Purchasing REO property or a foreclosure in Philadelphia?


	Purchasing a bank-owned property is not something to be taken casually. If you have questions about real estate in Philadelphia, Pennsylvania, call me or send me an e-mail.

What's an REO?

"REO" or Real Estate Owned are properties which have been foreclosed upon that the bank or mortgage company currently possesses. This is unlike a property up for foreclosure auction. County R.E.O. llc has experience to share with foreclosures and bank owned properties in Philadelphia, Pennsylvania

County R.E.O. llc has experience to share with foreclosures and bank owned properties in Philadelphia, Pennsylvania

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. You must also be willing to pay with cash in hand. Finally, you'll receive the property completely as is. That possibly could involve prevailing liens and even current tenants that may require eviction.

A bank-owned property, by contrast, is a much neater and attractive proposition. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The bank will see to the elimination of tax liens, evict occupants if needed and generally arrange 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 North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to reveal any defects they are knowledgeable of. By hiring County R.E.O. llc, you can rest assured knowing all parties are fulfilling Pennsylvania state disclosure requirements.

Am I assured a bargain when purchasing a bank owned property in Philadelphia?

It is commonly presumed that any REO must be a good deal and a chance for guaranteed profit. This isn't always true. You have to be prudent about buying a repossession if your intent is to make money off of it. While it's true that the bank is usually eager to offload it quickly, they are also motivated to minimize any losses.

County R.E.O. llc has experience to share with foreclosures and bank owned properties in Philadelphia, Pennsylvania

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 upgrades 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 lose money.

Ready to make an offer?

Most banks have staff dedicated to REO that you'll work with while buying REO property from them. Normally 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 find out as much as you can about what they know regarding 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 unseen damage and cancel 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 is generally true for any real estate offer.)

After you've made your offer, it's customary for the bank to counter offer. From there it will be your choice whether to accept their counter, or submit another counter offer. Realize, you'll be working with a process that most likely involves multiple people at the bank, and they don't work evenings or weekends. It's quite common for there to be days or even weeks of going back and forth. County R.E.O. llc 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.