Making an offer on REO property or a foreclosure in Gilbert?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional.

What's an REO?

"REO" or Real Estate Owned are homes which have completed the foreclosure process and are presently held by the bank or mortgage company. This differs from real estate up for foreclosure auction. Realty Executives East Valley has experience to share with foreclosures and bank owned properties in Gilbert, Arizona

Realty Executives East Valley has experience to share with foreclosures and bank owned properties in Gilbert, Arizona

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. You must also be able to pay with cash in hand. Finally, you'll receive the property entirely as is. That possibly may consist of prevailing liens and even current occupants that may require eviction.

A bank-owned property, on the other hand, is a more tidy and attractive deal. The REO property was unable to find a buyer during foreclosure auction. The bank now owns it. The lender will handle the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.

Do be aware that REOs may be exempt from standard disclosure requirements. In California, for example, banks do not have to give a Transfer Disclosure Statement, a document that normally requires sellers to reveal any defects of which they are informed. By hiring Realty Executives East Valley, you can rest assured knowing all parties are fulfilling Arizona state disclosure requirements.

Am I assured a good deal when investing in a bank owned property in Gilbert?

It is occasionally presumed that any foreclosure must be a steal and an opportunity for guaranteed profit. This isn't necessarily the case. You have to be very careful about buying a repossession if your intent is make money. Even though the bank is usually anxious to sell it promptly, they are also motivated to minimize any losses.

Realty Executives East Valley has experience to share with foreclosures and bank owned properties in Gilbert, Arizona

When contemplating what to pay for REO property, 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. 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 may lose money.

All set to make an offer?

Most mortgage companies 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 contract with a listing agent.

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 what they know 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 cancel 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, you can expect the bank to counter offer. At this point it will be up to you to decide 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 usually not the case. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Realty Executives East Valley is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.