Buying REO property or a foreclosure in Oklahoma City?


	Making an offer on a bank-owned property is not something to be taken lightly. If you have any questions regarding real estate in Oklahoma City, Oklahoma, call me or send me an e-mail.

What's an REO?

"REO" or Real Estate Owned are houses which have been foreclosed upon and are now possessed by the bank or mortgage company. This is not the same as real estate up for foreclosure auction. Reuter Realty has experience to share with foreclosures and bank owned properties in Oklahoma City, Oklahoma

Reuter Realty has experience to share with foreclosures and bank owned properties in Oklahoma City, Oklahoma

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. The buyer must also be prepared to pay with cash in hand. Finally, you'll get the property completely as is. That possibly may involve standing liens and even current denizens that may require eviction.

A bank-owned property, conversely, is a more tidy and attractive transaction. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The bank will handle the elimination of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from typical disclosure requirements. For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to disclose any defects they are aware of. By hiring Reuter Realty, you can rest assured knowing all parties are fulfilling Oklahoma state disclosure requirements.

Is REO property in Oklahoma City a bargain?

It is occasionally assumed that any REO must be a good deal and a chance for easy money. This frequently isn't true. You have to be prudent about buying a REO if your intent is make money. Even though the bank is often anxious to offload it promptly, they are also motivated to get as much as they can for it.

Reuter Realty has experience to share with foreclosures and bank owned properties in Oklahoma City, Oklahoma

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. It is possible to find REOs with money-making potential, and many people do very well buying and selling foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.

Ready to make an offer?

Most mortgage companies have staff dedicated to REO that you'll work with in buying REO property from them. Commonly the REO department will use a listing agent to get their REO properties listed on the local MLS.

Before 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 their knowledge about the condition of the property and what their process is for accepting offers. Since banks almost always sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for unseen damage and terminate the offer if you find it. As with making any offer on real estate, providing documentation of your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

Once you've made your offer, you can expect the bank to respond with a counter offer. From there it will be up to you to decide whether to accept their counter, or make another counter offer. Realize, 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 typical for there to be days or even weeks of negotiating back and forth. Reuter Realty is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.