Monday, May 9, 2011

Rewards of purchasing Real Estate Owned Properties

A lot of real estate investors concentrate on purchasing foreclosures as a way to locate with a lot of equity at a discounted price. California Escrow Service would like to share some information on purchasing REO Properties. REOs or Real Estate Owned Properties are properties owned by a bank. These properties have undergone the foreclosure process, but no one successfully bid on them for purchase. There are a lot of rewards to purchasing Bank REOs.



Rewards of purchasing Bank REO Properties

· All liens against the property are removed once it becomes an REO, and taxes are paid.

· Unlike properties at foreclosure auction, REOs can be inspected prior to contract, and are listed with real estate agents.

· While a lot of foreclosures are frequently in terrible condition, REOs are normally reconstructed to at least a readily salable condition by the lending bank.

· The bank or lending institution that possesses the property will oftentimes offer financing with better deals than they would offer on traditional properties.

· The bank or lender that possesses the property will frequently furnish an allowance for certain repairs.

· You will be able to save money in your title search if you use the same title company that the lender used during foreclosure. They will often discount the cost up to as much as 100%!

· REO properties are commonly listed on your local MLS (multiple listing service), or can be located by going directly to your local REO bank

· REOs will frequently include appliances

· While in hot markets, you could not see a variation in price between an REO and a typical property, on slower markets, you can pick up an REO at discounts to the property’s real value.

Note that lenders and banks do not like holding REOs on the books, and they attempt to get rid of these as promptly as possible.

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