Rescuing Value

Rescuing Value

by Lance Kettler

One of the things that I am most passionate about in my life is animal rescue.  I have a great fondness for all animals and I am without any doubt that dogs truly are man’s best friend.  If you’ve taken the time to look at the Kettler Kares section of my website you know that helping our furry friends is one of my life’s missions.  Whenever I am at a rescue center or adoption event I am overwhelmed with joy when I see a canine friend adopted by a loving and caring owner.  Sometimes the animals have seen some rough times.  They aren’t quite themselves, they’re unkempt at best, injured at worst.  But it is always amazing to me how different they look after a bath and a little TLC.  The transformations are amazing.

A dear friend recently pointed out that my love of REO property is similar to my love of dog rescue.  I hadn’t ever thought of it quite in that way before.  But upon closer examination I definitely see what she means.  I love looking at an empty house and looking beyond the neglect to see all of the possibilities.  I love matching a home to a prospective buyer and knowing that there is a mutually beneficial relationship about to bloom.  I love driving by months later and seeing the home happily occupied, the lawn trimmed and flowers in the flower box. I derive great satisfaction out of seeing things of great value that have been overlooked restored to their rightful place of happiness and respect.

If you have a loving home and would be happy to welcome a furry friend into your life, make sure that you check out Kettler Kares for suggestions as to where you can adopt a pet in need of a home.  If you are interested in purchasing an REO property, savings tens if not hundreds of thousands of dollars while at the same time building equity please contact my office so I can show you the homes available for adoption.

 

REO for the 1st Time Home Buyer

Congratulations on being ready to purchase your first home.  You probably could not have picked a better time.  Chances are that 3 years ago you were wishing that you were in a position to own a home.  Now that you are ready you might be hearing a large amount of conflicting advice.  Buy now, don’t buy now, it seems like everyone has an opinion and they are all conflicting.
 
Hopefully I can be the voice of reason in the cacophony of real estate predictions.  Here is the common sense guideline that really gets to the bottom line.  Value is value.  What does that mean? Markets are going to fluctuate, they always have and they most certainly always will.  When you own something of value you can survive any market.  It’s important to look at cost, but always remember to factor in value.
 
 If you are a first time home buyer and want to score a great bargain with high value then you certainly want to take a look at what the REO market has to offer. Give me a call and let me show you the value that is available to you.

REOs on the Rise!

ForeclosureS.com, one of the most recognized authorities in foreclosure statistics is reporting that REOs are up more than 70% in the first quarter of 2008. This number comes as no surprise to those of in the real estate business.  We expect for the number of REOs to rise over the next few months as more and more of the ARM loans reset and home owners are unable to meet the new adjusted mortgage payment, refinance their homes or sell the home quickly for an equitable rate. 
 
This large amount of REO property entering the market is potentially a once in a lifetime opportunity for investors who are looking to make a long term investment in the real estate market.  If you are interested in positioning yourself with valued real estate for bargain prices you need to take a look at what the REO market has to offer. 
 
In all areas of real estate it is important to have the right professional representing your interests; this is especially true in the REO market.  Banks and lenders are reticent to release their property holdings list to the public.  If you aren’t working with the proper professional who has access to this inside information you can lose valuable time and information.  We are the leaders in the Los Angeles REO market, contact our office and ensure that you are working with the highest caliber professionals in the business.
 

REO: The Hot Investment Opportunity of the Decade

Why are REOs so hot right now?  The simplest answer is that there are so many of them. With a record number of homes entering foreclosure and record numbers of homes going on the auction block, it only stands to reason there would be a record number of REO properties.  As we discussed in the last blog REO means property that was foreclosed upon and did not successfully sell at auction.  The property has now reverted to the lender. 
 
Even in economically sound times there are REO properties. But in general a bank won’t have a large inventory of REO properties. They don’t want to have a large inventory of homes.  They aren’t in the real estate business and it actually reflects badly on the bank’s business to have a long list of bad debts.  Currently lenders are finding themselves with an increasing inventory of REOs.  The upkeep and maintenance alone on these properties is expensive and undesirable for the lenders.  They prefer to sell the property than to maintain it.  This creates a motivated seller.
 
Across America we are seeing a large number of REOs entering the market on a daily basis, with motivated lenders looking to sell to qualified buyers.  In some cases we are seeing REO property sold for record discounts at better than average interest rates.  If you are waiting to buy your first home or to further invest in the real estate market – don’t wait.  Let me show you what the REO market has to offer you.  You won’t be sorry.
 
 

Why REO? Why Now?

Chances are that some time in the last month some one has said REO to you, and they weren’t talking about the band from the eighties.  REO property, which stands for Real Estate Owned has been one of the best kept secrets of the real estate industry for numerous years.  Purchasing REO property wasn’t something the general public was even aware of.  Suddenly everybody’s talking about it.  What’s the big deal?  Why now?

I’m glad you asked. I’d be happy to tell you. 
 
Let’s start with a quick definition of what REO property is.  If a home owner falls behind in their mortgage payments the lender will start foreclosure proceedings.  If the homeowner is unable to get caught up on their mortgage payments the property will ultimately be offered at auction.  If the foreclosed home does not sell at auction it becomes REO – Real Estate Owned by the lender.  Once the bank/lender owns the property they will attempt to sell it to recoup their original investment.
 
You might be asking what’s the big advantage of buying a property that no one wanted at auction?  The first and most obvious reason is price; there is a sizable discount on REO property generally between 10% and 30% below market value.  Frequently a property won’t sell at auction because there is a sizable tax lien on the property that the highest bidder will be force to pay in addition to their winning bid.  With REO, any tax liens on the property are usually forgiven.  This can be a substantial savings over purchasing at auction. And when you buy REO you are capable of inspecting the property before you purchase, which is either difficult or impossible with auction foreclosures.
 

Is your interest peaked?  Check back for my next installment when I explain why REO property is the hottest opportunity of the decade.  To subscribe to the blog, click the RSS button.
 

The Best REO Advice

Every time I turn around I see another ad for a HOW TO book promising to teach the reader everything they need to know about buying REO and foreclosure property.  Then there are the endless ads for seminars offering to teach the same thing.  It’s mind boggling to me how many people are trying to make a buck these days off of educating the public about purchasing REO and foreclosure properties. Don’t get me wrong, I’m all about education, but some of these seminars cost thousands of dollars and at some point every seminar, every book that is written on the subject says, “Find a Real Estate Professional who specializes in REO and foreclosure property” or something to that effect.
 
I happen to be one of those real estate professionals who specializes in REO and foreclosure properties.  To anyone who is considering paying $29.95 for the newest book on the subject or $1,295 for a weekend seminar – consider saving your money.  My name is Lance Kettler, I’m with Kettler Financial.  Read my blog for free to learn more about buying REO property and the REO process.  And if you live in Southern California give me an opportunity to be your financial expert on buying REO property.  Take the money you save and invest it in real estate, you’ll be glad you did.