Buying REO property or a foreclosure in Great Falls?


	Investing in a bank-owned property is not something to be taken lightly. If you have questions regarding real estate in Great Falls, Virginia, call me or send me an e-mail.

What's an REO?

"REO" is short for Real Estate Owned. These are houses which have completed the foreclosure process and are now owned by the bank or mortgage company. This differs from a property up for foreclosure auction. Harvey Realty Group, LLC has experience to share with foreclosures and bank owned properties in Great Falls, Virginia

Harvey Realty Group, LLC has experience to share with foreclosures and bank owned properties in Great Falls, Virginia

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 ready to pay with cash in hand. Finally, you'll receive the property 100% as is. That possibly will comprise of prevailing liens and even current tenants that need to be evicted.

A bank-owned property, on the contrary, is a more tidy and attractive deal. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will see to the elimination 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 typical disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that ordinarily requires sellers to disclose any defects of which they are knowledgeable. By hiring Harvey Realty Group, LLC, you can rest assured knowing all parties are fulfilling Virginia state disclosure requirements.

Are REO properties a bargain in Fairfax County?

It's sometimes thought that any foreclosure must be a steal and an opportunity for guaranteed profit. This isn't necessarily true. You have to be prudent about buying a repossession if your intent is profit from the sale. While it's true that the bank is typically eager to sell it quickly, they are also motivated to get as much as they can for it.

Harvey Realty Group, LLC has experience to share with foreclosures and bank owned properties in Great Falls, Virginia

When considering the value of a foreclosure, 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. There are bargains with potential to make money, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

All set to make an offer?

Most banks have a department dedicated to REO that you'll work with while buying REO property from them. Commonly 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 learn as much as you can about what they know about the condition of the property and what their process is for receiving offers. Since banks most commonly sell REO properties "as is", you may want 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 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 is generally true for any type of real estate offer.)

After you've submitted your offer, it's customary for the bank to counter offer. From there it will be your decision whether to accept their counter, or make another counter offer. Your deal could be final in a single day, but that's usually not the case. 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.