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Making an offer on REO property or a foreclosure in Springboro? |
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What is an REO?"REO" is Real Estate Owned. These are properties which have been foreclosed upon that the bank or mortgage company presently possesses. This is different than a property up for foreclosure auction. 
When buying 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 get the property 100% as is. That may comprise of existing liens and even current occupants 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 bank 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.
Note 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 informed. By hiring Tiffanie Burney, you can rest assured knowing all parties are fulfilling Ohio state disclosure requirements.
Am I guaranteed a bargain when purchasing a bank owned property in Springboro?It is occasionally thought that any foreclosure must be a steal and a chance for guaranteed profit. This isn't necessarily true. You have to be prudent about buying a repossession if your intent is make money. While it's true that the bank is typically eager to sell it quickly, they are also motivated to minimize any losses.
 When pondering the value of 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 lose money.
Time to make an offer?Most mortgage companies have a department dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will usually use a listing agent.
Before 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 their knowledge about the condition of the property and what their process is for receiving offers. Since banks typically 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 retract the offer if you find it. If, as a buyer, you can provide documentation showing your ability to pay, 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.)
Once you've submitted your offer, it's customary for the bank to make a counter offer. From there it will be your decision whether to accept their counter, or offer a counter to the counter offer. Your transaction might be settled in one 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.
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Tiffanie Burney 305 E. Central Ave. Springboro, OH 45066
Phone: Cell: Fax: Copyright © 2012 Tiffanie Burney
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