vProperties, What Are They?

You have probably heard of REO properties, but do you know exactly what they are? Simply put, they are properties that were foreclosed upon, didn't sell at public auction and were subsequently returned to the bank. REO properties aren't always just houses; any property, including multiple rental units, commercial buildings and vacant land can be reclaimed by the bank.
Investors can often find REO properties listed on a bank's website; however, you have to negotiate with a loss mitigator in order to make a purpose. Once you contact the loss mitigator and set up an appointment to view the investment property, you will work directly with that person if you decide to make an offer.
Unlike other types of investment property for sale, when dealing with a loss mitigator at a bank, the process can take a while. No matter how good of a relationship you have with him or her, it's very unlikely that your first offer on the REO property will be accepted. Remember that the bank has already lost money on the property, and their goal isn't only to get rid of the property, it's also to make a profit.
Purchasing REO properties directly from a bank can be a huge hassle. Many would be investors choose to buy them from private investors. Sometimes going this route can not only be a much simpler process, but can also be a less expensive path. You would have to find someone who deals in purchasing bank portfolios in bulk (which means they get the properties at wholesale prices). Because they have the advantage of purchasing wholesale properties, you can often get an excellent deal, sometimes as low as 30% under the property's market value.
Unfortunately, when people find out their house is going to be foreclosed on, they often destroy the property, or at least do significant damage. For this reason, REO properties often need repairs and sometimes even some remodeling; therefore, it's definitely helpful if you can get the desired property through an independent investor and save that 30%.
Of course, you also don't have any support by choosing this method. After all, the independent investor has his own interests at heart. Luckily, Realnet has a staff of experienced agents that can help your REO property purchase easy as pie! We have experts on REO properties, short sales and Florida foreclosures.

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Mississippi Continues to Struggle With Rising Foreclosures And Unemployment

Missouri has seen its foreclosures and home prices experience declines. The state's recent July unemployment numbers were below the national average while the state has suffered from two natural disasters this year.
Foreclosures and Delinquencies Declining
For the state of Missouri, there were 2,370 homes in foreclosure in July, representing a 38 percent decline from the previous July and a 7 percent drop from June. The state has reported a delinquency rate at 8.18 for the second quarter of 2011. This compares to a national delinquency rate of 8.44 percent. During normal market conditions, there are 1.1 percent of delinquent borrowers.
Missouri is also dealing with appraisers that use both foreclosures and distress sales for comps when determining estimates. Missouri is one of four states discussing possible legislation to have Missouri real estate owned foreclosures and other distressed sales excluded in comps for appraisals.
City Snapshot: Columbia
Columbia is the fifth largest city in Missouri and it is located in the middle of the state. Its economic numbers for the first half of the year was a mixed bag with unemployment at 6.5 percent. This sits below the state's 8.7 percent and the nation's 9.1 percent rate.
This unemployment number is one of the lowest in the state and with the University of Missouri and the local public school system in the city; its population continues to grow.
Columbia has moderate job growth and its foreclosures peaked in 2010; they are currently trending downward. The foreclosures are still above historic levels while the city's real estate has not had large decreases. The housing market is experiencing continuous weakness as recent home prices have gone down .44 percent in the second quarter 2011 as compared to the first quarter of the year.
For the past five years, home prices have been pretty flat with a .03 percent rise. The city's service-based economy fares positively as compared to other communities and the real estate market is believed to see a rebound when both consumer and business confidences return.
Unemployment Declines, Effects from Weather Disasters
In July, Missouri's unemployment rate dipped one tenth of a point to 8.7 percent reported the Missouri Department of Economic Development (MDED).
Since the beginning of the year, Missouri has seen its unemployment rate decrease eight-tenths of a point. Missouri's nonfarm payroll dropped 400 jobs but jobs overall from a year over year July comparison, there was the addition of .002 percent jobs or the additional payroll positions numbering 5,500.
June unemployment numbers have been revised and MDED is now reporting that the state projects a loss of 3,000 jobs from May to June. These numbers include the effects of Joplin's tornado, which has affected 9,000 jobs.
The state is also recovering from recent flooding and on Aug. 21 six northwest state counties had been declared disaster areas. They include Andrew, Atchison, Buchanan, Holt, Lafayette and Platt. Residents will also be entitled to 26 weeks of Disaster Unemployment assistance.
Home Prices Decline
For the second quarter, Missouri's large cities saw home price declines. St. Louis had a 3.4 percent decrease, Kansas City at 4.2 percent and Jefferson City with a 2.35 percent decline. Columbia saw the smallest decline for the second quarter with a .44 percent decline.
Joplin, which had been hit with the tornado, saw its home prices drop 2.8 percent.
Jefferson City, the capital of Missouri, had seen four successive quarters of home price increases.
Overall, the state saw decreases in its home prices. In Missouri, purchase-only prices dropped 8.1 percent as compared to 2010's second quarter. This ranks the state as No. 11 for the sharpest declines. Nationally, there was a 5.9 percent decrease.
Missouri's unemployment numbers, home price declines, and foreclosures are moving the state into a good position but it hasn't recovered yet.

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