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Looking for REO property or a foreclosure in Dutchess County ?
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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 glad to answer questions you have regarding real estate foreclosures. |
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What is an REO?"REO" is short for Real Estate Owned. These are homes which have been through foreclosure and are presently possessed by the bank or mortgage company. This is unlike real estate 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 accrued during the foreclosure process. You must also be ready to pay with cash in hand. And on top of all that, you'll accept the property entirely as is. That might consist of existing liens and even current occupants that need to be put out.
A bank-owned property, conversely, is a more tidy and attractive transaction. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The bank will deal with 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.
Note that REOs may be exempt from typical disclosure requirements. For instance, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that ordinarily requires sellers to disclose any defects of which they are knowledgeable. By hiring ERA Team IV Homes, you can rest assured knowing all parties are fulfilling New York state disclosure requirements.
Am I assured a good deal when investing in a bank owned property
in Dutchess County ?It's sometimes presumed that any REO must be a good deal and an opportunity for guaranteed profit. This simply isn't true. You have to be prudent about buying a REO if your intent is make money. While it's true that the bank is usually anxious to sell it fast, they are also motivated to get as much as they can for it.
 Look closely at the listing and sales prices of competing properties in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. It is possible to find REOs with money-making potential, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.
Ready to make an offer?Most banks have a department dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will usually 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 almost always sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for hidden damage and retract the offer if you find it. As with making any offer on real estate, providing documentation proving your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.
After you've made your offer, it's customary for the bank to make a counter offer. At this point it will be up to you to decide whether to accept their counter, or make another 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.
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