Making an offer on REO property or a foreclosure in Long Beach?


	Purchasing a bank-owned property is not something to be taken lightly. For more information, just contact me through my site or e-mail me. I'm happy to address questions you have about real estate foreclosures.

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are properties 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. Amer Real Estate & Investment Co has experience to share with foreclosures and bank owned properties in Long Beach, California

Amer Real Estate & Investment Co has experience to share with foreclosures and bank owned properties in Long Beach, California

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. You must also be ready to pay with cash in hand. To top everything off, you'll get the property completely as is. That could include existing liens and even current residents that need to be thrown out.

A bank-owned property, on the other hand, is a much neater and attractive proposition. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will take care of the removal 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 typical disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to make known any defects of which they are informed. By hiring Amer Real Estate & Investment Co, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Is REO property in Long Beach a bargain?

It is occasionally believed that any REO must be a good deal and an opportunity for easy money. This often isn't true. You have to be cautious about buying a repossession if your intent is to make money off of it. Even though the bank is usually eager to sell it fast, they are also motivated to minimize any losses.

Amer Real Estate & Investment Co has experience to share with foreclosures and bank owned properties in Long Beach, California

When considering what to pay for a foreclosure, 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. It is possible to find REOs with money-making potential, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and may lose money.

Prepared to make an offer?

Most lenders have staff dedicated to REO that you'll work with while 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 about the condition of the property and what their process is for getting offers. Since banks typically 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, providing documentation showing your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.

After you've submitted 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 submit another counter offer. Your transaction might be settled in one 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. Amer Real Estate & Investment Co is accustomed to these situations and will work to ensure there are no unnecessary delays.