Buying REO property or a foreclosure in Edmond?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. If you have questions about real estate in Edmond, Oklahoma, 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 currently owned by the bank or mortgage company. This is unlike real estate up for foreclosure auction. Churchill Brown & Associates has experience to share with foreclosures and bank owned properties in Edmond, Oklahoma

Churchill Brown & Associates has experience to share with foreclosures and bank owned properties in Edmond, Oklahoma

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. The buyer must also be prepared to pay with cash in hand. And on top of all that, you'll receive the property entirely as is. That possibly may comprise of current liens and even current residents that may require eviction.

A bank-owned property, on the contrary, is a much neater and attractive option. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The bank will take care of the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from typical disclosure requirements. For instance, in California, banks do not have to give a Transfer Disclosure Statement, a document that normally requires sellers to tell you about any defects they are knowledgeable of. By hiring Churchill Brown & Associates, you can rest assured knowing all parties are fulfilling Oklahoma state disclosure requirements.

Am I assured a low price when investing in a bank owned property in Edmond?

It's occasionally presumed that any foreclosure must be a bargain and an opportunity for easy money. This isn't necessarily true. You have to be prudent about buying a repossession if your intent is make a profit. While it's true that the bank is often anxious to offload it soon, they are also looking to minimize any losses.

Churchill Brown & Associates has experience to share with foreclosures and bank owned properties in Edmond, Oklahoma

Look closely at the listing and sales prices of similar properties in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.

Ready to make an offer?

Most lenders have staff dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the local MLS, the lender will often hire a listing agent.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and find out as much as you can about what they know concerning the condition of the property and what their process is for taking offers. Since banks usually 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 unknown damage and terminate 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, it's customary for the bank to respond with a counter offer. From there it will be your choice whether to accept their counter, or make another counter offer. Realize, you'll be dealing with a process that generally involves several people at the bank, and they don't work evenings or weekends. It's not uncommon for there to be days or even weeks of going back and forth. Churchill Brown & Associates is accustomed to these situations and will work to ensure there are no undue delays.