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Interested in REO property or a foreclosure in Fall River?
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Purchasing a bank-owned property is not something to be taken casually.
If you have questions regarding real estate in Fall River, Massachusetts, call me or send me an e-mail.
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What is an REO?
"REO" or Real Estate Owned are houses which have been foreclosed upon that the bank or mortgage company now possesses. This differs from real estate up for foreclosure auction.
When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. The buyer must also be able to pay with cash in hand. And on top of all that, you'll receive the property entirely as is. That possibly could include prevailing liens and even current occupants that need to be thrown out.
A bank-owned property, on the other hand, is a much cleaner and attractive option. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The lender will see to the removal of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from standard 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 reveal any defects of which they are informed.
By hiring EZ Home Search Real Estate, you can rest assured knowing all parties are fulfilling Massachusetts state disclosure requirements.
Am I assured a good deal when buying a bank owned property in Fall River?
It is occasionally believed that any foreclosure must be a steal and a possibility for easy money. This isn't always true. You have to be very careful about buying a REO if your intent is make money. Even though the bank is usually eager to sell it promptly, they are also motivated to minimize any losses.
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 lose money.
Prepared to make an offer?
Most mortgage companies have a department dedicated to REO that you'll work with while buying REO property from them. Commonly 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 concerning the condition of the property and what their process is for taking offers. Since banks most commonly sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for hidden damage and withdraw the offer if you find it.
If, as a buyer, you can provide documentation demonstrating 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 real estate offer.)
Once you've presented your offer, it's customary for the bank to make a counter offer. From there it will be up to you to decide whether to accept their counter, or submit another counter offer.
Your deal might be final 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. EZ Home Search Real Estate is accustomed to these situations and will work to ensure there are no undue delays.
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EZHS Agents
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