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Real estate owned property is also nicknamed “REO” for short. The real definition in whole can be a little complex though. In this blog, we’ll look at things you need to buy a REO property, how to manage REO property, how to search for these types of properties and more.
If you need me to get to the point of where to find them, here you go.
The best way to find real estate owned property is by going through a financial institution. Here’s a few well-known national banks that offer homes in this situation:
Bigger Pockets has an awesome list of multiple banks you can see.
Homes officially become real estate owned property after it goes through the process of foreclosure, no way around it.
Foreclosure can occur if you fail to pay off your mortgage and cannot pay for the monthly payments. There are a few ways you can sell your house during foreclosure and avoid the foreclosure process all together.
The best ways you can cut foreclosure is to refinance your loan, sell your house to a cash buyer before it goes into foreclosure or come to an agreement with your loan provider.
Alright, let’s look at some pros of real estate owned property.
You’re rest assured that when you’re dealing with real estate owned properties, you’ll get a clear title. No scams, nothing. It’s safe.
Before buying, banks allow you to request and check the home personally. When dealing with homeowners, this option might be limited, however, with an real estate owned property, you are encouraged to see the state of the house before you buy it.
There’s no way a newbie in real estate with no money will be able to go around this. The bank, like anyone else, wants to know you have money and right away. In other words, can you actually close on the deal?
This one is definitely a con if you’re trying to stay on a tight budget. They definitely will charge higher than most especially when listed with a Realtor.
They are basically the same thing but with different processes. The bank is just reclaiming total ownership of the home because they own the mortgage. Home’s not paid off for. Real estate owned properties went through the foreclosure and they are both owned by the bank.
People coming into real estate always ask this but how do you buy anything? You make an offer or pay the price. Depending on who you buy it from. The process is the same as making your offer on your personal residence, the only difference is, you’re dealing with the bank after all so you might have to do some extra paperwork.
There are many tips on making offers on a real estate owned property, but the most important factor to remember is that if your offer is too low, it will be rejected.
Even though these properties have larger discounts than normal houses put on sale by the real estate agents. Your bank will make a counteroffer and if you really want the house, you will have to make sure you have the budget to meet them somewhere in the middle.
Homes under real estate owned usually come with some type of flaws – they would go through a real estate agent otherwise. This means that you might have to look into real estate owned management companies. Always make sure you do an inventory of your real estate owned property and determine the cost of fixing – if such thing is needed.
You can sell your house in Denver even before it becomes “real estate owned”! Selling it fast to a cash buyer will take away the complications of dealing with a real estate owned property because you’ll avoid that situation entirely! All the while also putting cash in your pockets.
We buy houses in Denver! So don’t hesitate to call us at 303-558-5843 or simply start the selling process right on our website.
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