Purchasing REO property or a foreclosure in Chino Hills?


	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 answer any questions you have about real estate foreclosures.

What's an REO?

"REO" or Real Estate Owned are houses which have completed the foreclosure process and are now owned by the bank or mortgage company. This is not the same as real estate up for foreclosure auction. Remax Masters has experience to share with foreclosures and bank owned properties in Chino Hills, California

Remax Masters has experience to share with foreclosures and bank owned properties in Chino Hills, California

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. Finally, you'll accept the property totally as is. That could include current liens and even current tenants that need to be evicted.

A bank-owned property, by contrast, is a more tidy and attractive proposition. The REO property did not 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 plan for the issuance of a title insurance policy to the buyer at closing.

Do be aware that REOs may be exempt from standard disclosure requirements. In California, for example, banks are not required to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to reveal any defects they are informed of. By hiring Remax Masters, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Is REO property in Chino Hills a bargain?

It is sometimes thought that any foreclosure must be a good buy and a possibility for guaranteed profit. This isn't necessarily true. You have to be prudent about buying a repossession if your intent is profit from the sale. While it's true that the bank is usually anxious to offload it promptly, they are also looking to get as much as they can for it.

Remax Masters has experience to share with foreclosures and bank owned properties in Chino Hills, California

When contemplating 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. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.

Prepared to make an offer?

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

Since banks most commonly sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unseen damage and cancel the offer if you find it. If, as a buyer, you can provide documentation showing 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 type of real estate offer.)

After you've made your offer, you can expect the bank to counter offer. Then it will be up to you to decide whether to accept their counter, or make 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. Remax Masters is accustomed to these situations and will work to ensure there are no undue delays.