Island Advantage Realty believes that an educated client is great client! We have provided you with links to helpful information that we hope you will find interesting and informative. The links below will take you to more information about each topic.

School Report Cards


blue-bullet  Ready To Buy, What Should I Do First?

blue-bullet  Who Do The Agents Work For? Why Sign the Agency Disclosure?

Ready To Buy, What Should I Do First?

Buying a new home can be one of the most exciting yet stressful times in your life. Educating yourself about the process will minimize anxiety of the unknown and unfamiliar. Being prepared will greatly simplify and streamline the process.

The first step is to organize your financial information. Collect recent tax returns, W-2s, pay stubs, bank statements, and any other documentation that contributes to your financial profile. This documentation will be used by a mortgage representative to determine a pre-approved mortgage amount. This is called a Pre-Qualification.

A mortgage Pre-Qualification serves two purposes. It identifies the customized price range to focus your attention on when shopping for a house. Second, it will save you valuable time when you make an offer on a house. You will be in a better position during the offer process because you already have your Pre-Qualification to submit with your offer. In today’s competitive market any delays can make or break a deal and having this extra edge is definitely an advantage.

Once you have your Pre-Qualification, it’s time to determine where to shop for a house and what you want and need in a house. Where do you want to live? Search local newspapers, websites, talk with family members and friends, to research your specific interests and/or needs. Explore prospective neighborhoods and take note of the location of highways, public transportation, schools, and stores. Determine what you need and what you want in the house itself.

Identifying these first items will lead to a significant head start in the home buying process. When you meet with your agent you will be prepared with your organized finances, a sales price range, a Pre-Qualification letter, an idea of areas to shop in, and a list of items that you’d like in a house. This will give your agent enough information to understand your personal needs, wants, and requirements which will result in a more efficient and satisfying home buying process.

Back to Top

Who Do The Agents Work For? Why Sign the Agency Disclosure?

The New York State Division of Licensing Services, as with most states, requires that agents, whether they represent the seller, landlord, buyer or tenant, disclose their respective duties. The New York State Disclosure form is a requirement in all real estate transactions. A signature demonstrates your understanding of the agent’s role in the real estate transaction.

In an excerpt from the form in regard to both the seller’s, landlord’s, buyer’s, tenant’s agent it states that the agent has, without limitation, the following fiduciary duties to the seller/landlord/buyer/tenant: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account.

For a seller’s or landlord’s agent this means, (a) exercise reasonable skill and care in performance of the agent’s duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the value or desirability of property, except as otherwise provided by law.

For the buyer’s or tenant’s agent this means, (a) exercise reasonable skill and care in performance of the agent’s duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the buyer’s/tenant’s ability and/or willingness to perform a contract to acquire seller’s/landlord’s property that are not inconsistent with the agent’s fiduciary duties to the buyer/tenant.

There is also a Dual Agent designation on the form. This states the agent acts on behalf of both the seller/landlord and the buyer/tenant. This kind of representation hinders an agent’s ability to entirely fulfill their duties were they working in only one capacity or the other. It is important that they explain and that you understand those ramifications beforehand.

Back to Top

Island Advantage Realty believes that an educated client is great client! We have provided you with links to helpful information that we hope you will find interesting and informative. The links below will take you to more information about each topic.

blue-bullet  What are the Most Common Types of Mortgages?

blue-bullet  Why Do I Need to be Pre-Approved?

blue-bullet  What are Typical Closing Costs?

blue-bullet  When is a Rehab Loan or 203K Loan Needed?

blue-bullet  Tips from Mortgage Lenders

What Are the Most Common Types of Mortgages?

There are many different types of mortgage loans available that will suit a number of different needs. It is important to speak with a qualified mortgage professional to determine the loan that best matches your personal situation. It is imperative that you fully disclose your needs and abilities so they can accurately advise you.

CONVENTIONAL LOAN: This is also called a fixed-rate loan. The term can be anywhere from 10-50 years, but is traditionally a 30 year loan. This means that for the life of the loan, you will have the same interest rate and the same principal and interest payment. At the end of your mortgage’s term, your loan will be paid in full. The only change that may occur in your payment will be adjustments for property taxes and homeowner insurance should those amounts change. This type of loan offers the most security and is best for those who are planning on owning the same home for a long period of time. The loan will be given for the balance of the purchase price that remains after the down payment is made. The percentage of the purchase price that is required as a down payment can vary, so it is important to verify this information with a mortgage professional. This type of loan also requires full documentation including W-2 forms which show your wages, recent paystubs, recent bank statements, and explanations for any derogatory accounts. Depending on the loan-to-value-ratio, there may be a requirement for private mortgage insurance. This insures the lender against any loss if the borrower defaults on the loan and is automatically included as part of your monthly payment.

