Purchasing REO property or a foreclosure in Seattle?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional.

What's an REO?

"REO" stands for Real Estate Owned. These are houses which have been through foreclosure that the bank or mortgage company currently holds. This differs from a property up for foreclosure auction. Preferred Real Estate Services has experience to share with foreclosures and bank owned properties in Seattle, Washington

Preferred Real Estate Services has experience to share with foreclosures and bank owned properties in Seattle, Washington

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. The buyer must also be willing to pay with cash in hand. To top everything off, you'll receive the property completely as is. That possibly could comprise of prevailing liens and even current tenants that need to be evicted.

A bank-owned property, on the other hand, is a much neater and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The bank will attend to the elimination 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 normal disclosure requirements. For instance, in California, banks do not have to give a Transfer Disclosure Statement, a document that usually requires sellers to tell you about any defects of which they are knowledgeable. By hiring Preferred Real Estate Services, you can rest assured knowing all parties are fulfilling Washington state disclosure requirements.

Are REO properties a bargain in Seattle?

It is sometimes assumed that any foreclosure must be a good buy and a chance for easy money. This isn't always true. You have to be very careful about buying a repossession if your intent is make a profit. While it's true that the bank is often eager to offload it promptly, they are also looking to get as much as they can for it.

Preferred Real Estate Services has experience to share with foreclosures and bank owned properties in Seattle, Washington

When considering the value of a foreclosure, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. There are bargains with potential to make money, and many people do very well buying foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.

All set to make an offer?

Most lenders have a department 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.

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about what they know about the condition of the property and what their process is for taking offers. Since banks typically 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 retract the offer if you find it. If, as a buyer, you can provide documentation proving 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 holds for any real estate offer.)

After 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 offer a counter to the counter offer. Your deal could be final in a single day, but that's usually not the case. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.