Looking for REO property or a foreclosure in Charlottesville?


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

What's an REO?

"REO" means Real Estate Owned. These are homes which have completed the foreclosure process that the bank or mortgage company currently owns. This is not the same as a property up for foreclosure auction. Yates Nobles, GRI, SRS, ABR, E-PRO, GREEN - Associate Broker,
Montague, Miller & Co. - Downtown has experience to share with foreclosures and bank owned properties in Charlottesville, Virginia

Yates Nobles, GRI, SRS, ABR, E-PRO, GREEN - Associate Broker,
Montague, Miller & Co. - Downtown has experience to share with foreclosures and bank owned properties in Charlottesville, Virginia

If you buy 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 prepared to pay with cash in hand. Finally, you'll get the property totally as is. That may comprise of current liens and even current occupants that need to be expelled.

A bank-owned property, on the other hand, is a more tidy and attractive proposition. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will take care of the elimination of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from normal disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to reveal any defects they are aware of. By hiring Yates Nobles, GRI, SRS, ABR, E-PRO, GREEN - Associate Broker, Montague, Miller & Co. - Downtown, you can rest assured knowing all parties are fulfilling Virginia state disclosure requirements.

Are REO properties a bargain in Charlottesville City County?

It is occasionally believed that any foreclosure must be a good buy and a possibility for easy money. This frequently 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 usually anxious to offload it soon, they are also looking to get as much as they can for it.

Yates Nobles, GRI, SRS, ABR, E-PRO, GREEN - Associate Broker,
Montague, Miller & Co. - Downtown has experience to share with foreclosures and bank owned properties in Charlottesville, Virginia

Look closely at the listing and sales prices of comparable homes in the neighborhood when considering the purchase of 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 buying and selling foreclosures. Still 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 staff dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the local MLS, the lender will typically 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 find out as much as you can about what they know about the condition of the property and what their process is for taking offers. Since banks usually 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 hidden damage and cancel the offer if you find it. As with making any offer on real estate, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

After you've presented your offer, you can expect the bank to respond with a counter offer. At this point it will be your choice whether to accept their counter, or offer a counter to the counter offer. Your deal 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. Yates Nobles, GRI, SRS, ABR, E-PRO, GREEN - Associate Broker, Montague, Miller & Co. - Downtown is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.