Purchasing REO property or a foreclosure in Antioch or the Greater Nashville Area?
Foreclosed upon and bank owned property purchases require the assistance of an experience professional. If you have any questions regarding real estate in Nashville, Tennessee, call us
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What's an REO?
"REO" or Real Estate Owned are houses which have gone through foreclosure that the bank or mortgage company currently holds. This differs from 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 amassed during the foreclosure process. You must also be willing to pay with cash in hand. And on top of all that, you'll receive the property completely as is. That might comprise of standing liens and even current tenants that may require eviction.
A bank-owned property, conversely, is a more tidy and attractive deal. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The lender will handle 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.
Take notice that REOs may be exempt from typical disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that ordinarily requires sellers to tell you about any defects of which they are knowledgeable. By hiring Welcome Home Realty™, you can rest assured knowing all parties are fulfilling Tennessee state disclosure requirements.
Is REO property in Brentwood a bargain?
It is commonly presumed that any REO must be a good buy and a possibility for easy money. This often isn't true. You have to be prudent about buying a repossession if your intent is to make a profit. While it's true that the bank is typically eager to sell it soon, they are also motivated to minimize any losses.
When contemplating the value of a foreclosure, you need to look closely at 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 and selling foreclosures. Still, there are also many REOs that are not good buys and may not be money makers.
All set to make an offer?
Most lenders have staff dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will frequently hire a listing agent.
Before 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 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 unknown damage and cancel the offer if you find it. As with making any offer on real estate, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.
Once you've presented your offer, it's customary for the bank to respond with a counter offer. Then it will be your decision whether to accept their counter, or offer a counter to the counter offer. Your transaction could be settled in one day, but that's usually not the case. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Welcome Home Realty™ is accustomed to these situations and will work to ensure there are no undue delays.