Making an offer on REO property or a foreclosure in Fall River?

Foreclosed upon and bank owned property purchases require the assistance of an experience professional. For more information, just contact me through my site or e-mail me. I'm happy to address any questions you have about real estate foreclosures.

What is an REO?

"REO" means Real Estate Owned. These are homes which have been foreclosed upon that the bank or mortgage company presently possesses. This is not the same as a property up for foreclosure auction. EZ Home Search Real Estate has experience to share with foreclosures and bank owned properties in Fall River, Massachusetts

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. The buyer must also be prepared to pay with cash in hand. Finally, you'll receive the property entirely as is. That might comprise of existing liens and even current denizens that need to be thrown out.

A bank-owned property, on the other hand, is a much cleaner and attractive transaction. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will deal with 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. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that typically requires sellers to reveal any defects they are informed of. By hiring EZ Home Search Real Estate, you can rest assured knowing all parties are fulfilling Massachusetts state disclosure requirements.

Are REO properties a bargain in Bristol County?

It is frequently believed that any foreclosure must be a steal and a chance for easy money. This simply isn't true. You have to be prudent about buying a REO if your intent is to make a profit. While it's true that the bank is typically eager to offload it promptly, they are also motivated to minimize any losses.

EZ Home Search Real Estate has experience to share with foreclosures and bank owned properties in Fall River, Massachusetts Look closely at the listing and sales prices of competing properties 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 not be money makers.

Ready to make an offer?

Most mortgage companies have staff dedicated to REO that you'll work with in 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 discover as much as you can about what they know concerning the condition of the property and what their process is for receiving offers. Since banks usually sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unknown damage and terminate the offer if you find it. If, as a buyer, you can provide documentation showing your ability to pay, 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 made your offer, you can expect the bank to counter offer. Then it will be your choice whether to accept their counter, or submit another counter offer. Your transaction might be final in one 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. EZ Home Search Real Estate is accustomed to these situations and will work to ensure there are no unnecessary delays.