FHA LOAN (Federal Housing Authority): These loans are insured by the government and are beneficial because of their lower down payment requirements and often lower interest rates. These loans also accept a higher loan-to-value-ratio than a conventional loan might. These loans still require full documentation (W-2 forms, recent paystubs, and recent bank statements). It does not rely as heavily on your credit score and trade lines (number of active credit accounts). The terms and limits are the same as with a conventional loan, but can have a reduced rate for mortgage insurance.

ARM (Adjustable Rate Mortgage) and INTEREST ONLY LOANS: These types of loans start out with a lower interest rate with the expectation and knowledge that it will increase over time. In an interest only loan, you are initially paying only the interest with nothing going to reduce the principal loan amount. The principal is generally paid in one lump sum payment at the end of the loan’s term. There are many different types of ARMS, with many different adjustment intervals, and it is important to understand exactly what those terms are when determining whether this is the best type of loan for you. Although this type of loan has been the subject of a lot of negative press as of late, there are still situations when they can be beneficial. An example would be when a borrower knows they will only be in the home for a short period of time.

Back to Top

Why Do I Need to be Pre-Approved?

It is very important to speak with a mortgage professional at the start of the process of purchasing a home. You need to be very clear about what you can afford. The last thing you want is to enter into a contract, only to find out you are unable to meet the requirements for the loan, especially with REO (Real Estate Owned, or bank owned) properties because of the time constraints on these types of closings. Having a pre-approval in your hands expedites the process and makes your offer comply with the guidelines of any lending institution.

When you have decided that it is time to buy a house, one of your first steps should be to find a qualified mortgage professional that you are comfortable with and trust to guide you through the financial aspects of this process. Be open and candid about your financial situation, your income and your monthly expenses. Once you have been pre-approved you will know how much you are able to afford to spend on your new home and you will have a good idea about what your monthly mortgage payment will be.

Also, be sure to understand the difference between pre-qualification and pre-approval. To issue a pre-qualification the loan officer will usually take your word on information such as income and debts, pull your credit and give you a figure right there in the office. With a pre-approval, they actually submit your information through a program with a lender and have a firm commitment securing your ability to obtain a loan and the necessary conditions that must be met.

A pre-approval also prevents mortgage officers from trying to undercut each other by making promises regarding time frames, the amount they can get you qualified for, your interest rate, their fees, etc. and then being unable to follow through with those promises. With a pre-approval, you have all of this information in writing so there should be no unexpected changes along the way.

Back to Top

What Are Typical Closing Costs?

Closing costs are the costs associated with obtaining a loan and can typically run anywhere from 4-6 % of the home price. However, this percentage can increase or decrease depending upon any number of circumstances. These are costs beyond the price of the home and must be paid at the closing or built into subsequent mortgage payments. Be sure that you discuss the estimated costs with your loan officer so there are no surprises on the day you finalize your purchase. A Good Faith Estimate which discloses an estimate of costs associated with closing costs will arrive shortly after your application has been submitted to the lender.

Some of the fees included are those associated with attorneys, escrow (property taxes and homeowner insurance), loan processing and underwriting, title insurance (lender’s and owner’s policies), appraisals, inspections, credit reports, transfer fees (title and homeowner’s association if applicable), and the recording of the deed.

Buyers will also encounter what is called recurring costs that must be paid in advance, often called pre-paids. A typical mortgage payment includes your payment, interest, property taxes and homeowner insurance. Often, the taxes and insurance, including mortgage insurance, are paid in advance by your lender and then included in your monthly payment. Therefore, when you first purchase the home, the initial advances made for escrow items must be paid at the closing.

In some cases, a buyer will purchase discount points that are due at closing. This is when the buyer actually buys themselves a lower interest rate and the fee for this will be included in your closing costs. Take note that a loan officer with the bank who is lending the money does not charge points. However, a broker who is searching out the best program for you may charge points, although not always. These points will be included at closing as well.

