Purchasing REO property or a foreclosure in Fort Wayne?


	Smart consumers will turn to a seasoned pro when considering a foreclosed property.

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are homes which have been foreclosed upon and are now held by the bank or mortgage company. This is not the same as a property up for foreclosure auction. James and Jason at Home Sweet Home Depot, has experience to share with foreclosures and bank owned properties in Fort Wayne, Indiana

James and Jason at Home Sweet Home Depot, has experience to share with foreclosures and bank owned properties in Fort Wayne, Indiana

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. The buyer must also be willing to pay with cash in hand. Finally, you'll accept the property 100% as is. That could comprise of existing liens and even current residents that may require eviction.

A bank-owned property, by contrast, is a much neater and attractive option. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The bank 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. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to reveal any defects of which they are aware. By hiring James and Jason at Home Sweet Home Depot,, you can rest assured knowing all parties are fulfilling Indiana state disclosure requirements.

Is REO property in Fort Wayne a bargain?

It's frequently assumed that any REO must be a bargain and a possibility for guaranteed profit. This frequently isn't true. You have to be cautious about buying a REO if your intent is make money. Even though the bank is typically eager to sell it soon, they are also motivated to get as much as they can for it.

James and Jason at Home Sweet Home Depot, has experience to share with foreclosures and bank owned properties in Fort Wayne, Indiana

When contemplating the value of 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. The bargains with money making potential exist, and many people do very well buying and selling foreclosures. However there are also many REOs that are not good buys and may lose money.

All set to make an offer?

Most mortgage companies have staff 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 often 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 about the condition of the property and what their process is for receiving 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 unseen damage and withdraw the offer if you find it. As with making any offer on real estate, providing documentation of your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

After you've made your offer, you can expect 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 offer a counter to the counter offer. Realize, you'll be contending with a process that most likely involves several people at the bank, and they don't work evenings or weekends. It's quite common for there to be days or even weeks of going back and forth. James and Jason at Home Sweet Home Depot, is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.