Interested in REO property or a foreclosure in Moses Lake?


	Just as with any property purchase, your smartest move is to hire a professional real estate agent. If you have questions about real estate in Moses Lake, Washington, call me or send me an e-mail.

What is an REO?

"REO" is Real Estate Owned. These are houses which have been foreclosed upon that the bank or mortgage company currently owns. This is unlike a property up for foreclosure auction. Windermere R E /K-2 Realty LLC has experience to share with foreclosures and bank owned properties in Moses Lake, Washington

Windermere R E /K-2 Realty LLC has experience to share with foreclosures and bank owned properties in Moses Lake, Washington

If you buy 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. You must also be prepared to pay with cash in hand. To top everything off, you'll receive the property 100% as is. That possibly will consist of standing liens and even current denizens that need to be put out.

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

Do be aware that REOs may be exempt from normal disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that normally requires sellers to tell you about any defects they are informed of. By hiring Windermere R E /K-2 Realty LLC, you can rest assured knowing all parties are fulfilling Washington state disclosure requirements.

Am I assured a low price when investing in an REO property in Moses Lake?

It is frequently presumed that any foreclosure must be a good buy and a possibility for guaranteed profit. This often isn't true. You have to be prudent about buying a repossession if your intent is make money. Even though the bank is usually anxious to offload it quickly, they are also motivated to get as much as they can for it.

Windermere R E /K-2 Realty LLC has experience to share with foreclosures and bank owned properties in Moses Lake, Washington

Look carefully at the listing and sales prices of competing 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. But there are also many REOs that are not good buys and not likely to turn a profit.

All set to make an offer?

Most mortgage companies 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 use 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 regarding 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 withdraw the offer if you find it. If, as a buyer, you can provide documentation proving your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any type of real estate offer.)

Once you've made your offer, it's customary for the bank to make a counter offer. At this point it will be your choice whether to accept their counter, or offer a counter to the counter offer. Be aware, you'll be working with a process that usually involves several people at the bank, and they don't work evenings or weekends. It's quite common for the process of offers and counter offers to take days or even weeks. Windermere R E /K-2 Realty LLC is accustomed to these situations and will work to ensure there are no unnecessary delays.