Buying REO property or a foreclosure in Valencia?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. For more information, you can contact me through my site or e-mail me. I'm happy to answer questions you have about real estate foreclosures.

What is an REO?

"REO" or Real Estate Owned are properties which have completed the foreclosure process that the bank or mortgage company currently holds. This is different than real estate up for foreclosure auction. Legacy Real Estate Group has experience to share with foreclosures and bank owned properties in Valencia, California

Legacy Real Estate Group has experience to share with foreclosures and bank owned properties in Valencia, California

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. You must also be prepared to pay with cash in hand. And on top of all that, you'll get the property entirely as is. That possibly will comprise of standing liens and even current occupants that need to be kicked out.

A bank-owned property, conversely, is a much cleaner and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will attend to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from normal disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to reveal any defects of which they are informed. By hiring Legacy Real Estate Group, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Is REO property in Valencia a bargain?

It is sometimes thought that any foreclosure must be a bargain and an opportunity for guaranteed profit. This frequently isn't true. You have to be prudent about buying a REO if your intent is make money. Even though the bank is usually eager to offload it soon, they are also looking to minimize any losses.

Legacy Real Estate Group has experience to share with foreclosures and bank owned properties in Valencia, California

Look carefully at the listing and sales prices of comparable homes in the neighborhood when considering the purchase of 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 flipping foreclosures. However there are also many REOs that are not good buys and may not be money makers.

All set to make an offer?

Most lenders have a department 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 their knowledge regarding the condition of the property and what their process is for receiving offers. Since banks usually sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unseen damage and cancel the offer if you find it. If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any type of real estate offer.)

Once you've presented your offer, you can expect the bank to counter offer. Then it will be your choice whether to accept their counter, or offer a counter to the counter offer. Be aware, you'll be dealing with a process that usually involves multiple people at the bank, and they don't work evenings or weekends. It's not uncommon for there to be days or even weeks of going back and forth. Legacy Real Estate Group is accustomed to these situations and will work to ensure there are no undue delays.