Interested in REO property or a foreclosure in Gilbert?


	Savvy consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. For more information, simply 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 homes which have been foreclosed upon that the bank or mortgage company currently holds. This is not the same as real estate up for foreclosure auction. Realty Executives TEAM III has experience to share with foreclosures and bank owned properties in Gilbert, Arizona

Realty Executives TEAM III has experience to share with foreclosures and bank owned properties in Gilbert, Arizona

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. Finally, you'll get the property 100% as is. That could involve standing liens and even current tenants that may require removal.

A bank-owned property, on the contrary, is a much cleaner and attractive proposition. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will take care of the elimination of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.

Take notice 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 typically requires sellers to reveal any defects they are knowledgeable of. By hiring Realty Executives TEAM III, you can rest assured knowing all parties are fulfilling Arizona state disclosure requirements.

Is REO property in Gilbert a bargain?

It is sometimes believed that any REO must be a good deal and a possibility for easy money. This isn't always true. You have to be cautious about buying a REO if your intent is make money. While it's true that the bank is usually eager to sell it quickly, they are also motivated to minimize any losses.

Realty Executives TEAM III has experience to share with foreclosures and bank owned properties in Gilbert, Arizona

Look carefully at the listing and sales prices of competing homes in the neighborhood when considering the purchase of 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 buying and selling foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.

Prepared 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 typically contract with a listing agent.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and find out as much as you can about their knowledge regarding the condition of the property and what their process is for receiving offers. Since banks almost always sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. As with making any offer on real estate, your offer may be 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, you can expect the bank to counter offer. Then it will be up to you to decide whether to accept their counter, or submit another counter offer. Your deal could be final in one day, but that's rare. 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.