Looking for REO property or a foreclosure in Rancho Palos Verdes?


	Savvy consumers will turn to a seasoned pro when considering the purchase of a foreclosed property. Should you have any questions regarding real estate in Rancho Palos Verdes, California, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are houses which have been through foreclosure and are currently possessed by the bank or mortgage company. This is not the same as real estate up for foreclosure auction. Excel Funding Real Estate Services, Inc. has experience to share with foreclosures and bank owned properties in Rancho Palos Verdes, California

Excel Funding Real Estate Services, Inc. has experience to share with foreclosures and bank owned properties in Rancho Palos Verdes, California

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. And on top of all that, you'll get the property 100% as is. That might consist of current liens and even current residents that need to be kicked out.

A bank-owned property, by contrast, is a much neater and attractive transaction. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The lender will handle 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.

Do be aware that REOs may be exempt from normal 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 tell you about any defects of which they are knowledgeable. By hiring Excel Funding Real Estate Services, Inc., you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Am I assured a good deal when buying a bank owned property in Rancho Palos Verdes?

It is frequently assumed that any REO must be a steal and an opportunity for easy money. This isn't always true. You have to be cautious about buying a repossession if your intent is profit from the sale. While it's true that the bank is usually anxious to offload it promptly, they are also motivated to get as much as they can for it.

Excel Funding Real Estate Services, Inc. has experience to share with foreclosures and bank owned properties in Rancho Palos Verdes, California

Look closely at the listing and sales prices of similar 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. The bargains with money making potential exist, 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.

All set to make an offer?

Most banks have staff dedicated to REO that you'll work with when buying REO property from them. Usually 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 discover as much as you can about their knowledge about the condition of the property and what their process is for accepting offers. Since banks usually sell REO properties "as is", it's often prudent 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. As with making any offer on real estate, providing documentation of your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.

After you've made your offer, you can expect the bank to respond with a counter offer. At this point it will be your choice whether to accept their counter, or offer a counter to the counter offer. Your transaction might be final in a single day, but that's usually not the case. 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. Excel Funding Real Estate Services, Inc. is accustomed to these situations and will work to ensure there are no undue delays.