Looking For REO Foreclosures 

REO Foreclosures

Have you looked into buying foreclosed homes as a way to make some money or maybe just to get yourself a nice home at a cheap price? If you have, you may be surprised to know that it's not as easy as you may think. Foreclosed properties are often available for sale at a steeply discounted price.

With that said, buyers need to be aware that buying and living in a foreclosed property isn’t as easy as it sounds. That is why some buyers rather opt for properties that are referred to as REOs. These properties are real estate owned.

The Foreclosure Process - Lengthy - Drawn Out 

As previously stated, buying and moving into a foreclosed home isn’t always as easy as it sounds. Some states tend to draw out the process, you need to know that just because you are the winning bidder at a foreclosure auction, doesn’t mean that you can move in right away.

In fact, you may still end up with no home. Why? Because many states have redemption laws. These laws give delinquent borrowers time to get their mortgage back in good standing.

It's also important to know that many people don't want to leave their homes. While many will do so when faced with a legal eviction notice, you may be surprised how many occupants put up a fight. In fact, there are even cases where lawsuits were brought against the new buyers! If you are unable to afford the cost of legal representation, foreclosures may not be in your best interest.

Tax Foreclosures & Due Diligence

Tax Foreclosures

Liens and back taxes also need to be examined. Depending on the state in question, buyers of foreclosure properties may be responsible for any outstanding liens or back taxes. Don't let this come as a surprise to you after the fact.

If you're not careful, this can significantly increase the cost of a foreclosure, possibly making it no longer affordable. For your own personal protection, always consult with a professional before buying a foreclosed property, especially at a real estate auction.

Buying Homes In Foreclosure

The buying of foreclosures can be considered a risky business, there are many homeowners who opt to purchase real estate owned (REO) home or property. these properties are owned by the original lenders.

During this process, the lender is commonly referred to as the investor. Often times, the lender in question will buy back the home at a real estate auction. This is often done when not enough interest in generated in the auction or when the bids are anticipated to be or are low.

Buying REO Foreclosures

Many experts state that buying a REO home is the best way to buy a property that is in trouble. Why? Because at this stage, the home is likely cleared of all occupants. Financial lenders often have the means and the power to evict all occupants, even those who are against leaving.

The only individuals you should have to deal with are the investors, which would be the bank. In rare events, a bank may turn over the sale of the home to a real estate agent. However, since real estate agents take a percentage of each sale, the asking price of an REO home is likely to increase. For the best price, deal with banks directly.

How To Find REO Foreclosures

How can you find real estate own properties? Visit all local banks in your area, ask if there are any real estate owned properties currently available for sale. If so, request information on those properties.

The online websites of nationally owned, but locally operated banks can be examined as well. Many times, REO properties are listed for sale online. Remember, the same information can be acquired by scheduling an in person meeting with the bank’s loan officer or real estate advisor.

An important warning, whenever you are interested in buying a home, whether it be through a traditional real estate agent sale, an REO, or a foreclosed property, never enter into any agreements without the proper legal knowledge. Always hire or consultant with an attorney who specializes in real estate or foreclosures.

Home > Foreclosures >> REO Foreclosures

Tags: Real Estate Articles  Flipping Real Estate 

Tax House Lien Image by krishna arts at FreeDigitalPhotos.net

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