|
Mortgage Services
Specialty Services
Todays Fixed Rate
3 - 3/8 %
Testimonials
"Thank you San Diego Mortgage Group for helping me buy my dream house. You made the process so easy, I never thought I would own a home in California." -- Jesse Kalima "Your website is so helpful, and your loan officers are too!" -- Sydney Miller
|
Bank Owned REO What is an REO Property?An REO (Real Estate Owned) property is a home that has transferred ownership back to the California mortgage company as the result of a home foreclosure. How do Banks Sale REO Properties?Every lender is different in how they manage foreclosed properties, but all banks have the common goal of getting the home off their books fast. Ultimately, they want to get the best price possible for the home, in order to avoid a complete loss on the original mortgage. Usually, banks have an in-house department set up to manage their REO home sales. Once you make an offer to purchase an REO property, usually you will receive a counter-offer. It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. Then you go back with another counter-offer. Then your counter-offer will have to be approved by several people in different departments. Will a Bank Owned REO Property Be in Good Condition?Banks will always want to sell a property in "as is" condition. They will allow you to get all the inspections you want, at your expense, but they may not agree to do any repairs. Even if you agree to “as is," you can always give the bank another opportunity to make repairs or give you a credit after inspections. Remember that the bank does want to sale, sometimes pretty bad. Sometimes they’ll re-negotiate to save the transaction instead of putting the property back on the market, but always remember that most of the time you are getting an amazing deal, even when the home is not in the best condition.
Resources:
|
|
