Purchasing REO property or a foreclosure in The Columbia Gorge?


	Just as with any home purchase, your smartest move is to hire a professional real estate agent. If you have questions regarding real estate in The Columbia Gorge, Washington, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are homes which have been through foreclosure and are currently held by the bank or mortgage company. This is not the same as a property up for foreclosure auction. Pathfinder Real Estate Services has experience to share with foreclosures and bank owned properties in The Columbia Gorge, Washington

Pathfinder Real Estate Services has experience to share with foreclosures and bank owned properties in The Columbia Gorge, Washington

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accrued during the foreclosure process. You must also be ready to pay with cash in hand. Finally, you'll accept the property completely as is. That might consist of current liens and even current occupants that may require eviction.

A bank-owned property, on the other hand, is a much cleaner and attractive option. 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 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 California, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to make known any defects of which they are informed. By hiring Pathfinder Real Estate Services, you can rest assured knowing all parties are fulfilling Washington state disclosure requirements.

Am I assured a good deal when buying a bank owned property in The Columbia Gorge?

It's frequently thought that any REO must be a good buy and an opportunity for easy money. This isn't always 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 quickly, they are also looking to minimize any losses.

Pathfinder Real Estate Services has experience to share with foreclosures and bank owned properties in The Columbia Gorge, Washington

When pondering the value of a foreclosure, carefully analyze 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. It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. Still, there are also many REOs that are not good buys and not likely to turn a profit.

All set to make an offer?

Most mortgage companies 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 contract with 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 what they know about the condition of the property and what their process is for getting offers. Since banks almost always sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and retract the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

Once you've submitted your offer, it's customary for the bank to counter offer. Then it will be your decision whether to accept their counter, or offer a counter to the counter offer. Realize, 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 quite common for the process of offers and counter offers to take days or even weeks.

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