Methuen Foreclosures

Bank Owned Properties

One specialized field of real estate investing has generated a lot of public interest during recent years: REOs. The abbreviation "REO" denotes "real estate owned." Banks and financial institutions use this term to refer to houses, condos, townhouses, apartment buildings and residential lots which enter their asset inventories.

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Why do investors frequently search for REOs? In many cases, banks will sell these properties to the public on an "as is" basis. Buyers carry the responsibility for making any necessary repairs or improvements, yet they may obtain solid real estate values and very attractive prices. In some cases, the financial institution will even provide financing to pay for property refurbishments.

Savvy real estate investors who can perform some types of home repairs themselves, such as carpentry or roofing or HVAC service may discover they obtain excellent returns on investment by purchasing discounted REO properties requiring their special skill sets. Not every REO reaches the marketplace requiring repairs or beautification, of course. Nor do all of these properties sell on an "as is" basis. Yet in some situations, investors seeking to expend limited capital enjoy an opportunity to employ "sweat equity" to obtain value through this specialized investment niche.

Short Sales

While real estate may appreciate in price over the course of time, it also declines in value sometimes. Fluctuations in market prices sometimes prove exceedingly painful for home owners, in fact. One situation which involves considerable financial and legal risks relates to so-called "short sales".

A short sale occurs in real estate when a home owner endeavors to sell a home carrying a high burden of outstanding mortgage debt at a market price insufficient to satisfy the mortgage at closing. This situation carries a high degree of legal and financial risk. It may result in delayed or disrupted closings, since today many banks and mortgage lending institutions cannot approve short sales as a matter of policy. Buyers and sellers may benefit by consulting with licensed Massachusetts real estate attorneys about short sales.

Why does a short sale involve risks for purchasers? In some cases, a buyer who relocates from one residence to another seeks to sell the previous residence in advance of the relocation. A buyer may expend a lot of money planning to move on a specified date, and may need to finalize these arrangements weeks in advance. A delayed closing (or worse, a completely disrupted closing) sometimes costs frustrated buyers significant sums of money and substantial delays and inconvenience.

Sellers also suffer consequences in this situation, especially if they have already arranged to purchase another property. In some cases, the disruption of a closing may result in a seller failing to close on a home elsewhere. A variety of adverse results may result from real estate transactions which experience disrupted closings.

About Methuen

This community of some 50,000 people lies in far northwestern Essex County, Massachusetts. It covers an area of slightly over 23 square miles. The New Hampshire state line extends very close to this location (about two miles north, in fact).

Interstate 93 passes through Methuen, linking it to New Hampshire on the north and Boston on the south. Boston sits some 29 roadway miles from this location. The freeway intersects with Interstate 495 just outside of town. The I-495 beltway provides residents with ready access to many communities along the western outskirts of the Greater Boston Metropolitan Area.

With its well-developed infrastructure, and many employment, educational, shopping, dining, and recreational opportunities within the vicinity, this municipality offers residents a comfortable quality of life. History buffs discover many points of interest here. The city still retains a number of historic buildings, particularly in the downtown area.

You'll discover REOs reaching the marketplace in this location frequently. Consider asking Boston City Properties to assist you in your search for these properties. We look forward to helping you find your next home or investment in this historic Massachusetts city!

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