| Everyone knows that bank foreclosures on homes | | | | rental agreement with the previous owners in order to |
| and businesses are now at record and unprecedented | | | | allow them to remain in the property until it has sold, the |
| levels. Many assume that this means the market is full | | | | process of eviction is entirely unnecessary and allows |
| of bargain-basement prices that can allow someone to | | | | the new owner to schedule their move-in date |
| get an incredibly valuable property for very little money. | | | | accordingly. This means that they do not have to enter |
| Unfortunately, that is not a very realistic perception of | | | | into any legal wrangling to remove the current |
| the situation. If you take a look at most REO listings it is | | | | inhabitants, which can often become a serious issue |
| simple to see that banks are still viewing the homes | | | | when a home is purchased while in foreclosure. |
| and properties that they have taken in the foreclosure | | | | On the proverbial "flip side", however, all potential |
| process as assets to be sold for market-value. | | | | buyers who are working with a broker and looking only |
| This, however, does not mean that there are not | | | | at REO listings will have to understand that the broker |
| some great buys to be found, but it does indicate that | | | | is an agent of the bank. This means that they have no |
| a savvy shopper will do some research and discover | | | | legal obligations to disclose problems or issues with the |
| where the best prices exist. | | | | properties in question. Additionally, any contractors who |
| It all begins with finding a qualified realtor or broker who | | | | have done repairs are also not required to mention |
| works regularly with REO listings. The REO process is | | | | any damages or issues that they may have |
| different from the traditional buying experience | | | | discovered during their work as well. |
| because these properties can offer some unique | | | | This means that anyone who is seriously considering a |
| advantages. For one thing, they are no longer | | | | few different REO listings should develop a working |
| foreclosure properties because they have already | | | | relationship with a licensed inspector as well as a good |
| been reclaimed entirely by the bank or mortgage | | | | legal professional. It is also wise to even make a point |
| company. This means that all liens and encumbrances | | | | of talking to owners of neighboring properties to |
| have been cleared from the title. | | | | ensure that there are no catastrophic issues with the |
| It also means that the bank which holds the property | | | | home in question. For example, there may have been |
| may be more than willing to extend better terms to a | | | | a water pipe that burst during the winter, but a |
| qualified buyer - such as a very low down payment or | | | | contractor may have been able to conceal all |
| an excellent interest rate on the loan - in order to | | | | evidence of it. This could mean that mold, rotted floors, |
| transition the property back into active income | | | | and decaying sheet rock are present in the home, and |
| generation. | | | | it is the responsibility of the buyer to determine this |
| Lastly, even when a bank has created a short-term | | | | before closing the deal. |