Looking for REO property or a foreclosure?


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

What's an REO?

"REO" is short for Real Estate Owned. These are houses which have completed the foreclosure process that the bank or mortgage company now owns. This differs from a property up for foreclosure auction. MarThel Real Estate has experience to share with foreclosures and bank owned properties in West Covina, California

MarThel Real Estate has experience to share with foreclosures and bank owned properties in West Covina, California

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. The buyer must also be able to pay with cash in hand. Finally, you'll receive the property completely as is. That may consist of standing liens and even current residents that may require eviction.

A bank-owned property, by contrast, is a much cleaner and attractive deal. The REO property did not find a buyer during foreclosure auction. Now the bank owns it. The bank will handle the elimination of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from normal 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 disclose any defects they are informed of. By hiring MarThel Real Estate, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Is REO property in West Covina a bargain?

It is commonly thought that any REO must be a bargain and a chance for guaranteed profit. This frequently isn't true. You have to be prudent about buying a repossession if your intent is to make money off of it. Even though the bank is usually anxious to sell it soon, they are also motivated to minimize any losses.

MarThel Real Estate has experience to share with foreclosures and bank owned properties in West Covina, California

When contemplating what to pay for 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. The bargains with money making potential exist, and many people do very well buying and selling foreclosures. However 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 a department dedicated to REO that you'll work with when buying REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.

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 their knowledge regarding the condition of the property and what their process is for getting offers. Since banks almost always 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 retract 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 goes for any type of real estate offer.)

After you've made your offer, you can expect the bank to counter offer. Then it will be your choice whether to accept their counter, or submit another counter offer. Your deal might be settled in a single day, but that's rare. 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.