Making an offer on REO property or a foreclosure in CARTHAGE?


	Making an offer on a bank-owned property is not something to be taken casually. For more information, just contact me through my site or e-mail me. I'm glad to address questions you have about real estate foreclosures.

What's an REO?

"REO" or Real Estate Owned are homes which have been through foreclosure that the bank or mortgage company presently owns. This is not the same as a property up for foreclosure auction. Charles Burt Homefolks has experience to share with foreclosures and bank owned properties in CARTHAGE, Missouri

Charles Burt Homefolks has experience to share with foreclosures and bank owned properties in CARTHAGE, Missouri

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. The buyer must also be ready to pay with cash in hand. Finally, you'll accept the property 100% as is. That could include prevailing liens and even current tenants that need to be put out.

A bank-owned property, on the other hand, is a more tidy and attractive option. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The bank will deal with the removal of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

Do be aware that REOs may be exempt from normal disclosure requirements. For instance, in California, banks are not required to give a Transfer Disclosure Statement, a document that typically requires sellers to disclose any defects they are informed of. By hiring Charles Burt Homefolks, you can rest assured knowing all parties are fulfilling Missouri state disclosure requirements.

Are REO properties a bargain in Jasper County?

It is commonly presumed that any REO must be a good deal and a possibility for easy money. This simply isn't true. You have to be prudent about buying a REO if your intent is make a profit. While it's true that the bank is typically eager to sell it soon, they are also motivated to get as much as they can for it.

Charles Burt Homefolks has experience to share with foreclosures and bank owned properties in CARTHAGE, Missouri

Look closely at the listing and sales prices of comparable properties in the neighborhood when making an offer on an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in. There are bargains with potential to make money, and many people do very well buying and selling foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.

All set to make an offer?

Most lenders have staff dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will often contract with a listing agent.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and find out as much as you can about what they know regarding the condition of the property and what their process is for receiving offers. Since banks typically sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for unknown damage and retract the offer if you find it. If, as a buyer, you can provide documentation demonstrating your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any real estate offer.)

After you've presented your offer, it's customary for the bank to make a counter offer. At this point it will be your decision whether to accept their counter, or offer a counter to the counter offer. Your deal could be final in a single day, but that's rare. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.