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Looking for REO property or a foreclosure in Sahuarita?
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Savvy consumers will turn to a seasoned pro when considering a foreclosed property.
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What is an REO?
"REO" is an abbreviation for Real Estate Owned. These are properties which have been through foreclosure that the bank or mortgage company currently possesses. This differs from a property up for foreclosure auction.
When buying 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 able to pay with cash in hand. And on top of all that, you'll get the property 100% as is. That possibly could consist of existing liens and even current occupants that need to be evicted.
A bank-owned property, by contrast, is a much cleaner and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The bank will take care of the removal of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from typical disclosure requirements.
For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement,
a document that normally requires sellers to make known any defects they are aware of.
By hiring Southwestern Realty, you can rest assured knowing all parties are fulfilling Arizona state disclosure requirements.
Are REO properties a bargain in Sahuarita?
It is occasionally believed that any REO must be a steal and a chance for easy money. This isn't necessarily true. You have to be prudent about buying a repossession if your intent is to make money off of it. Even though the bank is usually eager to offload it fast, they are also motivated to minimize any losses.
Look carefully at the listing and sales prices of comparable properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or remodeling 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. But there are also many REOs that are not good buys and may not be money makers.
Ready to make an offer?
Most mortgage companies have staff dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will often contract with a listing agent.
Prior to 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 accepting offers. Since banks typically 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 hidden 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 holds for any type of real estate offer.)
Once you've made your offer, you can expect the bank to make a counter offer. From there it will be your choice whether to accept their counter, or offer a counter to the counter offer.
Understand, you'll be contending with a process that usually involves a group of people at the bank, and they don't work evenings or weekends. It's typical for there to be days or even weeks of going back and forth. Southwestern Realty is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.
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Southwestern Realty
Sahuarita, AZ 85629
Office Phone: 520-940-0614 Fax: 888-401-4788
Ralph's Cell: 520-940-0614
Rental WebSite
www.SahuaritaGreenValleyRentals.com
E-mail: mailto:ralphschnelle@gmail.com
 
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