Interested in REO property or a foreclosure in Springfield?


	Purchasing a bank-owned property is not something to be taken casually.

What's an REO?

"REO" stands for Real Estate Owned. These are homes which have been through foreclosure and are currently possessed by the bank or mortgage company. This differs from real estate up for foreclosure auction. Carol Jones Realtors has experience to share with foreclosures and bank owned properties in Springfield, Missouri

Carol Jones Realtors has experience to share with foreclosures and bank owned properties in Springfield, Missouri

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. You must also be ready to pay with cash in hand. And on top of all that, you'll accept the property totally as is. That could comprise of current liens and even current occupants that need to be kicked out.

A bank-owned property, by contrast, is a much cleaner and attractive option. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The bank will deal with the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from normal disclosure requirements. For instance, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that typically requires sellers to make known any defects they are aware of. By hiring Carol Jones Realtors, you can rest assured knowing all parties are fulfilling Missouri state disclosure requirements.

Is REO property in Springfield a bargain?

It's frequently believed that any REO must be a bargain and an opportunity for guaranteed profit. This isn't necessarily true. You have to be very careful about buying a REO if your intent is make money. Even though the bank is usually anxious to sell it promptly, they are also motivated to minimize any losses.

Carol Jones Realtors has experience to share with foreclosures and bank owned properties in Springfield, Missouri

When considering the value of a foreclosure, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well flipping foreclosures. Still there are also many REOs that are not good buys and may not be money makers.

All set to make an offer?

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

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about their knowledge about the condition of the property and what their process is for taking offers. Since banks typically sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unseen damage and retract the offer if you find it. If, as a buyer, you can provide documentation showing your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes for any type of real estate offer.)

Once you've presented your offer, it's customary for the bank to make a counter offer. At this point it will be up to you to decide whether to accept their counter, or make another counter offer. Your deal might be settled in one day, but that's rare. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Carol Jones Realtors is accustomed to these situations and will work to ensure there are no undue delays.