Making an offer on REO property or a foreclosure in Peachtree City?


	Just as with any home purchase, your smartest move is to hire a professional real estate agent. For more information, just contact me through my site or e-mail me. I'm glad to answer any questions you have regarding real estate foreclosures.

What's an REO?

"REO" or Real Estate Owned are properties which have been through foreclosure and are now held by the bank or mortgage company. This is not the same as real estate up for foreclosure auction. Susan Annis & Ernest Johnson has experience to share with foreclosures and bank owned properties in Peachtree City, Georgia

Susan Annis & Ernest Johnson has experience to share with foreclosures and bank owned properties in Peachtree City, Georgia

If you buy 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. The buyer must also be willing to pay with cash in hand. To top everything off, you'll accept the property 100% as is. That possibly could involve current liens and even current residents that need to be evicted.

A bank-owned property, on the contrary, is a much neater and attractive deal. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The lender will take care of the elimination 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 standard disclosure requirements. For example, in California, banks are not required to give a Transfer Disclosure Statement, a document that normally requires sellers to make known any defects of which they are knowledgeable. By hiring Susan Annis & Ernest Johnson, you can rest assured knowing all parties are fulfilling Georgia state disclosure requirements.

Are REO properties a bargain in Fayette County?

It's commonly thought that any foreclosure must be a bargain and a possibility for guaranteed profit. This isn't always the case. You have to be very careful about buying a repossession if your intent is make a profit. Even though the bank is often anxious to sell it soon, they are also looking to get as much as they can for it.

Susan Annis & Ernest Johnson has experience to share with foreclosures and bank owned properties in Peachtree City, Georgia

When pondering what to pay for REO property, carefully analyze comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. But there are also many REOs that are not good buys and may not be money makers.

Ready to make an offer?

Most lenders 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 typically hire 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 their knowledge concerning the condition of the property and what their process is for getting offers. Since banks most commonly 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 hidden 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.

Once you've made your offer, you can expect the bank to counter offer. At this point it will be your choice whether to accept their counter, or offer a counter to the counter offer. Your transaction might be settled in a single day, but that's usually not the case. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Susan Annis & Ernest Johnson is accustomed to these situations and will work to ensure there are no undue delays.