Purchasing REO property or a foreclosure in Midwest City?


	Smart consumers will turn to a seasoned pro when considering a foreclosed property.

What is an REO?

"REO" or Real Estate Owned are houses which have completed the foreclosure process and are now owned by the bank or mortgage company. This differs from a property up for foreclosure auction. Beth Atkinson has experience to share with foreclosures and bank owned properties in Midwest City, Oklahoma

Beth Atkinson has experience to share with foreclosures and bank owned properties in Midwest City, Oklahoma

If you buy 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 ready to pay with cash in hand. Finally, you'll receive the property entirely as is. That could involve existing liens and even current residents that need to be kicked out.

A bank-owned property, on the contrary, is a much cleaner and attractive transaction. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The bank will deal with 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 typical disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to tell you about any defects they are informed of. By hiring Beth Atkinson, you can rest assured knowing all parties are fulfilling Oklahoma state disclosure requirements.

Are REO properties a bargain in Oklahoma County?

It is occasionally thought that any foreclosure must be a steal and a possibility for guaranteed profit. This isn't always the case. You have to be very careful about buying a REO if your intent is to make money off of it. While it's true that the bank is often eager to offload it quickly, they are also looking to minimize any losses.

Beth Atkinson has experience to share with foreclosures and bank owned properties in Midwest City, Oklahoma

Look carefully at the listing and sales prices of similar homes 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. The bargains with money making potential exist, and many people do very well buying foreclosures. Still there are also many REOs that are not good buys and may not be money makers.

Ready to make an offer?

Most banks have staff dedicated to REO that you'll work with in buying REO property from them. Usually 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 their knowledge concerning the condition of the property and what their process is for accepting offers. Since banks most commonly sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for unseen damage and retract the offer if you find it. As with making any offer on real estate, providing documentation of your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

Once you've submitted your offer, you can expect the bank to counter offer. From there it will be your decision whether to accept their counter, or offer a counter to the counter offer. Your transaction might be settled in one 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.