Interested in REO property or a foreclosure in Santa Rosa?


	Investing in a bank-owned property is not something to be taken lightly.

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are homes which have completed the foreclosure process and are presently owned by the bank or mortgage company. This is not the same as real estate up for foreclosure auction. McCall and Company - CPS has experience to share with foreclosures and bank owned properties in Santa Rosa, California

McCall and Company - CPS has experience to share with foreclosures and bank owned properties in Santa Rosa, California

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. You must also be prepared to pay with cash in hand. Finally, you'll get the property 100% as is. That possibly will include current liens and even current denizens that need to be expelled.

A bank-owned property, conversely, is a much neater and attractive deal. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The bank will deal with 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 normal disclosure requirements. In California, for example, banks are not required to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to tell you about any defects they are aware of. By hiring McCall and Company - CPS, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Is REO property in Santa Rosa a bargain?

It's commonly thought that any REO must be a good buy and a chance for easy money. This simply isn't true. You have to be prudent about buying a REO if your intent is make money. Even though the bank is usually eager to offload it quickly, they are also motivated to get as much as they can for it.

McCall and Company - CPS has experience to share with foreclosures and bank owned properties in Santa Rosa, California

When contemplating the value of 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. It is possible to find REOs with money-making potential, and many people do very well flipping foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.

All set to make an offer?

Most lenders have a department dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will usually use a listing agent.

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about what they know about the condition of the property and what their process is for accepting offers. Since banks almost always 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 unknown damage and withdraw the offer if you find it. As with making any offer on real estate, providing documentation of your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

After you've presented your offer, you can expect the bank to counter offer. Then it will be your choice whether to accept their counter, or make another counter offer. Your transaction could be settled in a single day, but that's rare. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. McCall and Company - CPS is accustomed to these situations and will work to ensure there are no unnecessary delays.