Buying REO property or a foreclosure in Palm Springs?


	Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. For more information, simply contact me through my site or e-mail me. I'm glad to answer questions you have regarding real estate foreclosures.

What is an REO?

"REO" or Real Estate Owned are homes which have been foreclosed upon and are now owned by the bank or mortgage company. This differs from a property up for foreclosure auction. EB Investments has experience to share with foreclosures and bank owned properties in Palm Springs, California

EB Investments has experience to share with foreclosures and bank owned properties in Palm Springs, California

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. The buyer must also be ready to pay with cash in hand. To top everything off, you'll accept the property completely as is. That could involve current liens and even current residents that may require removal.

A bank-owned property, on the other hand, is a much neater and attractive deal. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The lender 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.

You should be aware that REOs may be exempt from typical disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that normally requires sellers to reveal any defects they are informed of. By hiring EB Investments, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Are REO properties a bargain in Riverside County?

It is sometimes believed that any foreclosure must be a good buy and an opportunity for easy money. This frequently isn't true. You have to be prudent about buying a repossession if your intent is make a profit. While it's true that the bank is often eager to offload it fast, they are also motivated to get as much as they can for it.

EB Investments has experience to share with foreclosures and bank owned properties in Palm Springs, California

When considering the value of REO property, carefully analyze 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. There are bargains with potential to make money, and many people do very well flipping foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.

All set to make an offer?

Most mortgage companies have staff dedicated to REO that you'll work with while buying REO property from them. Commonly 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 learn as much as you can about what they know concerning the condition of the property and what their process is for getting offers. Since banks typically sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unknown damage and withdraw 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 holds for any real estate offer.)

Once you've presented your offer, it's customary for the bank to respond with a counter offer. From there it will be up to you to decide whether to accept their counter, or submit another counter offer. Understand, you'll be dealing with a process that generally involves a group of people at the bank, and they don't work evenings or weekends. It's not unusual for there to be days or even weeks of negotiating back and forth. EB Investments is accustomed to these situations and will work to ensure there are no undue delays.