Purchasing REO property or a foreclosure in Park City?

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

What is an REO?

"REO" or Real Estate Owned are properties which have gone through foreclosure and are currently owned by the bank or mortgage company. This is different than real estate up for foreclosure auction. Brown & Company of Park City, Inc. has experience to share with foreclosures and bank owned properties in Park City, Utah

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. You must also be able to pay with cash in hand. To top everything off, you'll accept the property entirely as is. That possibly could comprise of existing liens and even current occupants that need to be removed.

A bank-owned property, conversely, is a much cleaner and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The lender will deal with 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 North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to disclose any defects of which they are informed. By hiring Brown & Company of Park City, Inc., you can rest assured knowing all parties are fulfilling Utah state disclosure requirements.

Am I assured a good deal when investing in a bank owned property in Park City?

It's occasionally believed that any foreclosure must be a good buy and a possibility for guaranteed profit. This frequently isn't true. You have to be prudent about buying a REO if your intent is profit from the sale. Even though the bank is usually eager to offload it fast, they are also looking to minimize any losses.

Brown & Company of Park City, Inc. has experience to share with foreclosures and bank owned properties in Park City, Utah When considering the value of REO property, you need to look closely at 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 not be money makers.

Ready 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 often contract with a listing agent.

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 accepting offers. Since banks most commonly sell REO properties "as is", it's often prudent 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 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 goes for any type of real estate offer.)

Once you've submitted your offer, it's customary for the bank to respond with a counter offer. From there it will be your decision whether to accept their counter, or offer a counter to the counter offer. Be aware, you'll be contending with a process that generally involves several people at the bank, and they don't work evenings or weekends. It's not uncommon for the process of offers and counter offers to take days or even weeks.

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