Another important thing to keep in mind is that most of these costs can be negotiable. A buyer can include provisions in their offer that make the seller responsible for paying the closing costs, either in part or as a whole. This needs to be part of the offer negotiations up front and cannot be added as a condition once the offer has been accepted since it will materially change the terms of the agreement.

Back to Top

When is a Rehab Loan or 203K Loan Needed?

A rehab or 203K loan is insured by FHA and is available when a home is in disrepair or has become uninhabitable. It is essentially the same as a conventional loan, with a fixed interest rate and a term anywhere from 10-50 years.

The benefit of this type of loan is that the amount is based on the value of the house when it is fixed, with the extra money placed in an escrow account to complete the necessary repairs. An example would be a home priced at $200,000, but with a repaired value of $250,000. The bank would give you the loan for $250,000 and put the remaining $50,000 into an escrow account.

It eliminates the difficulty in obtaining financing due to the condition of the property when buying the house. Also, you avoid having to secure financing or save up to complete the repairs after the purchase is already complete.

This type of loan is very popular for REOs or bank owned properties. Many of these homes were vacated as a result of foreclosure and/or eviction actions. The homes are often in disrepair and some have been vacant for long periods of time leaving the property vulnerable to vandals or the elements.

There are some conditions and limitations you should be aware of when considering this type of financing. The money held in the escrow account is not available to you as the homeowner and you can only complete the repairs yourself if you are properly qualified and are prepared to be subject to the bank required inspections. The funds will remain in the established escrow account and be paid in draws directly to contractors who finish the work, with inspections conducted throughout the process, as well as pre-determined time frames that must be adhered to. The benefit of this is that the bank will often act as the mediator between you and the contractor to ensure that their money is being put to good use.

Back to Top

Tips From Mortgage Lenders

  • Find a reliable loan officer: Word of mouth is your best tool for this. Speak with your real estate agent, title attorney, close friends or family members. You want to make sure that your loan officer is someone you can trust and that you feel confident will get you the best mortgage possible. You’ll want to make sure they return your phone calls and answer your questions in a timely and honest manner.
  • If it sounds too good to be true, it probably is: When it comes to making such an important purchase as your home, it’s easy to fall prey to what sounds like an incredible deal. Make sure to get all the details of your loan in writing before you sign contracts to purchase a house. Be sure all the terms and conditions are clearly written and that you question anything that seems vague.
  • Ask questions: A home is the largest purchase most people make in their lifetime and a mortgage payment may be the largest expense you have each month. It is vital that you feel comfortable with the process of getting your loan and with its outcome. Do not feel pressured by anyone to agree to a loan you are not comfortable with. You are the one who will be responsible for the mortgage payments and you will face the consequences if you are unable to maintain them.
  • Compare lenders: Banks and lenders have numerous programs available to them and sometimes they offer special programs that are not offered by other lenders. Be sure to explore as many options as you can. There are a wide variety of loan programs available and it is important that you are getting the best loan possible for your individual needs.
  • Have your financial documents ready: Most institutions require actual income documents. Have them ready in order to expedite the process. Two years of W2 forms, 1 month of recent pay stubs, 2 months of recent bank statements, explanations for any derogatory credit reports, etc.
  • Know the steps to your loan process: Familiarize yourself with what to expect. It will help ease your stress, and help prevent you from being taken advantage of. Your loan officer will thank you as well!

Key Terms:

Pre-approval: This indicates your ability to obtain a loan and that your information has actually been submitted to a lender.

Rate Lock: Make sure you have a “locked-in agreement” from the lender that will be providing your loan. This will ensure that the interest rate you agreed to will still be your interest rate at closing regardless of changes to the market.

Disclosure and Good Faith: Within three days of your application being submitted to the underwriting department you will receive a package of disclosures. This will include the Good Faith Estimate, which will give you an idea of how much you will need to bring to the closing table in order to cover your closing costs.

Conditions – About the time you receive your Good Faith Estimate you will also receive a notice to provide any further documentation regarding your income and/or debts. These are conditions that must be met in order to continue with the underwriting of your loan. Once this is submitted to the lender, your loan will be prepared for closing.

