Purchasing REO property or a foreclosure in Mountain Rest?


	Making an offer on a bank-owned property is not something to be taken lightly. Should you have any questions regarding real estate in Mountain Rest, South Carolina, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are homes which have been through foreclosure that the bank or mortgage company currently owns. This is not the same as real estate up for foreclosure auction. Oconee Real Estate has experience to share with foreclosures and bank owned properties in Mountain Rest, South Carolina

Oconee Real Estate has experience to share with foreclosures and bank owned properties in Mountain Rest, South Carolina

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be willing to pay with cash in hand. Finally, you'll get the property totally as is. That possibly will include standing liens and even current occupants that may require eviction.

A bank-owned property, conversely, is a much cleaner and attractive transaction. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will deal with the elimination of tax liens, evict occupants if needed and generally organize 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 not required to give a Transfer Disclosure Statement, a document that usually requires sellers to disclose any defects they are knowledgeable of. By hiring Oconee Real Estate, you can rest assured knowing all parties are fulfilling South Carolina state disclosure requirements.

Is REO property in Mountain Rest a bargain?

It is commonly thought that any REO must be a good deal and a possibility for guaranteed profit. 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 often eager to sell it soon, they are also motivated to minimize any losses.

Oconee Real Estate has experience to share with foreclosures and bank owned properties in Mountain Rest, South Carolina

When pondering 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. There are bargains with potential to make money, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and may lose money.

Time to make an offer?

Most banks have staff dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will frequently use a listing agent.

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 what they know regarding the condition of the property and what their process is for taking offers. Since banks usually sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for hidden damage and terminate 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.

After you've made your offer, you can expect the bank to make a counter offer. From there it will be up to you to decide whether to accept their counter, or submit another counter offer. Your deal might be settled 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.