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Blog A Day in March AR Contest 031513...What is A REO & How To Own One

By
Real Estate Agent with Coldwell Banker Access Realty 433494

 

What Is A REO Property And How To Own One

 

AR Contest

 

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.

Posted by

P. Winston Heverly, GRI, ABR, SFR, CDPE, CIAS, PA

We service all of Palm Beach County and S. Florida

 

 513 N. Country Club Drive, Suite 200, Atlantis, FL 33462

Office: (561) 247-7376 - Fax: (561) 537-7223 - Cell: (561) 629-2660

Email: PWH@WinstonRealty.co - Web: WinstonRealty

 

Search: Atlantis, Boca Raton, Lake Worth, Palm Beach Gardens,

South Palm Beach, West Palm Beach           

 

                      

              

P Winston Heverly - Real Estate Agent

Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

This is a nice overview of an REO property and what is necessary to purchase an REO home.  Since many of these home require a bank addendum which is full of legalese which benefits the entity which forelcosed, I might suggest an attorney review of the addendum to make sure the buyer knows the pros and cons of REO properties.

Mar 15, 2013 01:38 PM