|
|
Looking for REO property or a foreclosure in Dallas?
 |
 |
 |
Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
For more information, simply contact me through my site or e-mail me. I'm glad to address questions you have regarding real estate foreclosures.
|
|
|
|
 |
What's an REO?
"REO" is Real Estate Owned. These are properties which have completed the foreclosure process that the bank or mortgage company presently possesses. This is unlike real estate up for foreclosure auction.
When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accrued during the foreclosure process. The buyer must also be able to pay with cash in hand. Finally, you'll accept the property 100% as is. That possibly will consist of standing liens and even current residents that may require expulsion.
A bank-owned property, conversely, is a much neater and attractive transaction. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The lender will handle the elimination of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.
Take notice that REOs may be exempt from normal disclosure requirements.
For example, in California, banks are not required to give a Transfer Disclosure Statement,
a document that ordinarily requires sellers to make known any defects they are aware of.
By hiring Don Thomas Realty Group, you can rest assured knowing all parties are fulfilling Texas state disclosure requirements.
Is REO property in Dallas a bargain?
It's commonly believed that any foreclosure must be a good deal and an opportunity for guaranteed profit. This frequently isn't true. You have to be prudent about buying a REO if your intent is to make money off of it. Even though the bank is typically eager to offload it fast, they are also motivated to get as much as they can for it.
When pondering what to pay for a foreclosure, carefully analyze 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.
There are bargains with potential to make money, and many people do very well flipping 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 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 accepting offers. Since banks usually 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.
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 real estate offer.)
Once you've presented your offer, it's customary for the bank to respond with a counter offer. At this point it will be your choice whether to accept their counter, or make another counter offer.
Be aware, you'll be working with a process that probably involves several people at the bank, and they don't work evenings or weekends. It's typical for the process of offers and counter offers to take days or even weeks. Don Thomas Realty Group 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.
|
|
|
