Purchasing REO property or a foreclosure in Cincinnati?


	Investing in a bank-owned property is not something to be taken casually. For more information, simply contact me through my site or e-mail me. I'm glad to address any questions you have about real estate foreclosures.

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are houses which have been foreclosed upon that the bank or mortgage company presently owns. This is not the same as real estate up for foreclosure auction. Group Realtors has experience to share with foreclosures and bank owned properties in Cincinnati, Ohio

Group Realtors has experience to share with foreclosures and bank owned properties in Cincinnati, Ohio

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 prepared to pay with cash in hand. Finally, you'll accept the property totally as is. That possibly may include existing liens and even current tenants that need to be thrown out.

A bank-owned property, on the contrary, is a much neater and attractive option. The REO property was unable to find a buyer during foreclosure auction. The bank now owns it. The bank will handle 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.

Note that REOs may be exempt from normal disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to reveal any defects they are informed of. By hiring Group Realtors, you can rest assured knowing all parties are fulfilling Ohio state disclosure requirements.

Am I assured a good deal when buying an REO property in Cincinnati?

It is sometimes thought that any foreclosure must be a bargain and a chance for easy money. This often isn't true. You have to be very careful about buying a REO if your intent is make a profit. While it's true that the bank is often eager to sell it soon, they are also motivated to get as much as they can for it.

Group Realtors has experience to share with foreclosures and bank owned properties in Cincinnati, Ohio

Look carefully at the listing and sales prices of comparable homes 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. There are bargains with potential to make money, and many people do very well buying foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

Prepared to make an offer?

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

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 regarding the condition of the property and what their process is for receiving offers. Since banks typically sell REO properties "as is", you may want 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. 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 presented your offer, you can expect the bank to make a counter offer. Then it will be your choice whether to accept their counter, or submit another counter offer. Realize, you'll be dealing with a process that most likely involves multiple people at the bank, and they don't work evenings or weekends. It's typical for the process of offers and counter offers to take days or even weeks.