Making an offer on REO property or a foreclosure in Morristown?


	Just as with any property purchase, your wisest move is to hire a professional real estate agent. If you have any questions about real estate in Morristown, Tennessee, call me or send me an e-mail.

What is an REO?

"REO" is Real Estate Owned. These are homes which have gone through foreclosure and are now held by the bank or mortgage company. This differs from real estate up for foreclosure auction. Re/Max Real Estate Ten has experience to share with foreclosures and bank owned properties in Morristown, Tennessee

Re/Max Real Estate Ten has experience to share with foreclosures and bank owned properties in Morristown, Tennessee

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. You must also be able to pay with cash in hand. Finally, you'll get the property 100% as is. That possibly may involve current liens and even current denizens that may require expulsion.

A bank-owned property, by contrast, is a more tidy and attractive proposition. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The lender will deal with the removal of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

Take notice 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 usually requires sellers to make known any defects they are aware of. By hiring Re/Max Real Estate Ten, you can rest assured knowing all parties are fulfilling Tennessee state disclosure requirements.

Am I guaranteed a good deal when buying a bank owned property in Morristown?

It is commonly presumed that any REO must be a steal and a possibility for guaranteed profit. This often isn't true. You have to be cautious about buying a repossession if your intent is make a profit. While it's true that the bank is usually anxious to offload it promptly, they are also motivated to minimize any losses.

Re/Max Real Estate Ten has experience to share with foreclosures and bank owned properties in Morristown, Tennessee

When pondering the value of a foreclosure, carefully analyze comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well buying foreclosures. Still there are also many REOs that are not good buys and may lose money.

All set to make an offer?

Most mortgage companies have a department 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 frequently 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 taking offers. Since banks typically sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unseen damage and terminate the offer if you find it. If, as a buyer, you can provide documentation showing 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 goes for any type of real estate offer.)

After you've presented your offer, you can expect the bank to make a counter offer. Then it will be your choice whether to accept their counter, or submit another counter offer. Realize, you'll be working with a process that generally involves a group of people at the bank, and they don't work evenings or weekends. It's quite common for the process of offers and counter offers to take days or even weeks.