Purchasing REO property or a foreclosure in Tulsa?
Investing in a bank-owned property is not something to be taken lightly.
For more information, simply contact me through my site or e-mail me. I'm glad to address questions you have about real estate foreclosures.
What's an REO?
"REO" stands for Real Estate Owned. These are houses which have completed the foreclosure process that the bank or mortgage company currently holds. This is not the same as real estate up for foreclosure auction.
If you buy 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 able to pay with cash in hand. Finally, you'll get the property totally as is. That possibly will include existing liens and even current occupants that need to be kicked out.
A bank-owned property, on the contrary, is a much neater and attractive transaction. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The lender will see to 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.
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 disclose any defects they are knowledgeable of.
By hiring Dennis Hall Realtors, you can rest assured knowing all parties are fulfilling Oklahoma state disclosure requirements.
Is REO property in Tulsa a bargain?
It's occasionally believed that any REO must be a good buy and an opportunity for guaranteed profit. This simply isn't 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 usually anxious to offload it promptly, they are also motivated to minimize any losses.
When pondering what to pay for 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.
There are bargains with potential to make money, 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.
Ready to make an offer?
Most lenders have a department dedicated to REO that you'll work with when buying REO property from them. Commonly the REO department will use a listing agent to get their REO properties listed on the local MLS.
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 receiving 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 unseen damage and cancel the offer if you find it.
If, as a buyer, you can provide documentation demonstrating 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 goes for any type of real estate offer.)
After you've presented 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 submit another counter offer.
Your transaction 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. Dennis Hall Realtors is accustomed to these situations and will work to ensure there are no unnecessary delays.
Dennis Hall Realtors 4948 S Union Ave Tulsa, OK 74107-7840
When pondering what to pay for 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.
There are bargains with potential to make money, 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.