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Looking for REO property or a foreclosure in Columbus?
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Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
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What is an REO?
"REO" is short for Real Estate Owned. These are properties which have completed the foreclosure process that the bank or mortgage company presently holds. This is different than 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 accumulated during the foreclosure process. The buyer must also be prepared to pay with cash in hand. Finally, you'll get the property entirely as is. That possibly will comprise of standing liens and even current tenants that may require eviction.
A bank-owned property, conversely, is a much neater and attractive proposition. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The lender will attend to the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from standard disclosure requirements.
For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement,
a document that normally requires sellers to reveal any defects of which they are informed.
By hiring Jeff Miller,GRI / RE/MAX Advantage Realty, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.
Am I assured a low price when investing in an REO property in Columbus?
It's sometimes thought that any REO must be a good buy and a possibility for easy money. This isn't necessarily the case. You have to be prudent about buying a repossession if your intent is make a profit. Even though the bank is usually anxious to offload it fast, they are also looking 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 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 mortgage companies have staff dedicated to REO that you'll work with while buying REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.
Prior to 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 regarding the condition of the property and what their process is for receiving 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 hidden damage and terminate the offer if you find it.
As with making any offer on real estate, providing documentation proving your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.
Once you've made your offer, you can expect the bank to respond with a counter offer. Then it will be your decision 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.
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Jeff Miller,GRI / RE/MAX Advantage Realty 177 North Trade Street Tryon, NC 28782
Phone: Toll Free Phone: Cell: Fax: Why Get An Inspection? | Contact Me | 1031 Exchange | "Morris" The Horse | Polk County Tidbits | Closing Costs | Real Estate Glossary | My Listings | Home | Your Buying Power | Staging Checklist | Search WNC MLS | Site Map | Fixed Rate Mtg Calc | The Kitchen | Improvements That Pay Copyright © 2012 Jeff Miller,GRI / RE/MAX Advantage Realty
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