Making an offer on REO property or a foreclosure in Hoboken?


	Smart consumers will turn to a seasoned pro when considering the purchase of a foreclosed property.

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are properties which have been foreclosed upon that the bank or mortgage company currently possesses. This is not the same as a property up for foreclosure auction. RE/MAX Gold Coast Realty has experience to share with foreclosures and bank owned properties in Hoboken, New Jersey

RE/MAX Gold Coast Realty has experience to share with foreclosures and bank owned properties in Hoboken, New Jersey

When buying 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 ready to pay with cash in hand. And on top of all that, you'll get the property totally as is. That may comprise of current liens and even current occupants that may require removal.

A bank-owned property, on the contrary, is a more tidy and attractive option. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The lender will take care of the removal of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from normal disclosure requirements. In California, for example, banks do not have to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to disclose any defects they are knowledgeable of. By hiring RE/MAX Gold Coast Realty, you can rest assured knowing all parties are fulfilling New Jersey state disclosure requirements.

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

It is occasionally assumed that any REO must be a good buy and a chance for guaranteed profit. This often isn't true. You have to be prudent about buying a repossession if your intent is make a profit. While it's true that the bank is often anxious to offload it promptly, they are also motivated to get as much as they can for it.

RE/MAX Gold Coast Realty has experience to share with foreclosures and bank owned properties in Hoboken, New Jersey

Look closely at the listing and sales prices of similar properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and not likely to turn a profit.

Ready to make an offer?

Most banks have a department dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will usually hire a listing agent.

Before 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 their knowledge concerning the condition of the property and what their process is for accepting offers. Since banks usually 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 unseen damage and terminate the offer if you find it. If, as a buyer, you can provide documentation demonstrating your ability to pay, 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 real estate offer.)

Once you've presented your offer, you can expect the bank to make a counter offer. At this point it will be up to you to decide whether to accept their counter, or make another counter offer. Your transaction could be settled in one day, but that's usually not the case. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. RE/MAX Gold Coast Realty is accustomed to these situations and will work to ensure there are no undue delays.