Interested in REO property or a foreclosure in St. Robert?
Just as with any property purchase, your wisest move is to hire a professional real estate agent.
For more information, simply contact me through my site or e-mail me. I'm happy to answer 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 presently possesses. This differs from real estate up for foreclosure auction.
When buying 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 willing to pay with cash in hand. To top everything off, you'll receive the property totally as is. That might involve prevailing liens and even current occupants that need to be put out.
A bank-owned property, on the contrary, is a more tidy and attractive transaction. 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 plan for the issuance of a title insurance policy to the buyer at closing.
Take notice that REOs may be exempt from typical disclosure requirements.
For example, in California, banks are not required to give a Transfer Disclosure Statement,
a document that typically requires sellers to make known any defects they are knowledgeable of.
By hiring Century 21 Prestige Real Estate Inc., you can rest assured knowing all parties are fulfilling Missouri state disclosure requirements.
Am I guaranteed a bargain when buying a bank owned property in St. Robert?
It is occasionally assumed that any foreclosure must be a bargain and an opportunity for easy money. This frequently isn't true. You have to be prudent about buying a repossession if your intent is to make money off of it. While it's true that the bank is often eager to sell it promptly, they are also looking to get as much as they can for it.
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 remodeling necessary to prepare the house for resale or moving in.
It is possible to find REOs with money-making potential, 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.
Prepared to make an offer?
Most mortgage companies have a department dedicated to REO that you'll work with when buying REO property from them. Commonly 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 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 usually sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for hidden damage and retract the offer if you find it.
As with making any offer on real estate, providing documentation proving your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.
Once you've made your offer, it's customary for the bank to counter offer. From there it will be your decision whether to accept their counter, or offer a counter to the counter offer.
Your transaction could be final in a single day, but that's rare. 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. Century 21 Prestige Real Estate Inc. is accustomed to these situations and will work to ensure there are no unnecessary delays.
Fort Leonard Wood and the surrounding communities have many investment properties such as REO, Repossessed properties and relocation properties - drop me an email if you would like automatic data sheets to be emailed directly to you as these properties become available. Beacham6@yahoo.com
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 remodeling necessary to prepare the house for resale or moving in.
It is possible to find REOs with money-making potential, 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.
