What You Need To Know About Buying Forclosures

What is a Foreclosed Property?

A foreclosed property – also known as Real Estate Owned (REO) – is a home that was once customer-owned but has been turned back to the mortgage holder as the result of a foreclosure action or acceptance of a deed-in-lieu of foreclosure.

A foreclosure can occur when mortgage payments are not made over a period of time and efforts to resolve the default are unsuccessful. While we make every effort to help customers remain in their homes, sometimes foreclosure becomes the only option.

Revitalizing neighborhoods and communities is our goal, which is accomplished when REO properties are purchased by buyers who will occupy them as their primary residence.

Are Properties Sold at a Discount?

 

Properties are listed at fair market value. Banks work with local real estate agents to review similar listings for price comparisons, assess the property condition, and set an accurate price.

Making properties attractive to buyers is important to the bank, so they will make every effort to maintain and prepare homes for sale, making repairs as needed.

Do Home buyers Have To Compete with Real Estate Investors?

If you plan to live in a property as your main home, you can make an offer during a special time frame reserved for buyers who will occupy the property as their primary residence. This time period helps buyers planning to live in a home get their offers considered before buyers

Do I Need Cash To Buy A REO Property?

You can finance many REO properties through a lender of your choice. Home inspections on foreclosed properties may be required for certain types of financing; speak with a home mortgage consultant for additional information. If you have sufficient cash to buy a home, be sure to determine whether your needs are better met by using financing or buying with cash. A home mortgage consultants can help you to understand your financing options. What Conditions Are the Homes In?

Not all properties need the same level of preparation for sale. However, banks often paint, replace carpeting, and – in some cases – install appliances.

If you’re considering a property that needs renovation, find out about a loan that combines mortgage and renovation financing.