Looking for REO property or a foreclosure in Hamden?
Purchasing a bank-owned property is not something to be taken lightly.
For more information, just contact me through my site or e-mail me. I'm happy to address any questions you have about real estate foreclosures.
What is an REO?
"REO" stands for Real Estate Owned. These are houses which have been foreclosed upon that the bank or mortgage company presently 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 accrued during the foreclosure process. The buyer must also be prepared to pay with cash in hand. And on top of all that, you'll accept the property entirely as is. That possibly will include standing liens and even current tenants that may require removal.
A bank-owned property, by contrast, is a much cleaner and attractive proposition. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will attend to the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.
You should be aware that REOs may be exempt from typical disclosure requirements.
In California, for example, banks are not required to give a Transfer Disclosure Statement,
a document that typically requires sellers to disclose any defects they are informed of.
By hiring John J Proto, you can rest assured knowing all parties are fulfilling Connecticut state disclosure requirements.
Is REO property in Hamden a bargain?
It's occasionally assumed that any foreclosure must be a good buy and a chance for easy money. This often isn't true. You have to be cautious about buying a REO if your intent is profit from the sale. Even though the bank is often eager to offload it fast, they are also looking to minimize any losses.
When contemplating what to pay for REO property, 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 buying and selling foreclosures. However there are also many REOs that are not good buys and may not be money makers.
All set to make an offer?
Most mortgage companies have staff dedicated to REO that you'll work with while buying REO property from them. Usually 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 find out as much as you can about their knowledge about the condition of the property and what their process is for taking 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 withdraw the offer if you find it.
If, as a buyer, you can provide documentation demonstrating your ability to pay, 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 made your offer, you can expect the bank to counter offer. At this point it will be your choice whether to accept their counter, or submit another counter offer.
Your deal might be final in a single day, but that's rare. 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. John J Proto is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.
John J Proto Calcagni Associates Real Estate 2620 Whitney Avenue Hamden, CT 06518
When contemplating what to pay for REO property, 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 buying and selling foreclosures. However there are also many REOs that are not good buys and may not be money makers.
