Buying REO property or a foreclosure in Lexington?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional.

What's an REO?

"REO" or Real Estate Owned are properties which have completed the foreclosure process that the bank or mortgage company presently possesses. This is unlike real estate up for foreclosure auction. EXIT Real Estate Consultants has experience to share with foreclosures and bank owned properties in Lexington, South Carolina

EXIT Real Estate Consultants has experience to share with foreclosures and bank owned properties in Lexington, South Carolina

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accrued during the foreclosure process. The buyer must also be able to pay with cash in hand. To top everything off, you'll get the property totally as is. That might include prevailing liens and even current residents that need to be put out.

A bank-owned property, on the contrary, is a more tidy and attractive option. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The lender will attend to the removal of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

Note that REOs may be exempt from typical disclosure requirements. For example, in California, banks do not have to give a Transfer Disclosure Statement, a document that usually requires sellers to reveal any defects of which they are informed. By hiring EXIT Real Estate Consultants, you can rest assured knowing all parties are fulfilling South Carolina state disclosure requirements.

Am I assured a low price when investing in a bank owned property in Lexington?

It is frequently believed that any foreclosure must be a steal and an opportunity for easy money. This isn't necessarily the case. You have to be prudent about buying a REO if your intent is make money. While it's true that the bank is often anxious to offload it promptly, they are also motivated to get as much as they can for it.

EXIT Real Estate Consultants has experience to share with foreclosures and bank owned properties in Lexington, South Carolina

Look closely at the listing and sales prices of similar homes in the neighborhood when making an offer on an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in. The bargains with money making potential exist, 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.

Time to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with when buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and find out as much as you can about what they know concerning the condition of the property and what their process is for accepting offers. Since banks usually sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate 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 holds for any real estate offer.)

Once you've submitted your offer, it's customary for the bank to make a counter offer. Then it will be your choice whether to accept their counter, or make another counter offer. Understand, you'll be working with a process that probably involves multiple people at the bank, and they don't work evenings or weekends. It's not unusual for the process of offers and counter offers to take days or even weeks. EXIT Real Estate Consultants is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.