What Is Foreclosure And REO?
You can use my website to search foreclosures and contact me to set up a time to take a look or have me research some info for you. I am a member of RealtyTrac which is the leading provider of foreclosure information.
The most common type of foreclosure property you'll encounter in your home search is a Real Estate Owned, or REO, property. REOs are properties that have been foreclosed and are now owned by the bank.
REOs may be vacant or in need of repair. But often they look and feel just like other homes for sale, and they're listed by a real estate agent. Although they're typically sold as-is, it's not uncommon for an REO to be in move-in condition. But the process of buying an REO is different than other home purchases. An REO property is one that's been foreclosed on and is now owned by the bank.
REO properties fall into two categories:
Move-in condition: The home is in acceptable condition and not in need of rehabilitation. You could buy this property and move in quickly.
Damaged: A damaged REO generally needs repairs and rehabilitation before you can move in. These types of REOs are attractive to investors and some buyers who aren't daunted by the work involved in rehabbing a property. Often, you will get a bigger discount on damaged REO properties, but you have to consider refurbishing costs.
Where can you find REOs for sale?nI have an extensive list of websites and subscriptions to find and learn about foreclosures and REO's.
Just contact me. Oddly enough, it isn't as easy as you think to spot and buy an REO. Most banks and other mortgage institutions do a poor job of marketing these propoerties.
Pros of buying REOs:
• Often, you'll pay a below-market price for the property.
• The process is similar to a "normal" home purchase in that you can secure financing using a traditional mortgage. (Buying an REO property is nothing like buying a foreclosure property at auction with cash.)
• You'll be able to do inspections and secure financing before completing the purchase.
Cons of buying REOs:
• Many banks will require an "as-is" purchase, and if there are problems or necessary repairs, paying for them is your responsibility.
• The process can take longer than a regular home sale.
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Community Updates
Beware the (I'll get your home sold in a week) agent
I hear this one all the time from prospects looking to list their house. "Well, agent xyz told us that if we listed with her, she'd have it sold in a week." This would fall into the category of "If it sounds too good to be true, the probably is." The majority of agents are not going to make this claim, but rather will give you an honest market analysis, inform you as to how weak or strong the market is, especially the market in which your home resides, and present the objective facts. A good agent will then lay out an effective marketing plan, where the majority of the focus should be on "online marketing". Be careful to not get caught up in empty promises, reduced commissions, and being talked in to lowering your price below market value (unless you must have a quick sale). The key to choosing a good listing agent is to objectively determine who is going to provide you the best opportunity to sell your home. Will your listing agent also aggressively work to find buyers, or will they just list your home and wait for another agent to do the work.
"The Bridge"
"The Bridge" has been referred to by the Wharf Bridge, the Kentucky Fried Chicken Bridge, the bridge connecting East and West, among other names. In the good old days, this was actually a draw bridge converted to the current permanent structure. In the 90's when the 3 lane was installed, there was talk about removing the bridge and making some drastic changes. All in all, the base of the bridge remained, and the upper structure was improved. I remember as a kid jumping off the bridge, and fishing on and under the bridge. In fact, an unforgettable memory I have is when I was fishing with my cousin and I casted out trying to reach the opposite corner of the bridge with my lure. In mid air, a pigeon flew and the timing was so great that my line wrapped around the pigeon, and the pigeon went into the water. I reeled it up and had caught a pigeon. My cousin then decided to hold this pigeon inside the front of his coat. We went to show people at Okoboji Boats what we had caught. When we got there, he opened his jacket, and the pigeon had pooped all over his white shirt.
"The Harbor"
The harbor is a man made inlet located on the north end of West Lake. A board walk surrounds the harbor and this is one of the most tranquil parts of the lake. Homeowners in the harbor have a more affordable way to have access to West Lake, and still get to enjoy the clean waters West Lake has to offer. Homes in the Harbor typically range from about $350k to as much as $700k.
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