Purchasing REO property or a foreclosure in HUNTLEY?


	Purchasing a bank-owned property is not something to be taken lightly.

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are homes which have been foreclosed upon that the bank or mortgage company currently possesses. This is different than real estate up for foreclosure auction. HUNTLEY REALTY has experience to share with foreclosures and bank owned properties in HUNTLEY, Illinois

HUNTLEY REALTY has experience to share with foreclosures and bank owned properties in HUNTLEY, Illinois

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. The buyer must also be prepared to pay with cash in hand. To top everything off, you'll receive the property 100% as is. That might involve standing liens and even current denizens that need to be thrown out.

A bank-owned property, by contrast, is a much cleaner and attractive proposition. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The bank will deal with the elimination of tax liens, evict occupants if needed and generally prepare 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 usually requires sellers to reveal any defects of which they are aware. By hiring HUNTLEY REALTY, you can rest assured knowing all parties are fulfilling Illinois state disclosure requirements.

Are REO properties a bargain in HUNTLEY?

It's sometimes thought that any foreclosure must be a bargain and an opportunity for guaranteed profit. This isn't necessarily true. You have to be very careful about buying a repossession if your intent is to make money off of it. Even though the bank is typically eager to sell it soon, they are also looking to minimize any losses.

HUNTLEY REALTY has experience to share with foreclosures and bank owned properties in HUNTLEY, Illinois

Look closely at the listing and sales prices of comparable homes 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. It is possible to find REOs with money-making potential, 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.

All set to make an offer?

Most banks have staff dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the local MLS, the lender will usually hire 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 their knowledge regarding the condition of the property and what their process is for accepting offers. Since banks almost always sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unknown damage and retract the offer if you find it. As with making any offer on real estate, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

Once you've presented 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 make another counter offer. Realize, you'll be contending with a process that usually involves several people at the bank, and they don't work evenings or weekends. It's typical for the process of offers and counter offers to take days or even weeks. HUNTLEY REALTY 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.