Back to Top

Island Advantage Realty believes that an educated client is great client! We have provided you with links to helpful information that we hope you will find interesting and informative. The links below will take you to more information about each topic.

blue-bullet  What is the Process When Buying A Pre-Foreclosure or REO?

blue-bullet  What Should I Look For When Buying a Pre-Foreclosure or REO?

blue-bullet  Why Do I Need an Attorney that Understands Foreclosures?

blue-bullet  The Difference Between an REO and a Foreclosure

blue-bullet  REO and Foreclosure Myth vs Fact

blue-bullet  What to Know about REO

blue-bullet  Can I Buy an Occupied REO? The Pros and Cons

What is the Process When Buying a Pre-Foreclosure or REO?

There are three different types of properties that can be considered when buying in this category:

  • Pre-foreclosure or short sale: When a borrower is in default on their mortgage they sometimes make arrangements with their lender to sell the property in order to avoid foreclosure proceedings. If the sales price of the home is less than the balance due on the mortgage, but is in line with the fair market value, the bank may approve the sale of the property. This is what is known as a short sale. There is no guarantee the bank will approve the short sale proposal, but in some cases it is the best course of action for all parties involved.
  • Foreclosed properties: When a borrower has been unable or unwilling to reach a settlement with their lender, a property goes into foreclosure. The foreclosure process and timelines vary from state to state, but the final step is the public auction. Properties can be purchased at auction, however there is often no time to inspect the property before purchase. Also, in many cases a large portion, if not all of the purchase price, is due at the auction site.
  • REO: Also referred to as a lender or bank owned property. This is when the foreclosure process has been complete and the lender was the highest bidder at the public auction. Ownership of the property reverts to the lender and the property is listed on the market for sale.

The first step, as when buying any other type of home, is to secure financing. It allows you to search for homes that fall into your price range. But more importantly, it saves time once your offer has been accepted since transactions are extremely time sensitive when dealing with foreclosure and bank owned properties.

Next, find the home you want to purchase. Research the area and compare the home’s price to other similar properties in the area. Verify the property taxes and any maintenance or homeowner association fees that may apply. If you are purchasing a pre-foreclosure property it is very important to find out if there are any other liens on the property since they will have to be paid in order for your to take clear title to the home. During this step it would be a good idea to contact an agent who specializes in REO and foreclosure properties. They will be able to guide you through the process and ensure that nothing is overlooked.

Once you have decided that you want to purchase the home, have your agent present your offer. Due to the competitive real estate market, be sure that your first offer is your best offer since there may not be an opportunity to amend the amount of your offer. The offer will then be submitted to the owner of the property along with your pre-qualification.

Back to Top

What Should I Look For When Buying a Pre-Foreclosure or REO?

When buying a pre-foreclosure, REO property or a home at foreclosure auction it is crucial to consider all the numbers involved.

Some properties may have additional encumbrances (liens) that you could become responsible for in order to take title to the property. It is important to be aware of any taxes owed or unpaid utilities since these charges can also be assessed to the home. If you plan to purchase a pre-foreclosure it is essential that these issues be addressed.

Also, in the case of distressed properties, it is important to take into account any foreseeable repairs and how they add/detract from the home’s value. Be sure to compare your property to available and recently sold homes in the area to have a better understanding of your property’s worth.

In most cases, foreclosed properties are sold “AS-IS” and are priced accordingly. This means that there are no guarantees or warranties as to the home’s condition. Consider the “sweat equity” or cost benefit of making those repairs in comparison to the marketable value. Inspections are not always available, but if they are, you may run into problems during the colder months because of winterization. These “down-cold” conditions often make it difficult to inspect plumbing and heating functionality, so be sure to keep that in mind when you are buying a foreclosed property that is vacant. You may not be given the opportunity to have the home de-winterized in order to complete the necessary inspections so may allowanced for repairs that may be needed.

Finally, be sure you are working with an agent that specializes in REO and foreclosure
properties. Many of the documents and disclosures are specific to these types of transactions. It is best to have someone who is familiar with the process since there will be many conditions to meet and an agent inexperienced with this field could find it daunting.

For the buyer’s agent, this means, (a) exercise reasonable skill and care in performance of the agent’s duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the buyer’s ability and/or willingness to perform a contract to acquire seller’s property that are not inconsistent with the agent’s fiduciary duties to the buyer.

