Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
For more information, simply contact me through my site or e-mail me. I'm glad to answer questions you have about real estate foreclosures.
What is an REO?
"REO" is short for Real Estate Owned. These are homes which have been foreclosed upon and are presently possessed 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 accrued during the foreclosure process. The buyer must also be able to pay with cash in hand. And on top of all that, you'll get the property totally as is. That possibly will comprise of prevailing liens and even current tenants that may require removal.
A bank-owned property, on the contrary, is a much neater and attractive transaction. The REO property was unable to find a buyer during foreclosure auction. The bank now owns it. The bank will see to the elimination of tax liens, evict occupants if needed and generally organize 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 North Carolina, it is optional for foreclosures to have a Property Disclosure Statement,
a document that normally requires sellers to make known any defects they are aware of.
By hiring New Wave Real Estate, you can rest assured knowing all parties are fulfilling South Carolina state disclosure requirements.
Is REO property in Aynor a bargain?
It's occasionally believed that any REO must be a good deal and a chance for easy money. This often isn't true. You have to be cautious about buying a REO if your intent is make money. Even though the bank is usually anxious to offload it quickly, they are also motivated to get as much as they can for it.
When contemplating what to pay for REO property, carefully analyze 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.
It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. Still there are also many REOs that are not good buys and may not be money makers.
Prepared to make an offer?
Most banks 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.
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 their knowledge about the condition of the property and what their process is for getting offers. Since banks most commonly sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unseen damage and cancel the offer if you find it.
As with making any offer on real estate, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.
After you've made your offer, you can expect the bank to make a counter offer. From there it will be your decision whether to accept their counter, or make another counter offer.
Your deal might be settled in one 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. New Wave Real Estate is accustomed to these situations and will work to ensure there are no undue delays.
New Wave Real Estate 3026 Hwy 501 East PO Box 174 Aynor, SC 29511
When contemplating what to pay for REO property, carefully analyze 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.
It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. Still there are also many REOs that are not good buys and may not be money makers.