Making an offer on REO property or a foreclosure in Pittsburg?


	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 address any questions you have about real estate foreclosures.

What is an REO?

"REO" or Real Estate Owned are homes which have been through foreclosure that the bank or mortgage company now owns. This is unlike a property up for foreclosure auction. Delta Bay Realty has experience to share with foreclosures and bank owned properties in Pittsburg, California

Delta Bay Realty has experience to share with foreclosures and bank owned properties in Pittsburg, California

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accrued during the foreclosure process. You must also be ready to pay with cash in hand. To top everything off, you'll receive the property totally as is. That could include prevailing liens and even current denizens that may require expulsion.

A bank-owned property, conversely, is a much neater and attractive deal. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will deal with the elimination of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.

Note that REOs may be exempt from normal disclosure requirements. For example, in California, banks are not required to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to make known any defects of which they are knowledgeable. By hiring Delta Bay Realty, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Am I assured a low price when purchasing an REO property in Pittsburg?

It is sometimes thought that any foreclosure must be a bargain and an opportunity for guaranteed profit. This isn't always the case. You have to be very careful about buying a REO if your intent is make money. While it's true that the bank is typically anxious to sell it quickly, they are also looking to minimize any losses.

Delta Bay Realty has experience to share with foreclosures and bank owned properties in Pittsburg, California

Look carefully at the listing and sales prices of comparable homes in the neighborhood when considering the purchase of an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well buying foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

All set to make an offer?

Most banks have staff dedicated to REO that you'll work with when buying REO property from them. Commonly the REO department will use a listing agent to get their REO properties listed on the local MLS.

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 about 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 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 holds for any type of real estate offer.)

After you've made your offer, you can expect the bank to respond with a counter offer. From there it will be your decision whether to accept their counter, or submit another counter offer. Understand, you'll be working with a process that generally involves multiple 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.