Looking for REO property or a foreclosure in Bayside?


	Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property.

What is an REO?

"REO" or Real Estate Owned are properties which have completed the foreclosure process and are presently owned by the bank or mortgage company. This differs from real estate up for foreclosure auction. REMAX UNIVERSAL REAL ESTATE has experience to share with foreclosures and bank owned properties in Bayside, New York

REMAX UNIVERSAL REAL ESTATE has experience to share with foreclosures and bank owned properties in Bayside, New York

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. The buyer must also be ready to pay with cash in hand. To top everything off, you'll get the property totally as is. That might consist of existing liens and even current occupants that need to be removed.

A bank-owned property, on the other hand, is a more tidy and attractive transaction. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The lender will attend to the elimination of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.

Do be aware that REOs may be exempt from typical disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that normally requires sellers to disclose any defects they are knowledgeable of. By hiring REMAX UNIVERSAL REAL ESTATE, you can rest assured knowing all parties are fulfilling New York state disclosure requirements.

Am I guaranteed a good deal when investing in a bank owned property in Bayside?

It's sometimes believed that any REO must be a good buy and an opportunity for guaranteed profit. This isn't necessarily true. You have to be prudent about buying a repossession if your intent is make money. While it's true that the bank is often anxious to sell it promptly, they are also looking to minimize any losses.

REMAX UNIVERSAL REAL ESTATE has experience to share with foreclosures and bank owned properties in Bayside, New York

Look carefully at the listing and sales prices of competing properties 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 buying and selling foreclosures. Still there are also many REOs that are not good buys and may lose money.

All set to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with in 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 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 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 secure financing, 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.)

Once you've presented your offer, it's customary for the bank to counter offer. From there it will be up to you to decide whether to accept their counter, or make another counter offer. Your deal could be settled in a single day, but that's rare. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.