| Where can you find a very good deal on real estate? | | | | property, the potential buyer may have to accept a |
| Well, regardless of whether you seek a home or an | | | | somewhat lengthy waiting period until the bank's |
| investment property, some of the best opportunities | | | | foreclosure and asset management department has |
| are in bank REO properties. This translates to "real | | | | had adequate time to get an accurate valuation on the |
| estate owned" by the bank that originally created a | | | | home or land. Only then will they begin to work with |
| first mortgage on it. For example, a home that had a | | | | the broker to accept bids on the item. |
| first mortgage made by a local bank that was then | | | | Will the bank accept a seriously low figure in order to |
| defaulted on and reclaimed through a foreclosure is | | | | eliminate such liabilities from their books? Interestingly |
| one of the many bank REO properties. | | | | enough, most banks are not viewing reclaimed homes |
| Are these always available for purchase? Most banks | | | | or businesses as liabilities at all. Instead, they view |
| are currently overwhelmed with foreclosures and the | | | | themselves as somewhat obligated to investors and |
| assumption of ownership on a large array of homes, | | | | shareholders to get the accurate market value on the |
| land, and businesses. This is due to the collapse of the | | | | properties. Of course, this doesn't mean that good |
| subprime mortgage industry and the declining status of | | | | deals are unavailable because real estate prices, |
| the economy. This means that someone might know | | | | overall, have adjusted to more realistic figures. For |
| of a property that was foreclosed on and reclaimed | | | | instance, the home that once sold for several hundred |
| by a bank, but it might not yet have made the listings | | | | thousand dollars may have been reduced to a far |
| of bank REO properties because the staff has not yet | | | | more realistic two hundred thousand by the bank that |
| assigned a sale price to it. | | | | owns it. |
| Is there anything that can be done to speed up the | | | | To understand what sort of offer should be made on |
| process? Most banks don't actively engage in working | | | | Bank REO Properties, the individual should work with |
| with potential buyers directly, and will instead hire | | | | their real estate agent and also conduct some |
| someone to handle all of their bank REO properties. | | | | research of their own. They should get an idea of |
| These can be known as REO brokers or companies, | | | | what homes in the neighborhood are selling for, and |
| but many local real estate agents are well-aware of | | | | they should be willing to pay for a thorough inspection |
| such listings too. This means that someone who wants | | | | of the property to determine if there are any issues |
| to acquire such a property is going to have to find out | | | | that should drive the price down a bit. Once this is |
| which brokers or agents a bank is working with to | | | | done the potential buyer will have submit an offer |
| stay up to date with the listings. | | | | through the broker and wait to see if the bank |
| If they want to make a specific inquiry about a | | | | accepts. |