Buying REO property or a foreclosure in Bonita?


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

What's an REO?

"REO" or Real Estate Owned are homes which have been foreclosed upon that the bank or mortgage company currently possesses. This differs from a property up for foreclosure auction. Realty World West has experience to share with foreclosures and bank owned properties in Bonita, California

Realty World West has experience to share with foreclosures and bank owned properties in Bonita, California

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. The buyer must also be willing to pay with cash in hand. To top everything off, you'll get the property totally as is. That could include prevailing liens and even current denizens that need to be removed.

A bank-owned property, conversely, is a more tidy and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The bank will see to 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.

You should be aware that REOs may be exempt from typical disclosure requirements. In California, for example, banks do not have to give a Transfer Disclosure Statement, a document that typically requires sellers to make known any defects they are aware of. By hiring Realty World West, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Is REO property in Bonita a bargain?

It is commonly thought that any foreclosure must be a steal and a chance for easy money. This frequently isn't true. You have to be very careful about buying a repossession if your intent is profit from the sale. While it's true that the bank is often eager to offload it promptly, they are also motivated to get as much as they can for it.

Realty World West has experience to share with foreclosures and bank owned properties in Bonita, California

When pondering 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. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.

Time to make an offer?

Most banks have staff dedicated to REO that you'll work with when buying REO property from them. Commonly 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 learn as much as you can about what they know about the condition of the property and what their process is for taking offers. Since banks most commonly sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unseen damage and terminate the offer if you find it. If, as a buyer, you can provide documentation demonstrating your ability to pay, 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. From there it will be your choice whether to accept their counter, or offer a counter to the counter offer. Your transaction could 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. Realty World West is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.