In today's market, there's a great deal of opportunity to buy terrific homes at a significant savings. Purchasing an REO (real estate owned)/foreclosed property may not be for everyone. Please contact me to discuss this in further detail with in you person as each person's situation is unique. I want you to be aware of some of the challenges involved in the REO process.
In the meantime:
1. REO & Banked Owned Property List- Email me and I will send you a recent list. Please include the particular area of town your are interested in so I can send you regular recurring notification of REO properties in that area. I need your complete email address, name, current address and phone number to arrange this free service.
2. Lender Compliance- If this is a purchase for your personal residence, then it's imperative to speak with your lender about condition qualifications. Most lenders in today's market are picky about loans for REO properties. In essence, they don't want the new owner to be saddled with a great deal of repairs. Many REO properties have had deferred maintenance and thus could have a bad roof, non-working furnace, etc. Knowing the guidelines upfront will save time!
3. Offers and Responses- Typically REO properties are managed by banks or a 3rd party liquidator. They traditionally keep banker hours. If you see the perfect REO home on the weekend, it may be Monday until an offer can be submitted. It may take a fews days to get a response from the banks review committee.
4. Act Quickly- The key to success in the REO/Foreclosure business is act quickly when you find a property that you like. There are many people out there looking for deals too. It may take 2-5 days to see how the offer is received. It's a good idea to make your best offer first so you can be in the negotiating game.
5. "As Is" Condition- Most will be listed under an "as is" condition. You should always plan to have a home inspection preformed, and it is arguably even more important to include one when you are looking to buy a fixer upper. Structural defects are normally not visible to the untrained eye, yet will cost much more to repair than the obvious cosmetic fix-ups. Most licensed home inspectors will not only detail the defects that they uncover, but can also give you a good idea of the costs involved in fixing them.
6. The Current Market- Keep in mind in this market, private homeowners are pricing to be competitive with the REOs. Therefore if it's a personal purchase, it's good to keep an open mind to the entire market inventory.
Please contact me to help you locate the right property for you!