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| If you need more information or would like additional REO help, please fill out the form below & we'll gladly get in touch with you. |
Buying Bank-Owned Properties.
With so much recent interest on bank-owned properties (REOs), the team at CENTURY 21
Adams & Barnes thought we take a moment to give some background and education on
the opportunities and points-to-ponder with this growing sector in real estate.
What’s an REO?
REO stands for “Real Estate Owned”. These are properties that have gone through
foreclosure and are now owned by the bank or mortgage company. This is not the same
as a property up for foreclosure auction. When buying a property during a foreclosure
sale, you must pay at least the loan balance plus any interest and other fees accumulated
during the foreclosure process. You must also be prepared to pay with cash in hand. And
on top of all that, you’ll receive the property 100% “as is”. That could include existing liens
and even current occupants that need to be evicted. A REO, by contrast, 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 see 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. Do be aware that REO’s may be exempt from normal disclosure
requirements. In California, for example, banks are exempt from giving a Transfer
Disclosure Statement, a document that normally requires sellers to tell you about any
defects they are aware of.
Is It A Bargain?
It’s commonly assumed that any REO must be a bargain and an opportunity to buy a
home "cheaply" or to make some "easy money". This simply isn't’t true. You have to be
very careful about buying an REO and ensure that you have a qualified and well-trained
REALTOR who can guide your through the process. While it’s true that the bank is
typically anxious to sell it quickly, they are also strongly motivated to get as much as they
can for it. When considering the value of a REO, your REALTOR and you must 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. The opportunity
to purchase a great home at a great price is out there. Our REALTORS are trained to see
these opportunities and guide you through all the appropriate steps.
Ready To Make An Offer?
Most banks have a REO department that your REALTOR and you will work with in buying a
REO property from them. Typically the REO department will use a listing agent to get their
REO properties listed on the local MLS. Before making the offer, your CENTURY 21
Adams & Barnes REALTOR will want to contact either the listing agent or REO
department at the bank and find out as much as you can about what they know about the
condition of the property and what their process is for receiving offers. Since banks
almost always sell REO properties “as is”, you’ll want to be sure and include an
inspection contingency in your offer that gives you time to check for hidden damage and
terminate the offer if you find it. As with making any offer on real estate, you’ll make your
offer more attractive if you can include documentation of your ability to pay, such as a pre-
approval letter from a lender. After you’ve made your offer, you can expect the bank to
make a counter offer. Then it will be up to you to decide whether to accept their counter, or
offer a counter to the counter offer. Realize, you’ll be dealing with a process that probably
involves multiple people at the bank, and they don’t work evenings or weekends. It’s not
unusual for the process of offers and counter offers to take days or even weeks. Therefore,
our REALTORS are training to communicate with you every step of the way so that you
know what's happening, when its happening.
With so much recent interest on bank-owned properties (REOs), the team at CENTURY 21
Adams & Barnes thought we take a moment to give some background and education on
the opportunities and points-to-ponder with this growing sector in real estate.
What’s an REO?
REO stands for “Real Estate Owned”. These are properties that have gone through
foreclosure and are now owned by the bank or mortgage company. This is not the same
as a property up for foreclosure auction. When buying a property during a foreclosure
sale, you must pay at least the loan balance plus any interest and other fees accumulated
during the foreclosure process. You must also be prepared to pay with cash in hand. And
on top of all that, you’ll receive the property 100% “as is”. That could include existing liens
and even current occupants that need to be evicted. A REO, by contrast, 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 see 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. Do be aware that REO’s may be exempt from normal disclosure
requirements. In California, for example, banks are exempt from giving a Transfer
Disclosure Statement, a document that normally requires sellers to tell you about any
defects they are aware of.
Is It A Bargain?
It’s commonly assumed that any REO must be a bargain and an opportunity to buy a
home "cheaply" or to make some "easy money". This simply isn't’t true. You have to be
very careful about buying an REO and ensure that you have a qualified and well-trained
REALTOR who can guide your through the process. While it’s true that the bank is
typically anxious to sell it quickly, they are also strongly motivated to get as much as they
can for it. When considering the value of a REO, your REALTOR and you must 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. The opportunity
to purchase a great home at a great price is out there. Our REALTORS are trained to see
these opportunities and guide you through all the appropriate steps.
Ready To Make An Offer?
