|
|
|
|
Buying REO property or a foreclosure in Edmond?
 |
 |
 |
Savvy consumers will turn to a seasoned pro when considering a foreclosed property. |
|
|
|
 |
What's an REO?"REO" means Real Estate Owned. These are houses which have been foreclosed upon and are now held by the bank or mortgage company. This differs from a property up for foreclosure auction. 
If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accrued during the foreclosure process. The buyer must also be ready to pay with cash in hand. Finally, you'll receive the property entirely as is. That could involve prevailing liens and even current tenants that need to be evicted.
A bank-owned property, conversely, is a more tidy and attractive deal. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The bank will deal with the elimination of tax liens, evict occupants if needed and generally plan 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 tell you about any defects they are informed of. By hiring Metro First Realty Edmond, you can rest assured knowing all parties are fulfilling Oklahoma state disclosure requirements.
Are REO properties a bargain in Edmond?It's frequently thought that any REO must be a bargain and an opportunity for guaranteed profit. This frequently isn't true. You have to be very careful about buying a REO if your intent is make money. Even though the bank is typically eager to sell it promptly, they are also looking to get as much as they can for it.
 When contemplating 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. The bargains with money making potential exist, and many people do very well buying and selling foreclosures. Still 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. Normally the REO department will use a listing agent to get their REO properties listed on the local MLS.
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 their knowledge about the condition of the property and what their process is for getting offers. Since banks usually sell REO properties "as is", it may be in your best interest to 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 secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any real estate offer.)
Once you've presented your offer, you can expect the bank to counter offer. At this point it will be up to you to decide whether to accept their counter, or make another counter offer. Your transaction might be final in a single day, but that's usually not the case. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Metro First Realty Edmond is accustomed to these situations and will work to ensure there are no undue delays.
|
 |
|
|
|
|
|
This XSite has been customized byEos Concepts, LLC | www.EosConceptsXSites.com
|