REO FAQ Part II
By Lance Kettler

Interested in more REO frequently asked questions? Here they are!

Is it true that you need a realtor to find an REO?

Yes.  But it shouldn’t be just any realtor.  If you are serious about purchasing REO property and saving tens if not hundreds of thousands of dollars make sure that you have an experienced REO real estate professional.  Banks and lenders are extremely protective of their REO property lists; generally they do not advertise that the properties are REO. They prefer to work with a select few professionals who have proven themselves to be proficient in the REO process.  By not working with a top notch recognized REO specialist you could be preventing yourself from seeing all of the properties that are available

Isn’t buying REO risky because you never really know what you are getting?

No.  In fact buying REO property is very similar to purchasing typical real estate.  You get to view the property before making an offer and after making an offer you are able to have the property inspected in the same way you would with typical real estate. 

Is it true that you can save a substantial amount when purchasing an REO property?

Yes. Right now we are seeing people purchase REOs between 10-30% below market value.  That’s a substantial savings!

If you have questions about purchasing REO property please type your questions below and I will be happy to answer them.  If you are ready to look at what the REO market has to offer please give my office a call and we’ll be happy to help you.

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REO FAQ

by Lance Kettler

Do you have questions about purchasing REO property?  This is a great forum to ask your questions and get answers.  In the meantime I thought I would answer some of the more common questions I get about purchasing REO property.

Aren’t REO properties horrible burned out buildings that they couldn’t even sell at auction?

No.  It is a common misconception that all REO properties are in horrible inhabitable shape.  In today’s market it is estimated that more than half of all properties in foreclosure will become REO property.  Some of those properties will be in rough shape, some will have moderate damage and some will be in relatively great shape with minimal issues similar to typical homes on the market.

If the property does need repairs, doesn’t it just become a cash upfront nightmare for the buyer?

No.  In today’s market banks and lenders are motivated to sell their REO properties.  In some cases they are offering allowances and incentives to take care of the repairs.   In other cases the banks are completing the repairs before offering the home in order to move the home quickly. Additionally, if you qualify, there are some loans available that allow a purchaser of an REO to wrap the costs of the repairs into the home mortgage.

For more REO FAQ check back for the next installment, or subscribe to the blog by pressing the RSS button below.