Purchasing REO property or a foreclosure in Glendale?


	Just as with any property purchase, your smartest move is to hire a professional real estate agent. For more information, simply contact me through my site or e-mail me. I'm glad to address any questions you have about real estate foreclosures.

What's an REO?

"REO" or Real Estate Owned are properties which have been foreclosed upon and are presently owned by the bank or mortgage company. This is not the same as a property up for foreclosure auction. Lisa Bartlett, REALTOR has experience to share with foreclosures and bank owned properties in Glendale, Arizona

Lisa Bartlett, REALTOR has experience to share with foreclosures and bank owned properties in Glendale, Arizona

If you buy 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. You must also be able to pay with cash in hand. Finally, you'll accept the property entirely as is. That possibly may comprise of existing liens and even current residents that may require eviction.

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

Note that REOs may be exempt from standard disclosure requirements. For instance, in California, banks are not required to give a Transfer Disclosure Statement, a document that typically requires sellers to disclose any defects of which they are informed. By hiring Lisa Bartlett, REALTOR, you can rest assured knowing all parties are fulfilling Arizona state disclosure requirements.

Am I assured a low price when buying an REO property in Glendale?

It is occasionally assumed that any REO must be a bargain and a possibility for guaranteed profit. This isn't always the case. You have to be cautious about buying a REO if your intent is make money. While it's true that the bank is usually eager to offload it fast, they are also motivated to minimize any losses.

Lisa Bartlett, REALTOR has experience to share with foreclosures and bank owned properties in Glendale, Arizona

When pondering what to pay for 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. The bargains with money making potential exist, and many people do very well buying and selling foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

Time to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with when buying REO property from them. Normally 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 find out as much as you can about what they know regarding the condition of the property and what their process is for taking offers. Since banks typically 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 unseen damage and withdraw 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 holds for any type of real estate offer.)

After you've presented your offer, it's customary for the bank to make a counter offer. From there 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.