Looking for REO or a Foreclosure property in Southern California?

Just as with any property purchase, your wisest move is to hire a professional real estate agent.

What is an REO?

"REO" is Real Estate Owned. These are houses which have gone through foreclosure that the bank or mortgage company now owns. This is not the same as real estate up for foreclosure auction. Noble Real Estate has experience to share with foreclosures and bank owned properties in Diamond Bar, California

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added 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 totally as is. That possibly will include standing liens and even current occupants that may require expulsion.

A bank-owned property, on the other hand, is a much cleaner and attractive deal. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The lender will see 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.

Take notice that REOs may be exempt from normal disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to tell you about any defects of which they are informed. By hiring Noble Real Estate, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Are REO properties a bargain in the Southern California area encompassing Los Angeles, Orange, Riverside and San Bernardino counties?

It's occasionally thought that any foreclosure must be a good deal and a chance for guaranteed profit. This simply is not 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 typically eager to sell foreclosures or REO properties promptly, they are also looking to minimize any losses.

Noble Real Estate has experience to share with foreclosures and bank owned properties in Diamond Bar, California Look carefully at the listing and sales prices of similar homes in the neighborhood when making an offer on 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 flipping foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

Time 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 use a listing agent.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about their knowledge regarding the condition of the property and what their process is for accepting offers. Since banks most commonly 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 unseen damage and withdraw 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 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. Your deal could 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. Noble Real Estate is accustomed to these situations and will work to ensure there are no unnecessary delays.
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