Purchasing REO property or a foreclosure in San Diego County?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional.

What's an REO?

"REO" or Real Estate Owned are properties which have been through foreclosure and are currently owned by the bank or mortgage company. This is different than a property up for foreclosure auction. Stoneridge Realty & Property Mangement Services has experience to share with foreclosures and bank owned properties in Vista, California

Stoneridge Realty & Property Mangement Services has experience to share with foreclosures and bank owned properties in Vista, California

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. The buyer must also be ready to pay with cash in hand. And on top of all that, you'll accept the property entirely as is. That possibly may include current liens and even current denizens that need to be expelled.

A bank-owned property, by contrast, is a much neater and attractive option. The REO property was unable to find a buyer during foreclosure auction. The bank now owns it. The bank will handle the elimination of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

Note that REOs may be exempt from standard disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to reveal any defects they are aware of. By hiring Stoneridge Realty & Property Mangement Services, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Am I guaranteed a low price when purchasing an REO property in San Diego County?

It is frequently thought that any REO must be a bargain and a possibility for easy money. This isn't necessarily true. You have to be very careful about buying a REO if your intent is make a profit. Even though the bank is often anxious to sell it quickly, they are also motivated to get as much as they can for it.

Stoneridge Realty & Property Mangement Services has experience to share with foreclosures and bank owned properties in Vista, California

Look carefully at the listing and sales prices of comparable homes in the neighborhood when making an offer on an REO. And factor in any repairs or remodeling 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 and selling foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

Time 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 frequently use 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 their knowledge about the condition of the property and what their process is for taking offers. Since banks most commonly sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. If, as a buyer, you can provide documentation proving your ability to pay, 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 presented your offer, you can expect the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Your deal could be final 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.