There is also a Dual Agent designation, where the agent acts on behalf of both the seller and the buyer. This kind of representation hinders an agent’s ability to entirely fulfill their duties were they working in only one capacity or the other, so it is important that they explain and you understand those ramifications beforehand.

Back to Top

Why Do I Need an Attorney that Understands Foreclosures?

Contracts that are used in REO and foreclosure transactions are highly specialized and can differ greatly from the contracts used for traditional real estate transactions. When purchasing an REO property the seller of the property is a lending institution that is selling the house merely to recover their investment in the quickest and most efficient manner possible. The attorneys who represent the banks in these transactions specialize in REO transactions and spend their time working almost exclusively on these types of sales. It is important for you to have an attorney protecting your interests with the same qualifications and experience as the attorney representing the other side. You need to feel comfortable with the unfamiliar information you are being exposed to, and your attorney should be able to explain the process to you in a way that is not overwhelming or intimidating.

Foreclosure and REO contracts contain very specific language that many real estate attorneys are not familiar with, especially if they have never personally handled this type of transaction. Also, the time frames included in these contracts are very often shorter than those that would be found in a traditional contract. Your attorney needs to be familiar with what they are looking at so they can process the information correctly and in a timely manner.

The terms that are agreed to when negotiating an REO contract must be strictly adhered to. If you fail to comply with their specified requirements for any reason that is not included as an acceptable delay you could be considered in default and there is a possibility that the bank will keep your down payment. It cannot be stressed enough that to the banks, time is money and the timeframes set forth in the contracts must be met.

Back to Top

The Difference Between an REO and a Foreclosure

Foreclosures are homes that the bank does not own yet. The borrower still has ownership of the property but has fallen behind on their mortgage payments to the lender. In the event that they cannot reach an arrangement with the lender to resolve their delinquency, foreclosure proceedings may start. Foreclosure procedures and timelines vary from state to state, and just because a foreclosure action has been started does not guarantee that an auction will take place. However, the final stage of a foreclosure in any state is the public auction of the property. It is important to know that the lender cannot sell a property to an interested buyer while the foreclosure action is still in progress. The borrower retains ownership of the house until foreclosure is complete.

REO (Real Estate Owned) is an industry term that refers to a property that ownership has reverted back to the lender through some means. A property can be surrendered to the bank in order to avoid the completion of a foreclosure or the bank may be forced to complete the entire foreclosure process. If a foreclosure auction is scheduled on a property the bank will determine the amount of money they have invested into the property which is referred to as their total payoff. If the auction takes place and there are no bids placed higher than the bank’s maximum bid, the bank takes the deed to the property.

If a property is purchased at public auction it is sold in “As-Is” condition and potential purchasers usually cannot inspect the property for potential occupants, severe property damage or other defects before the sale takes place. If the property is purchased as an REO, it is still sold in “As-Is” condition but a viewing of the property can be arranged through the bank’s selling agent. This ensures that you are fully aware of any possible defects within the property before committing to purchase.

Remember: throughout this process the bank is simply trying to recover their investment in the asset. They are not in the property management business and do not want to delay recovery of their investment any longer than necessary.

Back to Top

REO and Foreclosure Myth vs Fact

Myth: Banks will sell their property at a huge reduction in price just to “dump” the property.
Fact: While banks do not want to hold inventory any longer than necessary, they are also not in business to lose money. Once a property has been foreclosed a bank has already increased their investment by lost mortgage payments, unpaid taxes, legal fees and other costs. The bank will price the property according to the fair market value and will work to get the highest and best offer possible.

Myth: Buying an REO with cash entitles a buyer to a discount in price.
Fact: Banks are concerned with recovering their money from a property and nothing else. They will accept a qualified financed offer that is higher, over a lower cash offer.

Myth: Every lender liquidates their inventory in the same manner.
Fact: This is false. Each bank has its own business plan and bottom line. Some may be able to accept lower offers on certain properties due to a large inventory, while others choose to wait for higher offers on every home. There is no industry standard with regard to REO sales prices.

Myth: An REO purchaser must use the bank that owns the property to obtain financing.
Fact: Banks, like any other seller, are only interested in receiving fair market value for the property they are selling. They will accept a pre-qualification letter and financing from lending institutions other than their own.

