This is a great time for REO investors to pick up a Chicago Single Family Residence or even a Chicago Two Flat from the banks. The latest in REO real estate news is that Fannie, Freddie and the Federal Housing Authority who back the loans for the banks are taking a second glance at investors. It appears that the banks looked at investors as those who were acquiring REO properties and putting a skim coat of money into the buildings and doing a flip flop type of “buy low, sell high” product in the market place.
Rates have been higher for those investors who were acquiring REO properties as the banks felt that their risk was higher with investors versus owner-occupied properties.
What we are seeing here in Chicago is that those who acquire REO Single Family Residences are renting them out at a good rental due to the demand from those who have lost their homes and still desire living in a home versus an apartment.
The caveat to this entire situation is that while the lenders are taking a second look at investors as saviors for acquiring inventory, the buyer/investor still must be cautious when purchasing a Chicago REO or an investor flip-flop.
photo by dess
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