About REOs and ForeclosuresREOs and foreclosed properties over-supply today's market, the BUYER'S MARKET! Its true.. now is the time to buy! Today is the perfect opportunity to buy your first home or even to make you first real estate investment. "How" you ask? "Why"?
Typically, an REO or Foreclosed home is a lender's asset that suffered a loss. At this point, the owners have quit paying on their mortgage or have simply abandoned the premises and handed over the keys. It is in the lenders best interested to mitigate these losses by reselling the home for the best offer possible in the shortest amount of time.
FORECLOSURE VS. REOA foreclosure is a property where the home owner has quit paying on their mortgage and is no longer able to afford the payment. At this point the bank is taking legal action to revert the asset. To purchase a foreclosed home, a buyer has to wait for the Foreclosure Sale which usually takes place at the county court house. The sale price will almost always include the amount still due on the previous mortgage and any other fees incurred by the sale date. Usually, the home is no longer worth what the mortgage amount is and it automatically get reverted back to the bank. At this point, the bank becomes the new owner, the mortgage is erased and the property is considered a Real Estate Owned (REO).
SO YOU WANT TO BUY A BANK OWNED PROPERTY?Most banks work with the best REO agents in the area that the home is located in, and most will only accept offers that are presented by an REO certified and lender preferred agent. Whether you have already found a home or are looking to find a home... you have come to the right place!
Dan and Traci & Consultants are experienced with bank owned property. In addition to working directly with the banks to list their properties, we assist many buyers through this process.
The first step to buy a bank owned property, as when buying any other type of home, is to secure financing. This is important when buying a foreclosed property because often, you will have to act quickly once you find the home that is ideal for you. Transactions are time sensitive when dealing with foreclosure and bank owned properties.
Next, find the home you want to buy. We will assist you with providing research of the area that you are interested in and assist to compare the home's price that you are interested in to other similar properties in the area. We will also assist in verifying 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. Our team 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, we will present your offer. Due to the competitive real estate market, we recommend that your first offer be your best offer since there may not be an opportunity to negotiate. The offer will then be submitted to the owner of the property along with your pre-qualification.