copy of the contract or addendum until we were already three weeks in. It just so happens that the addendum we had signed way back at the beginning of the process had a clause that we pay $100 per day per diem for every day that went past the first thirty days.
Of course the bank took their time, and never completed anything in a timely fashion, causing us to not be able to meet the deadline. As you may already know, the majority of short sales do not close with a hitch. A short sale doesn’t have to be a terrible experience, but if your Realtor doesn’t put in the time and effort, it will end up being just that. By the same token, REO’s can end up the same way. In my case however, my Realtor assured me that everything was moving along smoothly, and we were just waiting for a response from the bank.
Article submitter Bill Stein has much experience shopping new homes for sale plus properties overall. Read his other posts online.
It is very important that your Realtor knows the vast difference between a REO, a bank owned property, and a normal listing. If your Realtor isn’t aware of the differences between the two, you could end up losing your money, or worse yet, the property you desired to purchase. Let me explain how this could happen.
When a bank owns a property, they have complete control over the situation. They have the ability to make the rules and do not have to follow any disclosure requirements. The bank will typically have you, the buyer, sign an addendum which will give them full disclosure to the process, and leave you with no protections.
The bank will set a timeline that they demand you stay on top of, or they will enforce consequences on you. The odd thing is that they can take all the time they need before they deliver any type of response to you. Almost a month ago, I was approved and have been holding money in escrow for a bank owned property. It took the bank three weeks into the thirty-day period before they even opened my escrow.
We didn’t get a copy of the signed contract or bank addendum until three weeks into the deal. Of course, the bank addendum we signed at the beginning of the transaction had us agree to pay a $100.00 per day per Diem for every day we went over the 30 days agreed upon in the contract.
Then they did nothing on time to make it possible for us to make the deadline. As many of you know, the majority of short sales do not close successfully. This is usually due to the listing agent not knowing how to do them, but taking the listing anyways. If the listing agent doesn’t put in all the work ahead of time, a short sale is a nightmare. REO’s can be the same. In this case, the listing agent assured me that he had done all the footwork and the bank was ready to move.
Submitted by: Bill Stein has much experience shopping new homes for sale plus properties in general. Check out his other posts online.
Did you know you can go online right now and view credit report information for your name? All you need is your social security number and answers to a few personal questions from your past, and you can see everything lenders and creditors see when they view your credit, plus more! Today, your handshake means nothing and your credit means everything. That is why you need to protect you name.
Just checking your name is even not good enough today. This is because there may be alias names listed for you on your credit report that you have never legally gone by. This is because advertisers and creditors may get your name wrong and when they file that name under your social security number it becomes connected to you. That is just one reason to check your history online. You can dispute wrong names.
If you think everything is handled by computers that never make mistakes these days, you may be surprised to realize that people still sit on the other end of those computers. Mistakes are made every single day and the only way to catch them and prevent them from costing you money is to check your report personally.
So, how do you do this? First of all, realize that you are entitled to one free copy of your credit report from all three reporting bureaus every year. You can look at all three versions of your report at once through websites that allow you to prove your identity and access them online, or you can look at one every few months so you have your eye on the records throughout the year.
Both of these options are flawed. If you spread your viewing of the three reports across the year, you may miss something that only shows up one of the reports. Most people do have differences between reports because some businesses may not report to all three collecting agencies. You will miss something that could be important if you spread them out.
Yet, if you decide to look at them all at once you cannot do it again for a year unless you pay for the access. This leaves your name vulnerable for a solid year.
So, what is the solution? The safest and smartest way to handle this is to find a reputable service that will allow you to view credit report information year round for a small fee. Some will even watch over your name and notify you whenever anyone tries to use your credit or inquires into your credit.
People with a bad credit ratings will struggle to get approved from the mainstream the mainstream lenders. For people in such circumstances a form of ‘no credit check loan’ could be a solution to their financial problems. Credit can be rebuilt through this form of lending by successfully meeting their financial obligations. This method of borrowing money is not affected by having less than perfect credit score, and in fact this method of un-secured loan can assist getting credit rebuilt.
No credit check loans do require the person wanting to take out the loan to have certain documents present when trying to obtain this type of loan. As with most other types of loans you must have proof of income (some places may require a certain length of employment), proof of residency and of course a checking account. These types of loans are what is called an easy loan. You basically show what is required, sign and leave with the money.
A variation of no credit check borrowing is where the money is loaned over a very short period typically 14days until the borrower’s next payday hence why they are called ‘cash to payday loans’. Prior to agreeing and signing for a loan, the lender should explain the credit terms including the interest rates and charges. You will also be required to have a current checking account so that when the agreed loan payments are due they will be deducted from your bank account after you have been paid your next paycheck. This type of loan is a short term solution best suited to an unforeseen cash flow problem and should not been seen as a long term solution to money problems.
Sourcing the most suitable type of no credit check loan is a relatively simple process, by assessing your current financial requirements and affordable repayment, a suitable lender and method of borrowing can be sought. People with a bad credit history make this method of lending a suitable option.
Banks that are prepared to lend you the money will charge high rates of interest and you will be tied to them for the duration of the loan, with them having the powers to deduct repayments from your paycheck if you don’t keep up with the loan repayment. So you may contemplate borrowing from cash advance companies and paycheck loan companies.
Another variation of this type of lending is the ‘no credit check student loans’. For students looking to fund themselves through college financial demands and circumstances may require that a student consider this type of borrowing. No credit check student loans are ideal when other financial grants are not available or do not cover a particular borrowing need. A cosigner may be required by the lender to potentially cover any payments should he student get in trouble meeting payments. Students should be aware that this type of borrowing comes with a higher interest rate but for students with no credit at all this can be the only option available to them.
Tenants who are having difficulties meeting their rent payments have another form of no credit check loans available to them, these are commonly referred to as ‘loans for tenants’. They are just another form of short term borrowing that can repaid to the lender over the short term (just like payday loans) and they can be used by the borrower to meet their tenant payments.
In summary care should be taken when choosing the appropriate method of no credit check loans. As with any type of money lending the borrower should do their homework prior to signing any agreement in order that they are fully aware of all the specifics and small print of any agreement entered into. This will avoid pain in the long run as the failure to appreciate the repayments terms and fees could result in the borrower being unable to successfully make their financial obligations further increasing their credit woes.
