Interested in REO property or a foreclosure in Clovis?


	Just as with any property purchase, your smartest move is to hire a professional real estate agent. For more information, you can contact me through my site or e-mail me. I'm happy to answer any questions you have regarding real estate foreclosures.

What is an REO?

"REO" or Real Estate Owned are houses which have gone through foreclosure and are now held by the bank or mortgage company. This is unlike real estate up for foreclosure auction. Michael and Sheri Bailey has experience to share with foreclosures and bank owned properties in Clovis, California

Michael and Sheri Bailey has experience to share with foreclosures and bank owned properties in Clovis, California

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. You must also be prepared to pay with cash in hand. Finally, you'll receive the property entirely as is. That could consist of standing liens and even current denizens that need to be kicked out.

A bank-owned property, on the contrary, is a more tidy and attractive option. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The lender will see to 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.

You should be aware that REOs may be exempt from normal disclosure requirements. For example, in California, banks do not have to give a Transfer Disclosure Statement, a document that typically requires sellers to tell you about any defects of which they are aware. By hiring Michael and Sheri Bailey, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Is REO property in Clovis a bargain?

It is commonly thought that any foreclosure must be a good buy and an opportunity for easy money. This often isn't true. You have to be cautious about buying a REO if your intent is to make money off of it. Even though the bank is typically eager to offload it soon, they are also looking to get as much as they can for it.

Michael and Sheri Bailey has experience to share with foreclosures and bank owned properties in Clovis, California

Look carefully at the listing and sales prices of competing properties in the neighborhood when making an offer on 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. However there are also many REOs that are not good buys and not likely to turn a profit.

Time to make an offer?

Most mortgage companies 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 hire 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 concerning the condition of the property and what their process is for getting offers. Since banks almost always sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for unknown damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation showing 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 goes for any real estate offer.)

Once you've made your offer, it's customary for the bank to counter offer. At this point it will be up to you to decide whether to accept their counter, or submit another counter offer. Be aware, you'll be dealing with a process that usually involves multiple people at the bank, and they don't work evenings or weekends. It's quite common for there to be days or even weeks of negotiating back and forth. Michael and Sheri Bailey is accustomed to these situations and will work to ensure there are no unnecessary delays.