Looking for REO property or a foreclosure in Seattle?
Foreclosed upon and bank owned property purchases require the assistance of an experience professional.
For more information, just contact me through my site or e-mail me. I'm happy to address any questions you have regarding real estate foreclosures.
What is an REO?
"REO" stands for Real Estate Owned. These are properties which have completed the foreclosure process that the bank or mortgage company presently possesses. 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 amassed during the foreclosure process. You must also be prepared to pay with cash in hand. Finally, you'll accept the property totally as is. That could include standing liens and even current tenants that need to be thrown out.
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 take care of 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.
Note that REOs may be exempt from typical disclosure requirements.
For instance, in California, banks do not have to give a Transfer Disclosure Statement,
a document that typically requires sellers to disclose any defects of which they are aware.
By hiring Horizon Real Estate, you can rest assured knowing all parties are fulfilling Washington state disclosure requirements.
Is REO property in Seattle a bargain?
It's frequently presumed that any foreclosure must be a steal and a chance for guaranteed profit. This often isn't true. You have to be cautious about buying a repossession if your intent is make a profit. While it's true that the bank is often anxious to sell it promptly, they are also motivated to get as much as they can for it.
Look carefully at the listing and sales prices of competing homes in the neighborhood when making an offer on an REO. And factor in any repairs or remodeling 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 foreclosures. Still there are also many REOs that are not good buys and may not be money makers.
Time to make an offer?
Most mortgage companies have staff dedicated to REO that you'll work with in buying REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.
Prior to 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 about the condition of the property and what their process is for receiving 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 hidden damage and cancel 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 type of real estate offer.)
Once you've made your offer, you can expect the bank to counter offer. From there it will be your choice whether to accept their counter, or submit another counter offer.
Your deal might be settled in a single 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. Horizon Real Estate is accustomed to these situations and will work to ensure there are no undue delays.
Today's Rates:
Mtg Loan
Rate
APR
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3.87%
4%
15-yr Fixed
3.14%
3.31%
1-yr Adj
2.76%
3.42%
* national averages
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We lend in the following states: WA, OR, ID, NV, CA and have Affiliates in all 50 States. West Horizon Financial Inc. 510-MB-24616
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Real Estate Broker: Angela Hiroshima
Horizon Real Estate 7900 E. Green Lake Dr. N Ste 212, Suite 201
Look carefully at the listing and sales prices of competing homes in the neighborhood when making an offer on an REO. And factor in any repairs or remodeling 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 foreclosures. Still there are also many REOs that are not good buys and may not be money makers.
