Purchasing REO property or a foreclosure in Cartersville,?
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 glad to address any questions you have regarding real estate foreclosures.
What is an REO?
"REO" or Real Estate Owned are houses which have gone through foreclosure that the bank or mortgage company now holds. This is unlike 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 amassed during the foreclosure process. The buyer must also be ready to pay with cash in hand. And on top of all that, you'll receive the property 100% as is. That possibly will comprise of existing liens and even current residents that may require expulsion.
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 lender owns it. The bank will take care of 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 standard disclosure requirements.
In California, for example, banks do not have to give a Transfer Disclosure Statement,
a document that typically requires sellers to tell you about any defects they are informed of.
By hiring Homestead Properties, LTD, you can rest assured knowing all parties are fulfilling Georgia state disclosure requirements.
Are REO properties a bargain in Cartersville,?
It is sometimes believed that any foreclosure must be a bargain and a possibility for easy money. This isn't necessarily the case. You have to be prudent about buying a REO if your intent is make money. Even though the bank is usually eager to sell it quickly, they are also motivated to minimize any losses.
When considering the value of REO property, 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 flipping foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.
Ready to make an offer?
Most lenders have a department dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will frequently use 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 about the condition of the property and what their process is for receiving offers. Since banks almost always 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 withdraw the offer if you find it.
As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.
Once you've submitted your offer, you can expect the bank to respond with a counter offer. From there it will be up to you to decide whether to accept their counter, or submit another counter offer.
Be aware, you'll be working with a process that most likely involves a group of people at the bank, and they don't work evenings or weekends. It's typical for the process of offers and counter offers to take days or even weeks. Homestead Properties, LTD is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.
Homestead Properties, LTD 222 E. Main Street Cartersville,, GA 30120
When considering the value of REO property, 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 flipping foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.
