Looking for REO property or a foreclosure in Dallas - Fort Worth?
Just as with any property purchase, your smartest move is to hire a professional real estate agent. If you have questions about real estate in Dallas - Fort Worth call us
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What is an REO?
"REO" or Real Estate Owned are houses which have been foreclosed upon and are now held by the bank or mortgage company. This differs from a property up for foreclosure auction.
If you buy 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. You must also be willing to pay with cash in hand. Finally, you'll accept the property completely as is. That possibly will include standing liens and even current tenants that need to be thrown out.
A bank-owned property, conversely, is a much neater and attractive deal. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The lender will see to 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.
Take notice that REOs may be exempt from normal disclosure requirements. For example, in California, banks do not have to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to make known any defects of which they are aware. By hiring Ryan Real Estate Group, you can rest assured knowing all parties are fulfilling Texas state disclosure requirements.
Am I assured a good deal when purchasing a bank owned property in Dallas - Fort Worth?
It is occasionally thought that any REO must be a good buy and a chance for guaranteed profit. This frequently isn't true. You have to be prudent about buying a REO if your intent is to make money. Even though the bank is typically eager to sell it fast, they are also looking to get as much as they can for it.
Look carefully at the listing and sales prices of similar properties 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 buying and selling foreclosures. But, there are also many REOs that are not good buys and may not be money makers.
Time to make an offer?
Most banks have a department dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will often contract with a listing agent. Ryan Real Estate Group is a listing agent for some bank foreclosures, so our agents have experience in working with the banks.
Prior to making your offer, we will want to contact either the listing agent or REO department at the bank and discover as much as you can about their knowledge regarding the condition of the property and what their process is for getting offers. Since banks typically sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for unknown damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any real estate offer.)
After you've presented your offer, it's customary for the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or make another counter offer. Your deal could be settled in one day, but that's rare. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Ryan Real Estate Group is used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.