Most banks have a REO department that your REALTOR and you will work with in buying a
REO property from them. Typically the REO department will use a listing agent to get their
REO properties listed on the local MLS. Before making the offer, your CENTURY 21
Adams & Barnes REALTOR will want to contact either the listing agent or REO
department at the bank and find out as much as you can about what they know about the
condition of the property and what their process is for receiving offers. Since banks
almost always sell REO properties “as is”, you’ll want to be sure and include an
inspection contingency in your offer that gives you time to check for hidden damage and
terminate the offer if you find it. As with making any offer on real estate, you’ll make your
offer more attractive if you can include documentation of your ability to pay, such as a pre-
approval letter from a lender. After you’ve made your offer, you can expect the bank to
make a counter offer. Then it will be up to you to decide whether to accept their counter, or
offer a counter to the counter offer. Realize, you’ll be dealing with a process that probably
involves multiple people at the bank, and they don’t work evenings or weekends. It’s not
unusual for the process of offers and counter offers to take days or even weeks. Therefore,
our REALTORS are training to communicate with you every step of the way so that you
know what's happening, when its happening.
| FEATURED REO HOME 762 Norumbega Drive, Monrovia, CA 91016 |
BANK OWNED! This incredible home has a lot to offer with a
great location, views of the mountains and privacy. The front entry
leads to a spacious living room with a fireplace. There is a large
family room with cathedral ceilings and a fireplace just off the
beautiful kitchen with granite counters and stainless steel
appliances. French doors lead to a lovely patio area and an
inviting pool for entertaining. Master bedroom is situated in back
of the house with French doors which also lead to the private
yard. There is a circulardriveway along with an electric gate which
opens to access to the 2 car detachedgarage and back yard. This
property will not last a this price!
great location, views of the mountains and privacy. The front entry
leads to a spacious living room with a fireplace. There is a large
family room with cathedral ceilings and a fireplace just off the
beautiful kitchen with granite counters and stainless steel
appliances. French doors lead to a lovely patio area and an
inviting pool for entertaining. Master bedroom is situated in back
of the house with French doors which also lead to the private
yard. There is a circulardriveway along with an electric gate which
opens to access to the 2 car detachedgarage and back yard. This
property will not last a this price!
| CONTACT US TODAY FOR MORE INFORMATION 626.358.1858 / Monrovia 626.963.7621 / Glendora |
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Realogy Company. Each Century 21 Office Is Independently Owned And Operated. All rights reserved. Information appearing on this site has been produced by or obtained primarily from Century 21 Real Estate LLC and its representatives and from Century 21 franchisees. Century 21 Real Estate LLC is
not responsible for the accuracy or completeness of the broker information, sales associate information, listing information or other information provided by our franchises appearing on or through this site. Such information has been provided by independent third parties who are solely responsible for such
content. Certain conditions and restrictions apply to System promotions. Monrovia, Monrovia Real Estate, Glendora, Glendora Real Estate, CENTURY 21 Commercial, Tom Adams, Joe Garcia, Karen Taylor-Straley, Monrovia City Council, Hugo Torres, Rich Faeh, Arcadia Association of Realtors,
AAR, Citrus Valley Association of Realtors, Duarte, Duarte Real Estate, Arcadia, Arcadia Real Estate, San Marino, Sal Marino Real Estate, LeadRouter, CGRN, Donna Baker, Dixon Podley
Realogy Company. Each Century 21 Office Is Independently Owned And Operated. All rights reserved. Information appearing on this site has been produced by or obtained primarily from Century 21 Real Estate LLC and its representatives and from Century 21 franchisees. Century 21 Real Estate LLC is
not responsible for the accuracy or completeness of the broker information, sales associate information, listing information or other information provided by our franchises appearing on or through this site. Such information has been provided by independent third parties who are solely responsible for such
content. Certain conditions and restrictions apply to System promotions. Monrovia, Monrovia Real Estate, Glendora, Glendora Real Estate, CENTURY 21 Commercial, Tom Adams, Joe Garcia, Karen Taylor-Straley, Monrovia City Council, Hugo Torres, Rich Faeh, Arcadia Association of Realtors,
AAR, Citrus Valley Association of Realtors, Duarte, Duarte Real Estate, Arcadia, Arcadia Real Estate, San Marino, Sal Marino Real Estate, LeadRouter, CGRN, Donna Baker, Dixon Podley