Looking for REO property or a foreclosure in Salida?


	Savvy consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. Should you have questions about real estate in Salida, Colorado, call me or send me an e-mail.

What's an REO?

"REO" or Real Estate Owned are homes which have been foreclosed upon and are presently held by the bank or mortgage company. This is different than real estate up for foreclosure auction. Barbara Pearson-Sawyer, GRI has experience to share with foreclosures and bank owned properties in Salida, Colorado

Barbara Pearson-Sawyer, GRI has experience to share with foreclosures and bank owned properties in Salida, Colorado

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. You must also be able to pay with cash in hand. To top everything off, you'll get the property totally as is. That may comprise of prevailing liens and even current denizens that need to be put out.

A bank-owned property, on the other hand, is a much cleaner and attractive transaction. The REO property did not find a buyer during foreclosure auction. Now the bank owns it. The bank will deal with the removal of tax liens, evict occupants if needed and generally arrange 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 California, banks are exempt from giving a Transfer Disclosure Statement, a document that usually requires sellers to reveal any defects of which they are knowledgeable. By hiring Barbara Pearson-Sawyer, GRI, you can rest assured knowing all parties are fulfilling Colorado state disclosure requirements.

Are REO properties a bargain in Chaffee County?

It's frequently assumed that any foreclosure must be a good buy and an opportunity for guaranteed profit. This often isn't true. You have to be very careful about buying a repossession if your intent is make money. While it's true that the bank is usually eager to offload it quickly, they are also motivated to minimize any losses.

Barbara Pearson-Sawyer, GRI has experience to share with foreclosures and bank owned properties in Salida, Colorado

Look closely at the listing and sales prices of comparable properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and may not be money makers.

Prepared to make an offer?

Most banks have a department 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 usually contract with a listing agent.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about what they know concerning the condition of the property and what their process is for getting offers. Since banks typically sell REO properties "as is", it may be in your best interest 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. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

After you've submitted your offer, you can expect the bank to counter offer. Then it will be your choice whether to accept their counter, or submit another counter offer. Understand, you'll be dealing with a process that probably involves multiple people at the bank, and they don't work evenings or weekends. It's typical for there to be days or even weeks of going back and forth. Barbara Pearson-Sawyer, GRI is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.

* MOL = More or Less