Purchasing REO property or a foreclosure in Huntley?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. For more information, you can contact me through my site or e-mail me. I'm happy to address questions you have about real estate foreclosures.

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are properties which have gone through foreclosure that the bank or mortgage company now holds. This is unlike real estate up for foreclosure auction. HUNTLEY REALTY has experience to share with foreclosures and bank owned properties in Huntley, Illinois

HUNTLEY REALTY has experience to share with foreclosures and bank owned properties in Huntley, Illinois

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. You must also be able to pay with cash in hand. To top everything off, you'll get the property entirely as is. That possibly could include existing liens and even current tenants that need to be thrown out.

A bank-owned property, on the contrary, is a much cleaner and attractive deal. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will handle 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.

Note that REOs may be exempt from normal disclosure requirements. For example, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to disclose any defects of which they are aware. By hiring HUNTLEY REALTY, you can rest assured knowing all parties are fulfilling Illinois state disclosure requirements.

Am I guaranteed a low price when buying a bank owned property in Huntley?

It is frequently assumed that any REO must be a good deal and a chance for guaranteed profit. This isn't always true. You have to be very careful about buying a REO if your intent is profit from the sale. While it's true that the bank is typically eager to offload it quickly, they are also motivated to minimize any losses.

HUNTLEY REALTY has experience to share with foreclosures and bank owned properties in Huntley, Illinois

When pondering what to pay for a foreclosure, carefully analyze 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. It is possible to find REOs with money-making potential, and many people do very well buying and selling foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.

Time to make an offer?

Most banks have a department 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 contract with a listing agent.

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about what they know concerning the condition of the property and what their process is for getting offers. Since banks most commonly 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 withdraw the offer if you find it. As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.

Once you've submitted your offer, it's customary for the bank to counter offer. Then it will be your choice whether to accept their counter, or submit another counter offer. Be aware, you'll be working with a process that most likely involves several people at the bank, and they don't work evenings or weekends. It's not uncommon for there to be days or even weeks of negotiating back and forth.

* MOL = More or Less