Purchasing REO property or a foreclosure in Rolling Hills Estates?


	Purchasing a bank-owned property is not something to be taken casually. For more information, just contact me through my site or e-mail me. I'm happy to answer questions you have about real estate foreclosures.

What is an REO?

"REO" or Real Estate Owned are properties which have been through foreclosure that the bank or mortgage company currently owns. This is unlike a property up for foreclosure auction. Peninsula Properties has experience to share with foreclosures and bank owned properties in Rolling Hills Estates, California

Peninsula Properties has experience to share with foreclosures and bank owned properties in Rolling Hills Estates, California

When buying 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. You must also be able to pay with cash in hand. And on top of all that, you'll accept the property entirely as is. That could involve prevailing liens and even current residents that may require expulsion.

A bank-owned property, by contrast, is a much cleaner and attractive proposition. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The lender will take care of the removal 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 Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to disclose any defects of which they are informed. By hiring Peninsula Properties, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Am I assured a low price when purchasing an REO property in Rolling Hills Estates?

It is frequently presumed that any foreclosure must be a bargain and a possibility for guaranteed profit. This simply isn't true. You have to be cautious about buying a repossession if your intent is to make money off of it. Even though the bank is often eager to offload it quickly, they are also motivated to minimize any losses.

Peninsula Properties has experience to share with foreclosures and bank owned properties in Rolling Hills Estates, California

When contemplating what to pay for 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. There are bargains with potential to make money, and many people do very well buying and selling foreclosures. Still there are also many REOs that are not good buys and may not be money makers.

Time to make an offer?

Most mortgage companies 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 usually hire a listing agent.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about their knowledge concerning the condition of the property and what their process is for accepting 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 unseen damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation showing your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any real estate offer.)

After you've submitted your offer, it's customary for the bank to make a counter offer. Then it will be your choice whether to accept their counter, or make another counter offer. Your transaction could 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.