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


	Just as with any home purchase, your smartest move is to hire a professional real estate agent. For more information, you can contact me through my site or e-mail me. I'm happy to address any questions you have about real estate foreclosures.

What is an REO?

"REO" or Real Estate Owned are properties which have been through foreclosure and are currently owned by the bank or mortgage company. This is different than a property up for foreclosure auction. Short Sale Center has experience to share with foreclosures and bank owned properties in Carmel, California

Short Sale Center has experience to share with foreclosures and bank owned properties in Carmel, 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. You must also be able to pay with cash in hand. Finally, you'll accept the property totally as is. That possibly will involve current liens and even current occupants that need to be removed.

A bank-owned property, conversely, is a more tidy and attractive transaction. The REO property was unable to 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.

Note that REOs may be exempt from typical disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to make known any defects of which they are aware. By hiring Short Sale Center, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Is REO property in Carmel a bargain?

It is frequently believed that any foreclosure must be a bargain and a possibility for guaranteed profit. This isn't always true. You have to be very careful about buying a REO if your intent is make a profit. While it's true that the bank is typically eager to offload it quickly, they are also motivated to get as much as they can for it.

Short Sale Center has experience to share with foreclosures and bank owned properties in Carmel, California

When considering the value of 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. There are bargains with potential to make money, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and may not be money makers.

Ready to make an offer?

Most mortgage companies have staff 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 often use 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 their knowledge concerning the condition of the property and what their process is for getting offers. Since banks usually 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 terminate the offer if you find it. If, as a buyer, you can provide documentation proving 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 holds for any type of real estate offer.)

Once you've presented your offer, you can expect the bank to counter offer. Then it will be up to you to decide whether to accept their counter, or make another counter offer. Your transaction might be settled 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. Short Sale Center is accustomed to these situations and will work to ensure there are no undue delays.

With the right help, virtually any foreclosure situation can be successfully resolved. We have helped thousands of homeowners and we can help you too. When facing foreclosure Time is of the Essence. You MUST act fast to protect your rights and stop foreclosure. Many people who need foreclosure assistance simply do nothing and hope for a miracle. Don't fall into that trap!