Interested in REO property or a foreclosure in Edmond?
Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
For more information, just contact me
through my site or e-mail me
. I'm happy to answer any questions you have regarding real estate foreclosures.
What is an REO?
"REO" is an abbreviation for Real Estate Owned. These are houses which have gone through foreclosure and are currently held by the bank or mortgage company. This is unlike a property up for foreclosure auction.
When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. You must also be prepared to pay with cash in hand. To top everything off, you'll receive the property completely as is. That might include existing liens and even current residents that need to be expelled.
A bank-owned property, by contrast, is a more tidy and attractive transaction. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The lender will see to the elimination of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.
Do be aware that REOs may be exempt from standard disclosure requirements.
For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement,
a document that normally requires sellers to make known any defects they are knowledgeable of.
By hiring RE/MAX Associates, you can rest assured knowing all parties are fulfilling Oklahoma state disclosure requirements.
Is REO property in Edmond a bargain?
It is occasionally thought that any REO must be a steal and an opportunity for easy money. This often isn't true. You have to be prudent about buying a repossession if your intent is to make a profit. While it's true that the bank is usually eager to offload it fast, they are also looking to get as much as they can for it.
When pondering the value of a foreclosure, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale.
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 may lose money.
Time to make an offer?
Most banks 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 usually contract with a listing agent.
Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about their knowledge regarding the condition of the property and what their process is for getting offers. Since banks usually 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 terminate the offer if you find it.
If, as a buyer, you can provide documentation showing your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any type of real estate offer.)
After you've made your offer, you can expect the bank to counter offer. From there it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer.
Understand, you'll be contending with a process that most likely involves a group of people at the bank, and they don't work evenings or weekends. It's quite common for there to be days or even weeks of going back and forth.