Myth: The list price is the list price- there are no price negotiations for REO properties.
Fact: The price for REO properties is negotiable as in any other real estate transaction. It is important to keep in mind that the bank is trying to recover an investment. All reasonable offers will be considered, but the bank’s primary concern is their bottom line.

Myth: Buyers can use a HELOC (Home Equity Line of Credit) to purchase an REO.
Fact: Showing that you have a HELOC on your existing property is not acceptable as proof of funds on its own. In order to make this an acceptable proof of funds you will need to provide additional information to the seller that you have available credit remaining on the HELOC and that the lender will be able to release those funds within the time frame needed. Sellers of REO homes, just like any other property, need proof of money actually at your disposal in order to determine your qualifications to purchase the property.

Myth: It is easier for the bank to sell the property before the foreclosure auction in order to save time and money.
Fact: The bank cannot sell the property to an interested buyer until they have taken title to the property. While the foreclosure process is still taking place, the bank does not have legal ownership of the property yet.

Back to Top

What to Know about REO What to Know about REO There are a few important differences to understand when buying REO properties as opposed to traditional real estate. First and foremost, the seller is a financial institution with no emotional attachment to the property for sale. In most cases, no one from the lending institution has ever even been inside the property. They are only concerned with receiving the highest offer and best terms possible. In fact, most of the negotiation process is completed via internet. The only information the bank will receive is the terms of the offer. They, unlike a traditional homeowner, do not have any personal interest in who is moving into “their home”.

Since you can’t rely on personal interaction it is important that your offer makes a good first impression. Be sure you speak with your lender before submitting an offer on a property. A pre-qualification letter is required along with your offer so that the bank can be sure they are only considering offers from buyers that will qualify for the necessary funds. Time is money and the bank wants to avoid any potential problems before they arise. Be sure to look for a loan program that applies to the type of property you are looking to purchase. REO properties are sold in “As-Is” condition and may not qualify for all types of traditional financing. Many lenders now offer rehabilitation programs that can help bring a distressed property up to mortgage standards. The repairs will take place after the transaction has been completed.

Another aspect of buying REO properties that differs from a traditional purchase is the closing date. Traditional sellers are generally more flexible about a closing date. Usually the term “on or about” a certain date is used in the contract of sale. As long as the closing takes place within 30 days of the agreed to date, there are no penalties enforced. However, REO contracts use the term “on or before” a certain date. The bank selling the property expects the closing to take place no later than the agreed to closing date. Banks have strict guidelines and rely on the scheduled closings for a variety of reasons. You could be faced with daily penalties if the closing is delayed.
REO transactions differ from traditional purchases in a number of ways. Therefore it is highly recommended that you retain a real estate attorney who specializes in REO purchases. This type of attorney is best suited to both protect your interests and to ensure the bank’s requirements are met. An attorney who is familiar with REO transactions will be able to walk you through the various differences so that you are fully aware of all aspects of the transaction. Also, you will not be faced with unfamiliar terms or conditions you don’t know how to address.

Since you can’t rely on personal interaction it is important that your offer makes a good first impression. Be sure you speak with your lender before submitting an offer on a property. A pre-qualification letter is required along with your offer so that the bank can be sure they are only considering offers from buyers that will qualify for the necessary funds. Time is money and the bank wants to avoid any potential problems before they arise. Also, be sure to look for a loan program that applies to the type of property you are looking to purchase. REO properties are sold in “As-Is” condition and may not qualify for all types of traditional financing. Many lenders now offer rehabilitation programs that can help bring a distressed property up to mortgage standards. The repairs will take place after the transaction has been completed.

Another aspect of buying REO properties that differs from a traditional purchase is the closing date. Traditional sellers are generally more flexible about a closing date. Usually the term “on or about” a certain date is used in the contract of sale. As long as the closing takes place within 30 days of the agreed to date, there are no penalties enforced. However, REO contracts use the term “on or before” a certain date. The bank selling the property expects the closing to take place no later than the agreed to closing date. Banks have strict guidelines and rely on the scheduled closings for a variety of reasons. You could be faced with daily penalties if the closing is delayed.

REO transactions differ from traditional purchases in a number of ways. Therefore it is highly recommended that you retain a real estate attorney who specializes in REO purchases. This type of attorney is best suited to both protect your interests and to ensure the bank’s requirements are met. An attorney who is familiar with REO transactions will be able to walk you through the various differences so that you are fully aware of all aspects of the transaction. Also, you will not be faced with unfamiliar terms or conditions you don’t know how to address.

