Interested in REO property or a foreclosure in Elk Grove?


	Savvy consumers will turn to a seasoned pro when considering a foreclosed property. Should you have any questions regarding real estate in Elk Grove, California, call me or send me an e-mail.

What's an REO?

"REO" stands for Real Estate Owned. These are properties which have completed the foreclosure process and are currently owned by the bank or mortgage company. This is different than real estate up for foreclosure auction. Landmark Properties has experience to share with foreclosures and bank owned properties in Elk Grove, California

Landmark Properties has experience to share with foreclosures and bank owned properties in Elk Grove, California

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. The buyer must also be willing to pay with cash in hand. Finally, you'll get the property totally as is. That could comprise of current liens and even current occupants that may require expulsion.

A bank-owned property, on the other hand, is a more tidy and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will take care of the removal of tax liens, evict occupants if needed and generally arrange 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 usually requires sellers to disclose any defects of which they are aware. By hiring Landmark Properties, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Is REO property in Elk Grove a bargain?

It's frequently assumed that any foreclosure must be a good buy 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 a profit. While it's true that the bank is usually eager to offload it quickly, they are also looking to get as much as they can for it.

Landmark Properties has experience to share with foreclosures and bank owned properties in Elk Grove, California

Look carefully at the listing and sales prices of comparable homes in the neighborhood when considering the purchase of 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 and selling foreclosures. But there are also many REOs that are not good buys and may not be money makers.

Prepared to make an offer?

Most lenders have a department dedicated to REO that you'll work with in buying REO property from them. Usually 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 find out as much as you can about their knowledge about the condition of the property and what their process is for getting offers. Since banks typically sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. If, as a buyer, you can provide documentation showing 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 made your offer, you can expect the bank to make a counter offer. At this point it will be your decision whether to accept their counter, or submit another counter offer. Be aware, you'll be working with a process that most likely involves a group of people at the bank, and they don't work evenings or weekends. It's not uncommon for the process of offers and counter offers to take days or even weeks.