Know REOs' loan limits

Hugh Larratt-Smith, Trimingham Inc.

As published in Scotsman Guide's Residential Edition, May 2010.

When helping clients finance distressed- and real estate owned (REO)-property purchases, remember that government agencies often are more willing to finance these purchases when they meet conforming-loan limits. Also, although many banks attempt to sell their REO portfolios of single-family residences at 90 percent to 95 percent of the loan principal, REO properties often sell more quickly when they are anywhere from 40 percent to 65 percent of the quick-sale value, depending on the region.

larratt@trimingham.com