Making an offer on REO property or a foreclosure in Ocean Grove?


	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 address questions you have about real estate foreclosures.

What is an REO?

"REO" means Real Estate Owned. These are homes which have completed the foreclosure process and are currently held by the bank or mortgage company. This is unlike a property up for foreclosure auction. Diane Turton, Realtors has experience to share with foreclosures and bank owned properties in Ocean Grove, New Jersey

Diane Turton, Realtors has experience to share with foreclosures and bank owned properties in Ocean Grove, New Jersey

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. The buyer must also be able to pay with cash in hand. To top everything off, you'll receive the property 100% as is. That possibly will include current liens and even current tenants that need to be removed.

A bank-owned property, on the other hand, is a much cleaner and attractive deal. The REO property did not find a buyer during foreclosure auction. Now the bank owns it. The bank will deal with 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.

Note that REOs may be exempt from normal disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to reveal any defects they are aware of. By hiring Diane Turton, Realtors, you can rest assured knowing all parties are fulfilling New Jersey state disclosure requirements.

Is REO property in Ocean Grove a bargain?

It's sometimes thought that any foreclosure must be a bargain and an opportunity for guaranteed profit. This isn't necessarily the case. You have to be prudent about buying a REO if your intent is profit from the sale. Even though the bank is typically eager to offload it soon, they are also motivated to minimize any losses.

Diane Turton, Realtors has experience to share with foreclosures and bank owned properties in Ocean Grove, New Jersey

Look carefully at the listing and sales prices of similar homes 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 may not be money makers.

Prepared to make an offer?

Most banks have staff dedicated to REO that you'll work with while buying REO property from them. Commonly 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 find out as much as you can about their knowledge about the condition of the property and what their process is for accepting offers. Since banks most commonly 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 withdraw the offer if you find it. If, as a buyer, you can provide documentation showing your ability to pay, 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 real estate offer.)

After you've submitted 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. Realize, you'll be working 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 days or even weeks.