Buying REO property or a foreclosure in the Delaware Valley?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. For more information, just contact me through my site or e-mail me. I'm happy to answer questions you have about real estate foreclosures.

What's an REO?

"REO" or Real Estate Owned are properties which have completed the foreclosure process and are now possessed by the bank or mortgage company. This is unlike real estate up for foreclosure auction. Beiler-Campbell Realtors has experience to share with foreclosures and bank owned properties in Kennett Square, Pennsylvania

Beiler-Campbell Realtors has experience to share with foreclosures and bank owned properties in Kennett Square, Pennsylvania

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 get the property totally as is. That possibly will comprise of current liens and even current tenants that need to be evicted.

A bank-owned property, on the other hand, is a much neater and attractive option. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The bank will see 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.

Do be aware that REOs may be exempt from normal disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to reveal any defects they are knowledgeable of. By hiring Beiler-Campbell Realtors, you can rest assured knowing all parties are fulfilling Pennsylvania or Delaware state disclosure requirements.

Are REO properties a bargain?

It is occasionally presumed that any REO must be a good buy and a chance for guaranteed profit. This isn't necessarily the case. You have to be prudent about buying a repossession if your intent is make money. Even though the bank is usually eager to offload it fast, they are also looking to minimize any losses.

Beiler-Campbell Realtors has experience to share with foreclosures and bank owned properties in Kennett Square, Pennsylvania

Look closely at the listing and sales prices of comparable properties in the neighborhood when making an offer on an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in. There are bargains with potential to make money, and many people do very well buying and selling foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.

Time 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 frequently 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 discover as much as you can about their knowledge concerning the condition of the property and what their process is for taking offers. Since banks almost always sell REO properties "as is", you may want to 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 demonstrating 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.)

Once you've made 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 deal could be final 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. Beiler-Campbell Realtors is used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.