2011 just might be the year the banks decide to release the foreclosed homes to Buyers.
By definition, Real Estate Owned, a.k.a. REO is a ‘property which is in the possession of the lender as a result of foreclosure or forfeiture.’ Courtesy of http://www.investorwords.com
According to Susena Araiza, Realtor for Century 21 M&M Patterson, during the month of January 2011 she has seen an increase of released REO properties. She estimates that two times the number of properties have been released during January as compared to December 2010.
says, “FHA is the one that is the most flexible for home buyers right now…they are saying that the lenders may be a little more flexible in 2011”.
For First Time Home Buyers, Mina says, “In the Central Valley we have the USDA loan for zero down payment and as I understand as of today there is a budget for this type of loan.”
For some good news on the horizon, Susena says, “People started loosing their homes two, three years ago, so now these people-if they have a foreclosure on their record, these people are going to be eligible to purchase. So we are hoping to get a big wave of Buyers in 2011.”
Overall, Century 21 M&M real estate agents are optimistic about 2011. They believe that interest rates will remain low, that banks are going to release some of the REO’s the have been holding, and that lenders are going to ease up on their qualification requirements.