Looking for REO property or a foreclosure in Woodinville?
Savvy consumers will turn to a seasoned pro when considering a foreclosed property.
For more information, you can contact me through my site or e-mail me. I'm glad to address questions you have about real estate foreclosures.
What is an REO?
"REO" or Real Estate Owned are houses which have been through foreclosure and are now owned by the bank or mortgage company. This is unlike a property 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 accumulated during the foreclosure process. The buyer must also be ready to pay with cash in hand. To top everything off, you'll receive the property totally as is. That could consist of standing liens and even current tenants that need to be put out.
A bank-owned property, on the other hand, is a much cleaner and attractive proposition. The REO property did not find a buyer during foreclosure auction. Now the bank owns it. The lender will handle the removal of tax liens, evict occupants if needed and generally arrange 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 North Carolina, it is optional for foreclosures to have a Property Disclosure Statement,
a document that ordinarily requires sellers to tell you about any defects they are informed of.
By hiring Real Estate Website Pros.net 1-866-482-6791 -HIWEB.NET, you can rest assured knowing all parties are fulfilling Washington state disclosure requirements.
Is REO property in Woodinville a bargain?
It is frequently presumed that any REO must be a steal and a chance for guaranteed profit. This isn't necessarily the case. You have to be prudent about buying a repossession if your intent is to make money off of it. Even though the bank is typically anxious to offload it quickly, they are also motivated to minimize any losses.
Look carefully at the listing and sales prices of comparable homes in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in.
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 may lose money.
Prepared to make an offer?
Most lenders have a department 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 find out as much as you can about their knowledge about the condition of the property and what their process is for receiving 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 cancel the offer if you find it.
If, as a buyer, you can provide documentation demonstrating your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any real estate offer.)
Once you've submitted your offer, it's customary for the bank to counter offer. At this point it will be your choice whether to accept their counter, or offer a counter to the counter offer.
Be aware, you'll be working with a process that generally involves several people at the bank, and they don't work evenings or weekends. It's not uncommon for there to be days or even weeks of going back and forth. Real Estate Website Pros.net 1-866-482-6791 -HIWEB.NET is accustomed to these situations and will work to ensure there are no undue delays.
Real Estate Broker: Angela Hiroshima
Horizon Real Estate 7900 E. Green Lake Dr. N Ste 212, Suite 201
Look carefully at the listing and sales prices of comparable homes in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in.
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 may lose money.
