Interested in REO property or a foreclosure in Alta Loma, CA 91701?


	Smart consumers will turn to a seasoned pro when considering a foreclosed property. If you have questions about real estate in Alta Loma, CA 91701, California, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are houses which have completed the foreclosure process and are presently held by the bank or mortgage company. This is different than real estate up for foreclosure auction. Century21 Experience has experience to share with foreclosures and bank owned properties in Alta Loma, CA 91701, California

Century21 Experience has experience to share with foreclosures and bank owned properties in Alta Loma, CA 91701, California

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. The buyer must also be prepared to pay with cash in hand. Finally, you'll get the property totally as is. That could include existing liens and even current tenants that may require eviction.

A bank-owned property, by contrast, is a more tidy and attractive option. The REO property didn't 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 organize for the issuance of a title insurance policy to the buyer at closing.

Note that REOs may be exempt from standard disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that normally requires sellers to tell you about any defects of which they are knowledgeable. By hiring Century21 Experience, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Are REO properties a bargain in Alta Loma, CA 91701?

It's occasionally believed that any REO must be a steal and a possibility for guaranteed profit. This simply isn't true. You have to be prudent about buying a REO if your intent is make a profit. Even though the bank is typically anxious to sell it quickly, they are also motivated to get as much as they can for it.

Century21 Experience has experience to share with foreclosures and bank owned properties in Alta Loma, CA 91701, California

When contemplating the value of 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. It is possible to find REOs with money-making potential, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and may not be money makers.

Time to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with while buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.

Before 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 their knowledge concerning the condition of the property and what their process is for getting 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 hidden damage and retract the offer if you find it. If, as a buyer, you can provide documentation demonstrating 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 is generally true for any real estate offer.)

After you've presented your offer, you can expect the bank to respond with a counter offer. Then it will be your choice whether to accept their counter, or submit another counter offer. Your transaction might be settled in a single day, but that's usually not the case. 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.