Purchasing REO property or a foreclosure in Cambridge?


	Just as with any home purchase, your wisest move is to hire a professional real estate agent. If you have questions regarding real estate in Cambridge, Ohio, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are homes which have completed the foreclosure process and are currently possessed by the bank or mortgage company. This differs from a property up for foreclosure auction. RE/MAX Real Estate Partners has experience to share with foreclosures and bank owned properties in Cambridge, Ohio

RE/MAX Real Estate Partners has experience to share with foreclosures and bank owned properties in Cambridge, Ohio

When buying 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 willing to pay with cash in hand. To top everything off, you'll receive the property totally as is. That possibly will consist of prevailing liens and even current residents that may require expulsion.

A bank-owned property, on the contrary, is a much neater and attractive proposition. The REO property didn't find a buyer during foreclosure auction. Now the bank 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.

Take notice that REOs may be exempt from normal disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that ordinarily requires sellers to disclose any defects they are knowledgeable of. By hiring RE/MAX Real Estate Partners, you can rest assured knowing all parties are fulfilling Ohio state disclosure requirements.

Is REO property in Cambridge a bargain?

It is occasionally thought that any foreclosure must be a good deal and a chance for easy money. This simply isn't true. You have to be cautious about buying a REO if your intent is profit from the sale. Even though the bank is usually eager to offload it promptly, they are also motivated to minimize any losses.

RE/MAX Real Estate Partners has experience to share with foreclosures and bank owned properties in Cambridge, Ohio

When considering what to pay for 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. The bargains with money making potential exist, and many people do very well buying foreclosures. But there are also many REOs that are not good buys and may not be money makers.

Prepared to make an offer?

Most banks 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 typically use 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 about the condition of the property and what their process is for taking offers. Since banks usually 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 withdraw the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, 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 up to you to decide whether to accept their counter, or offer a counter to the counter offer. Understand, you'll be working with a process that usually involves several 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. RE/MAX Real Estate Partners is accustomed to these situations and will work to ensure there are no unnecessary delays.