Looking for REO property or a foreclosure in Irvine?


	Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property.

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are homes which have completed the foreclosure process that the bank or mortgage company currently holds. This differs from real estate up for foreclosure auction. The Real Estate Shop has experience to share with foreclosures and bank owned properties in Irvine, California

The Real Estate Shop has experience to share with foreclosures and bank owned properties in Irvine, California

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. You must also be able to pay with cash in hand. And on top of all that, you'll accept the property entirely as is. That possibly will comprise of prevailing liens and even current residents that need to be thrown out.

A bank-owned property, by contrast, is a more tidy and attractive transaction. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The lender will take care of 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.

Do be aware that REOs may be exempt from standard disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to disclose any defects they are aware of. By hiring The Real Estate Shop, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Are REO properties a bargain in Irvine?

It is frequently presumed that any REO must be a good buy and a possibility for easy money. This simply isn't true. You have to be cautious about buying a REO if your intent is to make money off of it. While it's true that the bank is often eager to sell it quickly, they are also looking to minimize any losses.

The Real Estate Shop has experience to share with foreclosures and bank owned properties in Irvine, California

Look carefully at the listing and sales prices of comparable properties in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. It is possible to find REOs with money-making potential, and many people do very well buying and selling foreclosures. But there are also many REOs that are not good buys and may not be money makers.

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. Normally 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 learn as much as you can about what they know concerning the condition of the property and what their process is for taking 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 unseen damage and cancel the offer if you find it. If, as a buyer, you can provide documentation showing your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any type of real estate offer.)

Once you've submitted your offer, you can expect the bank to make a counter offer. Then it will be your choice whether to accept their counter, or submit another counter offer. Your deal might be final in one 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. I am accustomed to these situations and will work to ensure there are no unnecessary delays.