Interested in REO property or a foreclosure in Reynoldsburg?
|Savvy consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. Should you have questions about real estate in Reynoldsburg, Ohio, call me or send me an e-mail.|
What's an REO?"REO" or Real Estate Owned are houses which have completed the foreclosure process that the bank or mortgage company presently holds. This differs from 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 accumulated during the foreclosure process. The buyer must also be ready to pay with cash in hand. To top everything off, you'll receive the property entirely as is. That may include standing liens and even current residents that need to be put out.
A bank-owned property, on the contrary, is a more tidy and attractive proposition. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The lender will attend 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 instance, in California, banks are not required to give a Transfer Disclosure Statement, a document that usually requires sellers to reveal any defects they are informed of. By hiring Schneider, Keaton & Co., you can rest assured knowing all parties are fulfilling Ohio state disclosure requirements.
Am I assured a low price when purchasing a bank owned property in Reynoldsburg?It is sometimes presumed that any foreclosure must be a steal and an opportunity for guaranteed profit. This often isn't true. You have to be prudent about buying a REO if your intent is to make money off of it. Even though the bank is often eager to offload it fast, they are also looking to minimize any losses.
When considering the value of a foreclosure, 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 flipping foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.
Time to make an offer?Most lenders have staff dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will typically hire a listing agent.
Prior to 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 regarding 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 hidden damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation proving your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any real estate offer.)
After you've presented your offer, you can expect the bank to respond with a counter offer. At this point it will be your decision whether to accept their counter, or offer a counter to the counter offer. Realize, you'll be contending with a process that most likely involves a group of 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.