Looking for REO property or a foreclosure in Valencia?
Savvy consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. If you have any questions regarding real estate in Valencia, California, 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 that the bank or mortgage company currently owns. This is different than 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 added during the foreclosure process. You must also be willing to pay with cash in hand. To top everything off, you'll receive the property entirely as is. That possibly may comprise of standing liens and even current denizens that need to be kicked out.
A bank-owned property, on the other hand, is a much cleaner and attractive transaction. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The bank will deal with 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.
Note that REOs may be exempt from normal disclosure requirements. For instance, in California, banks do not have to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to make known any defects of which they are aware. By hiring Short Modify, Inc., you can rest assured knowing all parties are fulfilling California state disclosure requirements.
Am I assured a bargain when purchasing an REO property in Valencia?
It is commonly believed that any REO must be a bargain and an opportunity for guaranteed profit. This isn't always the case. You have to be prudent about buying a repossession 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.
When contemplating the value of REO property, you need to look closely at 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 buying foreclosures. Still there are also many REOs that are not good buys and may lose money.
Prepared to make an offer?
Most banks have a department dedicated to REO that you'll work with when buying REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.
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 getting 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 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.
Once you've made 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 submit another counter offer. Realize, you'll be working with a process that probably involves a group of people at the bank, and they don't work evenings or weekends. It's not uncommon for the process of offers and counter offers to take days or even weeks. Short Modify, Inc. is accustomed to these situations and will work to ensure there are no undue delays.
Disclosure:
Short Modify, Inc. is not associated with the government, and our service is not approved by the government or any lender;
Even if you use our services, a lender may not agree to change the loan;
If you use our services, you may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender or servicer;
If you stop paying your mortgage, you could lose your home and damage your credit rating.
When contemplating the value of REO property, you need to look closely at 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 buying foreclosures. Still there are also many REOs that are not good buys and may lose money.