Below are properties that are active in the MLS. We are looking for buyers for these homes (click on the address to get the information about the property and pictures. NOTE; I am not the listing agent, nor do I represent the seller).
If you need help understanding Bank owned properties look past the property address for more information.
Buying bank owned properties
Everyone has seen the late night infomercials about how easy it is to buy real estate from the bank and make a quick buck. The reality is that it is not as easy as they make it sound. There is definitely buying opportunities available but you need to understand how this process works and who better than a certified R.E.O. expert like myself who will help you understand the process.
What is an R.E.O.?
R.E.O. stands for “Real Estate Owned”. These properties are now owed by the bank and free of any liens. Be aware that R.E.O.’s may be exempt from normal disclosure requirements. In the San Fernando Valley, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of.
How do banks sell R.E.O. properties?
Every bank is a little different when it comes to selling R.E.O. properties, but one thing remains the same. They all want the highest price possible, however sometimes they are more than willing to take a loss and move on.
Banks have assigned departments that specialize in handling only R.E.O. properties. When you make an offer to a bank on an R.E.O. property and your offer gets accepted, you may experience a delay getting a final approval because the offer may need to be approved by someone else at the bank. Typically, it can take an extra 3-7 days for your offer to get final approval in writing.
What is the condition of the property?
Be prepared to buy the property as is, or make a strong offer to get your repairs made. Banks will always push to sell the property "As Is" to avoid additional costs. Section 1 termite clearance is typically still covered by the bank but you will have to work hard to have additional items covered. Working with an aggressive realtor like myself can help your negotiations.
In addition, make sure you get a good inspection of the property so you know exactly what you are buying. It is important to have a good physical inspection of the property.
Most contracts call for a time period to back out of the transaction should you find problems with the home. Make sure you have enough time to back out of the transaction if you need to and do not jeopardize your deposit.
Even though the bank wants to sell the property "As Is", make sure you get the bank to complete the lender required repairs at their expense. If it really gets tough and you feel that you really want to back out of the deal because of the repairs, the bank may work with you instead of having to go out and find another buyer. This depends a lot on what the current market is doing in your area and how many other buyers the bank may or may not have.
Ready to make an offer?
When considering making an offer you will need to look closely at the comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to bring the home to your expectations. The bargains with money making potential exist, and many people do very well buying foreclosures, however there are also many R.E.O.’s that are not good buys.
As with making any offer on real estate, you’ll make your offer more attractive if you can include documentation of your ability to buy, such as a pre-approval letter from a lender, first page of your credit score and proof of funds for your down payment. You may experience a delay getting a final approval because, you’ll be dealing with a process that probably involves multiple people at the bank, and they don’t work evenings or weekends. It’s not unusual for the process of offers and counter offers to take several days.
I hope these tips have helped you understand the R.E.O. buying process. Remember that the late night infomercials are not as easy as they appear to be. We would be happy to help you prepare and make an offer on any bank owned property. We have the experience to make it happen.