Purchasing REO property or a foreclosure in Tempe?


	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 questions you have about real estate foreclosures.

What is an REO?

"REO" is short for Real Estate Owned. These are homes which have been foreclosed upon that the bank or mortgage company now possesses. This is different than a property up for foreclosure auction. John Hall & Associates has experience to share with foreclosures and bank owned properties in Tempe, Arizona

John Hall & Associates has experience to share with foreclosures and bank owned properties in Tempe, 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. You must also be able to pay with cash in hand. And on top of all that, you'll get the property entirely as is. That could include current liens and even current denizens that need to be put out.

A bank-owned property, on the contrary, is a more tidy and attractive deal. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The lender will attend to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from typical disclosure requirements. For example, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that usually requires sellers to tell you about any defects of which they are knowledgeable. By hiring John Hall & Associates, you can rest assured knowing all parties are fulfilling Arizona state disclosure requirements.

Am I guaranteed a good deal when investing in an REO property in Tempe?

It's commonly believed that any foreclosure must be a bargain and a chance for guaranteed profit. This isn't necessarily true. You have to be prudent about buying a repossession if your intent is make a profit. Even though the bank is often anxious to sell it soon, they are also motivated to get as much as they can for it.

John Hall & Associates has experience to share with foreclosures and bank owned properties in Tempe, Arizona

When contemplating what to pay for REO property, 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. There are bargains with potential to make money, and many people do very well buying and selling foreclosures. Still there are also many REOs that are not good buys and may lose money.

All set to make an offer?

Most lenders have a department dedicated to REO that you'll work with in buying REO property from them. Typically 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 discover as much as you can about what they know regarding the condition of the property and what their process is for accepting offers. Since banks typically 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 unseen damage and withdraw the offer if you find it. As with making any offer on real estate, providing documentation showing your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

After 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 submit another counter offer. Understand, you'll be working with a process that usually involves a group of people at the bank, and they don't work evenings or weekends. It's typical for there to be days or even weeks of going back and forth. John Hall & Associates is accustomed to these situations and will work to ensure there are no unnecessary delays.