Buying a Bank Owned Property
John Rodriguez
REO Properties
REO properties are also known as Real Estate Owned properties, they are a type of property owned by a lender after a repossession and auction process. Properties become REO properties after their ownership transfers from the original owner to the lending agent, usually due to failure to make mortgage payments. Below are some facts about REO properties.
-
What Makes a Property an REO Property?
-
A property is considered REO if it has been repossessed by the lending authority, and if that lending authority has been unable to transfer ownership of the property to a different, paying owner.
How Does a Property Become REO?
-
A property becomes REO if a lending agent repossesses it, tries to auction it for the amount due on the loan and fails to find a buyer. At that point, the property becomes an REO property under the ownership of the lender.
Who Owns REO Properties?
-
REO properties are almost always owned by the banks and other lending institutions, after repossession from a defaulted mortgage.
What Are the Benefits of Having REO Properties?
-
To the lending authority owning the property, there is little benefit to owning an REO property, as it represents an investment gone sour, meaning, an REO property is real estate that can't be sold at auction for the minimal price of what was owed in the loan, so every REO property owned is property that came at a loss to the lender.
Are REO Properties Available for Purchase?
-
REO properties are always available for purchase, and are often great deals. REO properties can be found by checking local Realtor listings.
-
The sharp down around in the economy opened up the foreclosure market. Homeowners across the country were forced to leave their homes because they were not able to make payments on their mortgages, and the market has yet to come back. Now is a perfect time for home buyers because the bank foreclosured market is suddenly full with properties in many neighborhoods across the country. Purchasing a foreclosed home has its own set of issues, but the current foreclosure market pricing far outweighs any potential issues. The economy will eventually turn around, so obtaining title to a foreclosure property now will likely have increased value in the future.
MAKING AN OFFER
Before making an offer, have your agent ask the following questions:
- Are there any inspection reports?
- What work has the bank agreed to?
- Is there a special "as is" form?
- How long does it take the bank to accept an offer?
- How does your agent deliver the offer?
Offers are usually FAXED to the bank. There is no formal presentation. Since there is no face-to-face presentation to the bank, provide the agent with a pre-qualification or a pre-approval letter Make your offer easy to accept.
If you are interested in purchasing a Bank Owned property please call Exit Realty Central @ 718-848-5900.
- Our Area 577
- Things To Do 577
- Open House Ozone Park 577
- Open House Hemptead 575
- Open Houses This Weekend 582
- Open House Hempstead 565
- Homes For Sale In Queens 577
- Homes For Sale Long Island 574
- Sell My Home 569
- Realtors In Queens 567
- Realtors In Ozone Park 570
- Exit Realty 568
- Top Real Estate Office In Queens 568
- Exit Realty Central 568
- How To List My Property 565
- Insurance 492
- Renters Insurance 491
- Apartments For Rent 491
- Open House Howard Beach 489
- Casa Para La Venta In Howard Beach 480
- Casa Para La Venta In Ozone Park 477
- Casa Para La Venta In Jamaica 475
- Short Sales 475
- Open House South Ozone Park 480
- Open House Floral Park 479
- Solar Panels 430
- Solar Heat 431
- Clean Energy 430
- Haunted Houses 259
- Howard Beach Motor Boat Club 422
- Pumpkin Patch 257
- Festivals 393
- Holiday Shopping 244
- Flea Markets 399
- Street Fairs 398
- Open House in Richmond Hill 2
- Our Sold Properties 8
- Open House Long Island 1
- Our New Listings 8
- Open House E. New York 3
- Commerical Listings 1