Interested in REO property or a foreclosure in Anaheim Hills, Orange or Yorba Linda?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. 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 Real Estate Owned. These are properties which have been through foreclosure and are currently possessed by the bank or mortgage company. This differs from real estate up for foreclosure auction. First Team Real Estate has experience to share with foreclosures and bank owned properties in Anaheim Hills, California

First Team Real Estate has experience to share with foreclosures and bank owned properties in Anaheim Hills, California

When buying a property during a foreclosure trustee sale or an auction, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. You must also be able to pay with cash in hand. To top everything off, you'll receive the property 100% as is. That possibly could include existing liens and even current denizens that need to be put out.

A bank-owned property, on the contrary, is a much neater and attractive transaction. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The lender will deal with the elimination 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. In California, for example, banks are not required to give a Transfer Disclosure Statement, a document that normally requires sellers to reveal any defects of which they are informed. By hiring Michael Pacaud, a Broker Associate with First Team Real Estate, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Am I guaranteed a bargain when purchasing an REO property in Anaheim Hills?

It is occasionally presumed that any foreclosure must be a good buy and a possibility for guaranteed profit. This isn't necessarily the case. You have to be very careful about buying a REO if your intent is to make money off of it. Even though the bank is often eager to sell it quickly, they are also motivated to get as much as they can for it.

First Team Real Estate has experience to share with foreclosures and bank owned properties in Anaheim Hills, California

When pondering what to pay for 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 flipping foreclosures. Still there are also many REOs that are not good buys and may not be money makers. As a professional real estate consultant, Michael Pacaud assists his clients in accurately analyzing the properties condition and location compared with recently sold properties in the area in order to determine whether a home is a great buy or overpriced.

Prepared to make an offer?

Most mortgage companies 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 contract with a listing agent.

Before making your offer, your agent should contact either the listing agent or REO department at the bank and discover as much as they can about their knowledge concerning the condition of the property and what their process is for receiving offers. Since banks almost always sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unseen damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation showing your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any type of real estate offer.)

After you've presented your offer, you can expect the bank to counter offer. At this point it will be your decision whether to accept their counter, or offer a counter to the counter offer. Your transaction might be final in one 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.