Contact me for a FREE list of the latest foreclosed/REO or HUD properties!

One of my specialites is dealing with the foreclosure market, HUD homes and Short Sales.  If you would like a FREE list of foreclosed/REO properties or investments in your specific area, please fill out the form below.  Please let me know any details you are looking for price, location, etc. 

As an investor and Realtor I understand the in's and out's of buying foreclosed properties, dealing with banks/sellers, rehabbing, rentals, and finding that great deal that you might only see once in a life time!  This is THE BEST TIME to buy real estate so don't miss out!

Information on REO Properties

The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.

A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them.

How Banks Sell REO's and what you as an investor need to know

Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory.

Included with your offer you will need an earnest money check typically written out to the listing broker for $1000, it varies depending on the bank.  You will also need your proof of funds letter if you are paying cash or a pre-approval letter from your bank if you are getting a loan.  Please note: on many REO properties you cannot get a loan, therefore you must pay cash or find a 203K renovation loan if you plan to reside in the property.  FYI, Banks like cash and a quick close!

Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible.

Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies.  After your offer is accepted verbally or by email the bank's listing agent will then send over the bank's addendum or contract to your agent.  These addendums will supersede your original contract.  You will need to get them signed right away and returned to the seller, usually within 24 hours.  During this time the property is still marketable and the bank can accept other offers.  This is why it's imperative you get the bank addendums over to the seller right away.

You then will have a specific amount of time to have an inspection on the property if you wish too.  Please note:  REO's are SOLD AS IS and the seller will make NO repairs.  You as the buyer cannot make repairs prior to close.  If you find something during your inspection that you were not aware you can always go back to the seller to renegotiate the price, but it doesn't always work.  The seller will also give you little or no information on the property, therefore it is up to you as the buyer to make a sound decision on whether or not to buy.  I would also advise you to review the property on your county website as well.  Sometimes, not all info from the seller will be correct.

Closing sometimes can be delayed due to the amount of paperwork that needs to be completed by many parties in the REO process.  Please have patients in this event.

I hope this information has been helpful.  Please contact me with any questions.