Buying REO property or a foreclosure in Folly Beach?
Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. For more information, you can contact me through my site or e-mail me. I'm glad 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 been foreclosed upon and are now owned by the bank or mortgage company. This is not the same as real estate 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. Finally, you'll get the property 100% as is. That possibly may consist of existing liens and even current tenants that may require removal.
A bank-owned property, on the other hand, is a more tidy and attractive proposition. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The bank will handle 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.
Take notice 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 ordinarily requires sellers to tell you about any defects they are aware of. By hiring Randy and Ronnie Winks - Exit Realty The Tracey Group, you can rest assured knowing all parties are fulfilling South Carolina state disclosure requirements.
Are REO properties a bargain in Folly Beach?
It's frequently believed that any REO must be a good buy and an opportunity for guaranteed profit. This simply isn't true. You have to be prudent about buying a REO if your intent is make money. Even though the bank is often eager to offload it fast, they are also motivated to minimize any losses.
Look closely at the listing and sales prices of similar properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and may lose money.
Prepared to make an offer?
Most banks have staff dedicated to REO that you'll work with while buying REO property from them. Usually 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 what they know about the condition of the property and what their process is for taking offers. Since banks almost always 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 cancel the offer if you find it. As with making any offer on real estate, providing documentation showing your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.
Once you've presented your offer, it's customary for the bank to counter offer. From there it will be your decision whether to accept their counter, or submit another counter offer. Understand, you'll be dealing with a process that probably involves a group of people at the bank, and they don't work evenings or weekends. It's quite common for the process of offers and counter offers to take days or even weeks. Randy and Ronnie Winks - Exit Realty The Tracey Group is accustomed to these situations and will work to ensure there are no undue delays.
Randy and Ronnie Winks - Exit Realty The Tracey Group
Look closely at the listing and sales prices of similar properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and may lose money.
