Buying REO property or a foreclosure in Needles?


	Purchasing a bank-owned property is not something to be taken lightly.

What's an REO?

"REO" is short for Real Estate Owned. These are properties which have been foreclosed upon and are presently held by the bank or mortgage company. This is unlike real estate up for foreclosure auction. O48 Realty Professionals has experience to share with foreclosures and bank owned properties in Needles, California

O48 Realty Professionals has experience to share with foreclosures and bank owned properties in Needles, California

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. The buyer must also be prepared to pay with cash in hand. To top everything off, you'll get the property 100% as is. That possibly could include existing liens and even current tenants that need to be evicted.

A bank-owned property, conversely, is a much cleaner and attractive deal. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The bank will attend to the elimination of tax liens, evict occupants if needed and generally organize 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 California, banks do not have to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to make known any defects of which they are knowledgeable. By hiring O48 Realty Professionals, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Am I guaranteed a bargain when buying a bank owned property in Needles?

It's frequently assumed that any REO must be a steal 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. Even though the bank is often anxious to sell it quickly, they are also motivated to minimize any losses.

O48 Realty Professionals has experience to share with foreclosures and bank owned properties in Needles, California

Look closely at the listing and sales prices of similar homes in the neighborhood when considering the purchase of 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 flipping foreclosures. Still there are also many REOs that are not good buys and may lose money.

All set to make an offer?

Most mortgage companies 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 frequently hire a listing agent.

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about their knowledge regarding the condition of the property and what their process is for taking offers. Since banks most commonly 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 hidden damage and terminate the offer if you find it. As with making any offer on real estate, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

After you've submitted your offer, it's customary for the bank to make a counter offer. At this point it will be up to you to decide whether to accept their counter, or submit another counter offer. Your deal might be final in a single day, but that's usually not the case. 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. O48 Realty Professionals is accustomed to these situations and will work to ensure there are no undue delays.