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


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. Should you have any questions regarding real estate in Stillwater, Oklahoma, call me or send me an e-mail.

What is an REO?

"REO" stands for Real Estate Owned. These are homes which have gone through foreclosure that the bank or mortgage company presently possesses. This is unlike real estate up for foreclosure auction. CStar Real Estate has experience to share with foreclosures and bank owned properties in Stillwater, Oklahoma

CStar Real Estate has experience to share with foreclosures and bank owned properties in Stillwater, Oklahoma

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. The buyer must also be willing to pay with cash in hand. To top everything off, you'll receive the property completely as is. That possibly could comprise of existing liens and even current denizens that may require eviction.

A bank-owned property, by contrast, is a much neater and attractive transaction. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The lender will take care of 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 standard disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to disclose any defects they are aware of. By hiring CStar Real Estate, you can rest assured knowing all parties are fulfilling Oklahoma state disclosure requirements.

Are REO properties a bargain in Payne County?

It is frequently believed that any REO must be a good buy and a possibility for guaranteed profit. This isn't necessarily true. You have to be very careful about buying a REO if your intent is profit from the sale. While it's true that the bank is typically eager to offload it soon, they are also motivated to get as much as they can for it.

CStar Real Estate has experience to share with foreclosures and bank owned properties in Stillwater, Oklahoma

Look carefully at the listing and sales prices of similar properties in the neighborhood when making an offer on 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 buying and selling foreclosures. But there are also many REOs that are not good buys and may lose money.

Ready to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will typically hire a listing agent.

Prior to 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 regarding the condition of the property and what their process is for taking offers. Since banks most commonly sell REO properties "as is", it may be in your best interest to 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 type of real estate offer.)

Once you've presented your offer, you can expect the bank to make a counter offer. From there it will be your decision whether to accept their counter, or offer a counter to the counter offer. Your transaction might be final in a single day, but that's rare. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. CStar Real Estate is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.