Making an offer on REO property or a foreclosure in Strongsville?


	Just as with any home purchase, your wisest move is to hire a professional real estate agent. Should you have questions about real estate in Strongsville, Ohio, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are properties which have completed the foreclosure process and are currently owned by the bank or mortgage company. This is unlike real estate up for foreclosure auction. Coldwell Banker Hunter Realty has experience to share with foreclosures and bank owned properties in Strongsville, Ohio

Coldwell Banker Hunter Realty has experience to share with foreclosures and bank owned properties in Strongsville, Ohio

If you buy 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 accept the property 100% as is. That could consist of current liens and even current tenants that need to be removed.

A bank-owned property, on the contrary, is a more tidy and attractive option. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The lender will handle the removal of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from standard disclosure requirements. For example, in California, banks do not have to give a Transfer Disclosure Statement, a document that typically requires sellers to tell you about any defects of which they are informed. By hiring Coldwell Banker Hunter Realty, you can rest assured knowing all parties are fulfilling Ohio state disclosure requirements.

Am I assured a low price when buying an REO property in Strongsville?

It's commonly thought that any REO must be a good buy and an opportunity for guaranteed profit. This simply isn't true. You have to be prudent about buying a REO if your intent is make a profit. While it's true that the bank is typically eager to sell it quickly, they are also looking to minimize any losses.

Coldwell Banker Hunter Realty has experience to share with foreclosures and bank owned properties in Strongsville, Ohio

When considering the value of REO property, you need to 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. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and may lose money.

Prepared to make an offer?

Most banks have staff dedicated to REO that you'll work with while buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about their knowledge about the condition of the property and what their process is for getting offers. Since banks typically 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 retract the offer if you find it. If, as a buyer, you can provide documentation demonstrating your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any real estate offer.)

After you've submitted your offer, you can expect the bank to respond with a counter offer. From there it will be your decision whether to accept their counter, or offer a counter to the counter offer. Be aware, you'll be working with a process that generally 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.