| REO Properties For Sale | | | | Each bank/lender works a little differently, but they all |
| The bank now owns the property and the mortgage | | | | have similar goals. They want to get the best price |
| loan no longer exists. The bank will handle the eviction, | | | | possible and have no interest in "dumping" real estate |
| if necessary, and may do some repairs. They will | | | | cheaply. Generally, banks have an entire department |
| negotiate with the IRS for removal of tax liens and | | | | set up to manage their REO inventory. |
| pay off any homeowner's association dues. As a | | | | Once you make an offer to purchase, banks generally |
| purchaser of an REO property, the buyer will receive | | | | present a "counter-offer." It may be at a higher price |
| a title insurance policy and the opportunity to | | | | than you expect, but they have to demonstrate to |
| investigate the property. | | | | investors, shareholders and auditors that they |
| A bank owned property can be a great bargain. Do | | | | attempted to get the highest price possible. You should |
| your homework before making an offer. Make sure | | | | plan to counter the counter-offer if you offer was not |
| that the price you pay (if you're successful) is | | | | accepted. |
| comparable to other homes in the neighborhood. | | | | Your offer or counter-offer will probably have to be |
| Consider the costs of renovation, including time to | | | | reviewed and approved by several individuals and |
| complete them. Don't get caught up in a 'bidding war' | | | | companies. Even once an offer is accepted, the bank |
| and pay over market value. It's an old myth that | | | | may insert wording like "..Subject to corporate approval |
| "foreclosures" are a bargain. | | | | with 5 days. |
| How Banks Sell Reo's | | | | |