Looking for REO property or a foreclosure in Plano?
Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
If you have questions about real estate in Plano, Texas, call me or send me an e-mail.
What is an REO?
"REO" is an abbreviation for Real Estate Owned. These are homes which have completed the foreclosure process and are currently owned by the bank or mortgage company. This differs from real estate up for foreclosure auction.
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. You must also be willing to pay with cash in hand. And on top of all that, you'll receive the property completely as is. That could comprise of standing liens and even current tenants that need to be removed.
A bank-owned property, conversely, is a more tidy and attractive deal. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will handle 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 normal disclosure requirements.
For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement,
a document that typically requires sellers to reveal any defects of which they are informed.
By hiring RE/MAX Dallas Suburbs - Ryan Real Estate Group, you can rest assured knowing all parties are fulfilling Texas state disclosure requirements.
Is REO property in Plano a bargain?
It's frequently presumed that any REO must be a good buy and an opportunity for easy money. This isn't always true. You have to be cautious about buying a repossession if your intent is make money. Even though the bank is often eager to sell it promptly, they are also motivated to minimize any losses.
Look closely at the listing and sales prices of comparable 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.
There are bargains with potential to make money, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and may lose money.
Ready to make an offer?
Most banks have a department dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the local MLS, the lender will usually use 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 what they know regarding the condition of the property and what their process is for getting offers. Since banks most commonly 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.
If, as a buyer, you can provide documentation demonstrating your ability to secure financing, 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.)
Once you've made your offer, you can expect the bank to counter offer. From there it will be your decision whether to accept their counter, or submit another counter offer.
Be aware, you'll be contending with a process that generally involves several people at the bank, and they don't work evenings or weekends. It's not uncommon for the process of offers and counter offers to take days or even weeks. RE/MAX Dallas Suburbs - Ryan Real Estate Group is accustomed to these situations and will work to ensure there are no unnecessary delays.
* MOL = More or Less
RE/MAX Dallas Suburbs - Ryan Real Estate Group 4032 McDermott Suite 100 Plano, TX 75024
Look closely at the listing and sales prices of comparable 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.
There are bargains with potential to make money, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and may lose money.
