Interested in REO property or a foreclosure in Newcastle?


	Making an offer on a bank-owned property is not something to be taken casually.

What is an REO?

"REO" stands for Real Estate Owned. These are properties which have gone through foreclosure that the bank or mortgage company presently possesses. This is unlike real estate up for foreclosure auction. Home Place Realty has experience to share with foreclosures and bank owned properties in Newcastle, Wyoming

Home Place Realty has experience to share with foreclosures and bank owned properties in Newcastle, Wyoming

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. The buyer must also be prepared to pay with cash in hand. Finally, you'll accept the property entirely as is. That possibly may comprise of current liens and even current tenants that need to be thrown out.

A bank-owned property, on the contrary, is a much neater and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will see 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.

Do be aware that REOs may be exempt from normal disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to make known any defects they are knowledgeable of. By hiring Home Place Realty, you can rest assured knowing all parties are fulfilling Wyoming state disclosure requirements.

Is REO property in Newcastle a bargain?

It is occasionally presumed that any REO must be a good buy and a chance for easy money. This isn't necessarily the case. You have to be cautious about buying a REO if your intent is make a profit. While it's true that the bank is often anxious to offload it quickly, they are also motivated to minimize any losses.

Home Place Realty has experience to share with foreclosures and bank owned properties in Newcastle, Wyoming

When contemplating 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 buying foreclosures. Still there are also many REOs that are not good buys and may lose money.

Time to make an offer?

Most mortgage companies 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 hire a listing agent.

Prior to 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 regarding the condition of the property and what their process is for taking offers. Since banks almost always sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for unknown damage and retract 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. Then it will be your decision whether to accept their counter, or offer a counter to the counter offer. Be aware, you'll be dealing with a process that usually involves a group of people at the bank, and they don't work evenings or weekends. It's typical for there to be days or even weeks of negotiating back and forth.