Interested in REO property or a foreclosure in Oxnard?
Just as with any property purchase, your smartest move is to hire a professional real estate agent.
What is an REO?
"REO" or Real Estate Owned are homes which have gone through foreclosure that the bank or mortgage company now possesses. This is unlike real estate up for foreclosure auction.
If you buy 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. You must also be able to pay with cash in hand. And on top of all that, you'll receive the property entirely as is. That may involve existing liens and even current occupants that need to be removed.
A bank-owned property, on the contrary, is a more tidy and attractive transaction. The REO property was unable to find a buyer during foreclosure auction. The bank now owns it. The bank will deal with the elimination of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.
Take notice 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 usually requires sellers to tell you about any defects they are knowledgeable of.
By hiring Roberto V. Cardenas Real Estate Services, you can rest assured knowing all parties are fulfilling California state disclosure requirements.
Am I guaranteed a good deal when purchasing a bank owned property in Oxnard?
It's sometimes thought that any foreclosure must be a steal and an opportunity for guaranteed profit. This frequently isn't true. You have to be very careful about buying a repossession if your intent is profit from the sale. Even though the bank is often anxious to offload it fast, they are also motivated to minimize any losses.
Look closely at the listing and sales prices of comparable 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.
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 may not be money makers.
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. To get their properties advertised on the local MLS, the lender will often contract with a listing agent.
Prior to 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 taking offers. Since banks most commonly 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 terminate the offer if you find it.
As with making any offer on real estate, providing documentation proving your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.
Once you've presented your offer, it's customary for the bank to respond with a counter offer. At this point it will be your decision whether to accept their counter, or submit another counter offer.
Your transaction could be final in a single day, but that's usually not the case. 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. Roberto V. Cardenas Real Estate Services is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.
Roberto V. Cardenas Real Estate Services 200 South A. Street Suite 208 Oxnard, CA 93030-5727
Look closely at the listing and sales prices of comparable 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.
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 may not be money makers.
