Making an offer on REO property or a foreclosure in Knob Noster?


	Purchasing a bank-owned property is not something to be taken casually. If you have any questions regarding real estate in Knob Noster, Missouri, call me or send me an e-mail.

What's an REO?

"REO" is short for Real Estate Owned. These are houses which have completed the foreclosure process that the bank or mortgage company now owns. This is unlike a property up for foreclosure auction. RE/MAX COMPLETE Real Estate has experience to share with foreclosures and bank owned properties in Knob Noster, Missouri

RE/MAX COMPLETE Real Estate has experience to share with foreclosures and bank owned properties in Knob Noster, Missouri

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be willing to pay with cash in hand. To top everything off, you'll get the property completely as is. That may consist of current liens and even current residents that may require eviction.

A bank-owned property, on the other hand, is a much neater and attractive deal. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The lender will attend to the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from standard disclosure requirements. For example, in California, banks are not required to give a Transfer Disclosure Statement, a document that usually requires sellers to reveal any defects of which they are knowledgeable. By hiring RE/MAX COMPLETE Real Estate, you can rest assured knowing all parties are fulfilling Missouri state disclosure requirements.

Is REO property in Knob Noster a bargain?

It's frequently presumed that any REO must be a steal and an opportunity for guaranteed profit. This isn't necessarily true. You have to be very careful about buying a repossession if your intent is profit from the sale. Even though the bank is often eager to sell it fast, they are also motivated to get as much as they can for it.

RE/MAX COMPLETE Real Estate has experience to share with foreclosures and bank owned properties in Knob Noster, Missouri

When contemplating the value of 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. There are bargains with potential to make money, 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 lenders have staff dedicated to REO that you'll work with while buying REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.

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 their knowledge 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 unknown damage and terminate the offer if you find it. If, as a buyer, you can provide documentation proving 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 holds for any type of real estate offer.)

Once you've presented your offer, it's customary for the bank to respond with a counter offer. From there it will be your choice whether to accept their counter, or make another counter offer. Your deal might be settled in one day, but that's rare. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.

COMPLETE
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WARRENSBURG, WHITEMAN AFB, KNOB NOSTER, SEDALIA, WINDSOR, LaMonte, CENTERVIEW
945 NE 105 (Irish Lane) - Knob Noster, MO 65336
660-563-4735 Free Fax (877) 563-5051

VIRTUAL TOURS, ENHANCED Listings are additional services we provide in order for YOUR SPECIAL property to be "FEATURED LISTINGS" on www.realtor.com & www.remax.com