Back to Top

Can I Buy an Occupied REO? The Pros and Cons. The Pros and Cons. There are circumstances where a tenant or owner still occupies an REO property. When you purchase a property directly at the foreclosure auction, many times it is still occupied. Or, the bank may have taken ownership and wishes to sell the property before it has become vacant. The potential for a good investment makes this situation attractive to some buyers. With a tenant already in place who is caring for the property and paying rent on time, investors see this as a great incentive to purchase the property. However, this is the best-case scenario. A tenant may decide not to continue paying rent once you take ownership of the property. If the occupant is the former owner, they were unable to pay their mortgage at one point, leading to the foreclosure action. They could become unable to pay their rent as well. There is also the possibility of a disgruntled occupant inflicting extensive damage to the home and property that you will be legally and financially respo. The eviction process can be expensive and time consuming. Also, there is the issue of personal liability. You are opening yourself up to insurance claims or other legal action should any issues arise on the property while it is under your ownership. Before making this decision make sure you fully understand all of the potential issues that can arise. Consult an attorney regarding your responsibilities as a landlord and research the eviction laws in your area. An occupied REO can be a good investment provided the risks are acknowledged and properly addressed.

Back to Top
property-managment_forpage

As Long Island and Metro New York’s premier facilitator of investment opportunities, Island Advantage Realty has become a go-to resource for local as well as institutional investors. Our unique position in the default marketplace has made us a major attraction to the opportunistic among us, especially those seeking a chance to leverage resources in the acquisition of real property. As a result of our almost three decades of experience, our very experienced and incredibly knowledgeable sales team has amassed an extensive understanding of real estate investment. So whether you are seeking to purchase for speculation, rent for residual income, and/or break into the commercial investment marketplace, our insightful force of sales professionals is ready to assist you in meeting your highest ambitions. Island Advantage Realty takes pride in our ability to work with very experienced investors as well as those seeking to make their first real estate investment purchase. We are confident that we can assist any investor with discovering new opportunities and with navigating the real estate terrain. We look forward to assisting you in your investment ventures. Call us today!

Long Island offers a diverse lifestyle like no other place can. Its close proximity to both the hustle and bustle of city life and the peaceful tranquility of beach life as well as everything in between these extremes, makes Long Island the ideal place to call home whatever your style or interests may be.

No matter where you are on Long Island, you will be enchanted by the welcoming small town lifestyle; quaint shopping villages, small cafes, local farm stands, just an all around friendly community feeling. Only a short distance away you can enjoy all that New York City has to offer; fine dining, theater, dancing, designer boutiques, whatever your heart desires.

Weekend adventures may include a ferry ride north across the Long Island Sound to explore the Connecticut coastline. A ferry ride across the Great South Bay would take you to various points on Fire Island depending upon your departure location. Visit one of our plentiful farms for seasonal apple or strawberry picking and the best fresh produce and homemade pies around! When the air is cooler and the leaves start to fall you can get lost in a cornfield maze and pick the perfect pumpkins. In the winter there are plenty of sledding and ice skating “hot spots” and great skiing is only a short distance away. Drive through the Jones Beach extensive Holiday Light show in December. Watch the spectacular July 4th fireworks display from many of our beaches or from Bald Hill. Learn about the significant role Long Island played in worldwide aviation and space exploration. Visit one of our many vast educational aviation museums. View the amazing Air Shows on Memorial Day weekend at Jones Beach. Sign up for flying lessons or take a helicopter ride at one of our local airports, or just sit in the cockpit of an actual war plane on display. Long Island is abundant with rich history and artifacts. We are fortunate to have historical mansions and museums in just about every town. Gain a better understanding about the Long Islanders before us that were a major contributing factor in making Long Island what it is today.

Or you could take time to relax and enjoy nature at one of our many parks, or arboretums. Play a round of golf on one of our many beautiful courses, or take a bike ride or fish. Enjoy a drive out east to “The End” and explore the Montauk Lighthouse. Stop to take a tour at some of the wineries along the way, and enjoy a “lobster roll” from one of many east end seafood restaurants.

No matter the season there is always something to do on Long Island and memorable traditions to be made in the process.

Back to Top