MAKE AN REO YOUR HOME
WHAT IS AN REO
An REO ‘Real Estate Owned’ property is one of three kinds of foreclosures. It is a property that was offered at public auction, did not sell, and was bought by the lender. Now, the lender owns both the loan and the property an offers it for sale as an REO. The other types of foreclosures are those sold on the court house steps, known as ‘Trustee Sales’, or those sold directly by the owner of the property in default. Of the three types of foreclosures Bayside Real Estate sells REO’S.
WHY BUY AN REO
It’s a simple fact that buying an REO property can save you money. Not only do REO properties sell from 5% to 10% less than other sales, but there can be other significant savings and incentives. Since many of our communities are being hit with foreclosures there are homes in all price ranges being sold as REO’S. The fact is - they are a part of the housing inventory and some are lovely homes with attractive prices.
THE BASICS YOU NEED TO KNOW ABOUT REO’S
Almost everything about buying a ‘bank owned property’ is different from buying an ‘owner owned property’. On the listing side of the REO transaction there is an asset manager. The asset manager is the person who works with the listing agent and is the go-between for the listing agent and the bank. On the buying side of the REO transaction is the buyer’s agent. The buyer’s agent works with the seller’s agent. The ‘team’ in an REO sale is the asset manager and a host of other departments with specific REO related jobs.
REO MYTHS
There are many myths about buying foreclosure properties. One myth is that you must pay cash and take the property with liens. The truth is that when you buy a bank owned property, you can apply for financing and you receive a property with no liens and a clear title. Another myth is that all bank owned properties are sold ‘As Is’. Not all REO’S are sold ‘As Is’. Sometimes health and safety repairs are made or, credits are given by the bank. Another myth is that banks are exempt from all disclosure. It is true that banks are exempt from most disclosures, but they are not always exempt from local, state and federal ordinances. Each bank and each situation is different, so it’s necessary to work with an experienced REO agent to delve into the matter and not be vulnerable.
HOW TO BUY AN REO
Should you want to try your hand at buying an REO property, our advice is to choose one of our agents with extensive foreclosure experience. It is only after a few dozen sales that you begin to understand the process fully. Bayside Real Estate took its twenty-plus-years of traditional, private sales real estate experience and applied it to REO sales over the past two years. This has resulted in highly trained agents who know and understand the REO side of real estate sales. We are not your typical REO Company of the past. We bring the same service, professionalism, and integrity of traditional sales to the REO market.
HOW WE CAN HELP
Besides the obvious advantage of a lower sales price, there are the additional little known savings which fluctuate from lender to lender that can add up to huge savings. The agent’s calm and clear understanding of the various bank’s hot buttons and acceptable terms, will help you to make an REO property your home at the best possible price. We will give you the quality representation we are known for with our traditional sales to the REO market. It’s time to raise the bar on the kind of service and representation buyers have available to them in the REO market. We believe REO’S deserve the same treatment as private sales.
