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Purchasing REO property or a foreclosure in Tucker?
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Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
For more information, just contact me through my site or e-mail me. I'm happy to answer questions you have regarding real estate foreclosures.
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What is an REO?
"REO" or Real Estate Owned are homes which have been foreclosed upon that the bank or mortgage company currently possesses. This is unlike a property 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. And on top of all that, you'll get the property completely as is. That may involve standing liens and even current tenants that may require expulsion.
A bank-owned property, on the contrary, is a much neater and attractive deal. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The lender will see 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.
Do be aware 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 typically requires sellers to disclose any defects of which they are aware.
By hiring Best Realty LLC, you can rest assured knowing all parties are fulfilling Georgia state disclosure requirements.
Is REO property in Tucker a bargain?
It is sometimes believed that any foreclosure must be a steal and a chance for easy money. This often isn't true. You have to be prudent about buying a REO if your intent is make money. While it's true that the bank is usually eager to sell it fast, they are also looking to get as much as they can for it.
When contemplating what to pay for a foreclosure, 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.
There are bargains with potential to make money, and many people do very well buying foreclosures. But there are also many REOs that are not good buys and may lose money.
Prepared to make an offer?
Most banks have staff dedicated to REO that you'll work with while buying REO property from them. Typically 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 regarding the condition of the property and what their process is for getting offers. Since banks usually sell REO properties "as is", you may want 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.
As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.
Once you've submitted your offer, it's customary for the bank to respond with a counter offer. Then it will be your decision whether to accept their counter, or make another counter offer.
Realize, you'll be dealing with a process that usually involves a group of people at the bank, and they don't work evenings or weekends. It's not unusual for there to be days or even weeks of negotiating back and forth.
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