Making an offer on REO property or a foreclosure in Henderson?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. If you have questions about real estate in Henderson, Nevada, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are properties which have completed the foreclosure process that the bank or mortgage company currently possesses. This is not the same as real estate up for foreclosure auction. Rooftop Realty has experience to share with foreclosures and bank owned properties in Henderson, Nevada

Rooftop Realty has experience to share with foreclosures and bank owned properties in Henderson, Nevada

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. The buyer must also be willing to pay with cash in hand. And on top of all that, you'll receive the property entirely as is. That may consist of current liens and even current residents that need to be removed.

A bank-owned property, on the other hand, is a much neater and attractive proposition. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The bank will attend to 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.

Do be aware that REOs may be exempt from typical disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to tell you about any defects of which they are aware. By hiring Rooftop Realty, you can rest assured knowing all parties are fulfilling Nevada state disclosure requirements.

Am I guaranteed a good deal when investing in a bank owned property in Henderson?

It's sometimes presumed that any REO must be a steal and a chance for guaranteed profit. This often isn't true. You have to be very careful about buying a REO if your intent is to make money off of it. While it's true that the bank is usually anxious to sell it soon, they are also motivated to get as much as they can for it.

Rooftop Realty has experience to share with foreclosures and bank owned properties in Henderson, Nevada

Look closely at the listing and sales prices of similar homes 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. There are bargains with potential to make money, and many people do very well buying and selling 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 banks have staff dedicated to REO that you'll work with when buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.

Prior to 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 about the condition of the property and what their process is for receiving offers. Since banks most commonly 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 terminate 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.)

After you've submitted your offer, you can expect the bank to respond with a counter offer. Then it will be your choice whether to accept their counter, or offer a counter to the counter offer. Understand, you'll be working with a process that generally involves several people at the bank, and they don't work evenings or weekends. It's not unusual for the process of offers and counter offers to take days or even weeks.