Interested in REO property or a foreclosure in Ocean County?
Savvy consumers will turn to a seasoned pro when considering a foreclosed property. For more information, you can contact me through my site or e-mail me. I'm happy to answer any questions you have regarding real estate foreclosures.
What's an REO?
"REO" or Real Estate Owned are properties which have completed the foreclosure process that the bank or mortgage company currently holds. This is unlike real estate up for foreclosure auction.
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 able to pay with cash in hand. Finally, you'll get the property 100% as is. That may comprise of standing liens and even current occupants that may require eviction.
A bank-owned property, conversely, is a more tidy and attractive option. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will attend to the removal of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from typical disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that usually requires sellers to make known any defects of which they are informed. By hiring Charlene Grant with RE/MAX New Beginnings, LLC, you can rest assured knowing all parties are fulfilling New Jersey state disclosure requirements.
Am I guaranteed a good deal when buying an REO property in Manahawkin?
It is frequently assumed that any foreclosure must be a bargain and a possibility for easy money. This isn't necessarily the case. You have to be cautious about buying a repossession if your intent is profit from the sale. While it's true that the bank is typically eager to sell it quickly, they are also looking to get as much as they can for it.
Look carefully at the listing and sales prices of similar properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and may not be money makers.
Time 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.
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 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 cancel the offer if you find it. If, as a buyer, you can provide documentation proving your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any real estate offer.)
After you've submitted your offer, you can expect 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 might be settled in a single day, but that's usually not the case. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Charlene Grant with RE/MAX New Beginnings, LLC is used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.
* MOL = More or Less
Your Jersey Shore Real Estate Shopping Assistant Charlene Grant, Broker Associate
RE/MAX New Beginnings Realty, 411 Main St., Toms River, NJ 08753 Cell Direct 609-312-6625
Look carefully at the listing and sales prices of similar properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and may not be money makers.
