Making an offer on REO property or a foreclosure in Newton Center?


	Making an offer on a bank-owned property is not something to be taken lightly. For more information, you can contact me through my site or e-mail me. I'm happy to address questions you have about real estate foreclosures.

What is an REO?

"REO" or Real Estate Owned are homes which have completed the foreclosure process that the bank or mortgage company now possesses. This differs from real estate up for foreclosure auction. Move 2 Boston Group of William Raveis R.E. has experience to share with foreclosures and bank owned properties in Newton Center, Massachusetts

Move 2 Boston Group of William Raveis R.E. has experience to share with foreclosures and bank owned properties in Newton Center, Massachusetts

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. The buyer must also be prepared to pay with cash in hand. To top everything off, you'll receive the property completely as is. That possibly will consist of standing liens and even current tenants that need to be kicked out.

A bank-owned property, on the other hand, is a much neater and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The lender 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 Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to reveal any defects of which they are aware. By hiring Move 2 Boston Group of William Raveis R.E., you can rest assured knowing all parties are fulfilling Massachusetts state disclosure requirements.

Is REO property in Newton Center a bargain?

It is occasionally assumed that any REO must be a steal and an opportunity for easy money. This isn't necessarily 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 typically eager to sell it promptly, they are also looking to minimize any losses.

Move 2 Boston Group of William Raveis R.E. has experience to share with foreclosures and bank owned properties in Newton Center, Massachusetts

Look closely at the listing and sales prices of competing homes in the neighborhood when making an offer on 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 not likely to turn a profit.

Ready to make an offer?

Most lenders have a department dedicated to REO that you'll work with while buying REO property from them. Normally 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 what they know about the condition of the property and what their process is for getting offers. Since banks typically sell REO properties "as is", it's often prudent 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. If, as a buyer, you can provide documentation demonstrating your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any type of real estate offer.)

Once you've presented your offer, it's customary for the bank to counter offer. Then it will be up to you to decide whether to accept their counter, or submit another counter offer. Be aware, you'll be working with a process that probably involves several people at the bank, and they don't work evenings or weekends. It's typical for the process of offers and counter offers to take days or even weeks. Move 2 Boston Group of William Raveis R.E. is accustomed to these situations and will work to ensure there are no undue delays.