Interested in REO property or a foreclosure in Midlothian?


	Investing in a bank-owned property is not something to be taken casually. Should you have questions regarding real estate in Midlothian, Virginia, call me or send me an e-mail.

What's an REO?

"REO" or Real Estate Owned are homes which have been foreclosed upon that the bank or mortgage company currently possesses. This differs from a property up for foreclosure auction. ProFlex Realty has experience to share with foreclosures and bank owned properties in Midlothian, Virginia

ProFlex Realty has experience to share with foreclosures and bank owned properties in Midlothian, Virginia

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. You must also be willing to pay with cash in hand. Finally, you'll get the property entirely as is. That possibly may consist of current liens and even current occupants that need to be expelled.

A bank-owned property, conversely, is a much neater and attractive deal. The REO property didn't 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 prepare for the issuance of a title insurance policy to the buyer at closing.

Note that REOs may be exempt from standard disclosure requirements. In California, for example, banks are not required to give a Transfer Disclosure Statement, a document that usually requires sellers to disclose any defects they are aware of. By hiring ProFlex Realty, you can rest assured knowing all parties are fulfilling Virginia state disclosure requirements.

Am I guaranteed a bargain when buying an REO property in Midlothian?

It is occasionally presumed that any REO must be a bargain and a possibility for easy money. This isn't always true. You have to be prudent about buying a REO if your intent is profit from the sale. Even though the bank is often anxious to sell it fast, they are also motivated to minimize any losses.

ProFlex Realty has experience to share with foreclosures and bank owned properties in Midlothian, Virginia

When pondering what to pay for 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 and selling foreclosures. But there are also many REOs that are not good buys and may not be money makers.

Ready to make an offer?

Most mortgage companies have a department 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.

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 about 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 unknown damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation demonstrating your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any real estate offer.)

After you've presented your offer, it's customary for the bank to respond with a counter offer. At this point it will be your choice whether to accept their counter, or make another counter offer. Your deal could be settled 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.