What Is A REO Property And How To Own One
A real estate owned (REO) property is acquired as a result of a foreclosure action on a mortgage that was voluntarily turned back to the lender often referred to as a “deed in lieu of foreclosure.” The investor (which may be the original lender or another lien holder of the mortgage) becomes the legal owner of the property and offers it for sale to the open market.
STEP 1: Moving forward there are two ways to find out how much you may be able to borrow:
· A mortgage prequalification lets you know how much you can borrow, based on the basic financial data you are providing
·
A preapproved letter tells a Realtor and seller that you've been preapproved for a set amount based on a review of your credit information (Tax returns, paystubs, W-2’s etc.
STEP 2: You are then to select a REALTOR of your choice to represent you in the negotiations, contract inspections closing etc..
STEP 3: Work with your REALTOR to locate a property
STEP 4: You and your Realtor will contact the Listing agent top view any properties that meets your interest.
STEP 5: After viewing a property, you and your REALTOR should discuss any offers
with the listing REALTOR. As with any property listing, the asking price takes into
account the home’s condition as compared to the local market.If you are a cash
buyer, you don’t need a pre-qualification letter, but will be required to provide proof
of funds when your offer is proposed.
If your offer is accepted, notify your home mortgage lender immediately to continue the processing of your loan.
Please Note: Work with your lender and their processor to get all loan documentation submitted in a timely manner. This will ensure your loan processing may not be delayed.
Comments(1)