Making an offer on REO property or a foreclosure in Prescott?


	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 happy to answer any questions you have regarding Prescott real estate foreclosures.

What is an REO?

"REO" is Real Estate Owned. These are properties which have completed the foreclosure process and are presently possessed by the bank or mortgage company. This is not the same as a property up for foreclosure auction. Realty Executives Northern Arizona has experience to share with foreclosures and bank owned properties in Prescott, Arizona

Realty Executives Northern Arizona has experience to share with foreclosures and bank owned properties in Prescott, Arizona

If you buy 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 ready to pay with cash in hand. Finally, you'll get the property totally as is. That possibly could involve prevailing liens and even current residents that may require removal.

A bank-owned property, on the other hand, is a much neater and attractive transaction. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The bank will deal with the elimination of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.

Do be aware that REOs may be exempt from typical disclosure requirements. For example, in California, banks are not required to give a Transfer Disclosure Statement, a document that usually requires sellers to disclose any defects they are aware of. By hiring Realty Executives Northern Arizona, you can rest assured knowing all parties are fulfilling Arizona state disclosure requirements.

Are REO properties a bargain in Yavapai County?

It is frequently presumed that any REO must be a good deal and an opportunity for guaranteed profit. This isn't necessarily the case. You have to be cautious about buying a repossession if your intent is make money. While it's true that the bank is often anxious to offload it quickly, they are also looking to minimize any losses.

Realty Executives Northern Arizona has experience to share with foreclosures and bank owned properties in Prescott, Arizona

When considering 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. The bargains with money making potential exist, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and may lose money.

Ready to make an offer?

Most lenders have staff dedicated to REO that you'll work with in buying REO property from them. Normally 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 what they know concerning the condition of the property and what their process is for accepting offers. Since banks usually sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unseen damage and terminate the offer if you find it. As with making any offer on Prescott real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

After you've submitted your offer, it's customary for the bank to make a counter offer. Then it will be your decision whether to accept their counter, or make another counter offer. Be aware, you'll be contending with a process that most likely involves several people at the bank, and they don't work evenings or weekends. It's not unusual for there to be days or even weeks of going back and forth.