REO Information
REO is an acronym used by financial institutions, which means Real Estate Owned, and has come back into the bank’s portfolio via a foreclosure process.
The purchase of a REO property is much different than conventional homes and outlined below are the major points of difference. Most REO properties are sold as is with the seller making no repairs, and is addressed in their corporate addendums stating that the buyer will purchase as is but still have the right and contingencies of inspections.
Furthermore, the seller does not provide a sellers disclosure statement, as they have no information on how the former owner was maintaining the property other than what is evidenced by the home’s current condition.
Why REO is Different
If you are in the market for a foreclosed home, you came to the right place to get the help you need in the SW Portland, Oregon area. We are experienced foreclosure specialists and will help you buy a foreclosed home in the SW Portland, Oregon market place. HUD, VA and institutional lenders sometimes offer excellent buys on foreclosed real estate and we can assist you in finding the right home.
HUD, VA and bank owned homes are usually purchased through licensed real estate agents and their approved brokers. We have access to all homes. HUD and VA have a strict bidding procedure and the bids are opened on a specific day of the month. The highest bid will get the award. Institutional lenders usually list their properties directly with a real estate broker and operate in a more traditional sales manner.
FORECLOSED HOMES ARE USUALLY PRICED TO SELL.
Most foreclosed homes are priced at fair market value. However, VA and HUD homes are often priced below area comparables. Furthermore, you may, through the bid process, be able to purchase a home below market value if you shop carefully and use an experienced agent to help. We can help. We can also help you by giving you the comparable pricing information for the community to help you make a good pricing decision when you prepare your bid. You will need to get pre-qualified before making a bid and we will help. We work with lenders who are familiar with the procedures and will prepare the pre-qualification document before you begin your home search. There is no fee for this service. It is of utmost importance to become pre-qualified or better yet pre-approved; as most lenders will not even entertain offers without proof of lender qualification.
YOU CAN BUY A FORECLOSURE HOME.
Anyone with the cash or ability to obtain a mortgage loan can buy a foreclosed home. You will have to qualify for the mortgage as with any home purchase, but we’ll help you with the financing, too. Often, the cash needed to buy a foreclosure is less than you would need to buy a home offered for sale by a non-foreclosure homeowner.
FORECLOSED HOMES CAN BE A BARGAIN!
HUD homes are sold “as is” and HUD does not make repairs or offer warranties. However, the HUD homes are usually the best priced and offer the best value. If you are willing to invest some ‘elbow grease’ in your home, you can get a good buy and make repairs and redecorate to make the foreclosed property a real home. Many will need cleaning up or cosmetic upgrading, but generally your home will be worth a lot more than you paid for it when you have put your decorating touches to work. VA will make some repairs and VA foreclosures are generally in better condition than HUD homes. Institutional lenders evaluate the homes on their individual merits and will determine if the home will be sold “as is” or repaired. Institutional lenders tend to be less rigid and may be negotiable on repairs.
WE’LL PREPARE ALL OF THE PAPERWORK.
We will prepare the bid and all of the contract paperwork for you if you select to bid on a foreclosure. Often the details of closing help and terms and conditions are as important to a seller as the price. We’ll consider all of these needs when we prepare your offer.
