A small San Diego based bank that deals with investing in real estate, Silver Portal Capital LLC, is looking to raise around a hundred and fifty million dollars buy homes part of the San Diego foreclosures.
With a majority of the lenders now treading carefully in the debris that the sub-prime mortgage storm has created, Silver portal takes to walking on the road less traveled.
Prices of foreclosure properties across the country have continued to fall in the recent past.
With first time home owners getting a $7500 loan in the form of tax credit, as part of the housing bill signed last week by President Bush, there would be an increase in the number of people who would wish to buy their first home. Foreclosure properties should be looked at as a viable choice.
REO properties that exist with the bank are there because when the bidding at the courthouse takes place as part of foreclosure proceedings for the property in question, no bid is received to cover the minimum amount that exists on the mortgage. Once the property is with the bank, they have to incur a regular expense to maintain the property. Banks are often keen to get properties off their hands, even if it means that they are getting lesser for the home than the existing market price. Another good thing about buying an REO property is that the buyer does not have to bother about checking on other loans taken out on the property or any pending taxes, as these would be taken care of by the Bank.
There are fair amounts of listing agents that deal only in REO properties. The internet and newspapers also are a source of information for the same.
Houses can also be bought as short-sales, where when a property is facing foreclosure, the home owner decides to sell the property and pay the remainder of their existing loans off.
Extra care needs to be taken if one chooses to buy HUD homes or homes at auctions. These properties are generally sold as is, and an inspection of the home before making an offer is always suggested.
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Written by Alex Rolim.
