Interested in REO property or a foreclosure in Palos Verdes Estates?


	Purchasing a bank-owned property is not something to be taken lightly. For more information, you can contact me through my site or e-mail me. I'm glad to address questions you have regarding real estate foreclosures.

What is an REO?

"REO" means Real Estate Owned. These are houses which have been foreclosed upon and are presently owned by the bank or mortgage company. This is different than a property up for foreclosure auction. RE/MAX Palos Verdes Realty has experience to share with foreclosures and bank owned properties in Palos Verdes Estates, California

RE/MAX Palos Verdes Realty has experience to share with foreclosures and bank owned properties in Palos Verdes Estates, California

When buying 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. And on top of all that, you'll receive the property totally as is. That could include existing liens and even current occupants that may require removal.

A bank-owned property, by contrast, is a much neater and attractive deal. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The bank will take care of 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.

Do be aware that REOs may be exempt from standard disclosure requirements. For example, in California, banks do not have to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to make known any defects of which they are informed. By hiring RE/MAX Palos Verdes Realty, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Am I guaranteed a bargain when investing in a bank owned property in Palos Verdes Estates?

It is occasionally presumed that any foreclosure must be a good deal and a chance for easy money. This isn't necessarily true. You have to be prudent about buying a repossession if your intent is make money. Even though the bank is usually anxious to offload it quickly, they are also looking to get as much as they can for it.

RE/MAX Palos Verdes Realty has experience to share with foreclosures and bank owned properties in Palos Verdes Estates, California

When considering the value of 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 flipping foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.

Prepared 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 contract with 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 what they know regarding the condition of the property and what their process is for receiving offers. Since banks most commonly sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unknown damage and withdraw the offer if you find it. As with making any offer on real estate, providing documentation showing your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

After you've made your offer, you can expect the bank to respond with a counter offer. From there it will be your choice whether to accept their counter, or submit another counter offer. Your deal could be settled in one day, but that's rare. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. RE/MAX Palos Verdes Realty is accustomed to these situations and will work to ensure there are no undue delays.