When a Lender is forced to foreclosure on a property and it acquires title to that property through the foreclosure process the property is then commonly referred to as an "REO". "REO" is an acronym for "Real Estate Owned". In dealing with an REO property the process is essentially the same as dealing with an individual, non-institutional Seller. Often, but not necessarily always, the Listing price on an REO property can represent a bargain for a Buyer. As your exclusive agent it will be my responsibility to do the research necessary to determine if an REO Listing price is (i) at market, (ii) above market, or (ii) represents a bargain price.
The primary difference between an REO sale and a sale of property owned by an individual is in the disclosure and due diligence process. An REO Seller, not having lived or owned the property prior to the completion of the foreclosure, will not make any disclosures. In addition the REO Seller as a rule will not agree to make any repairs to the house, the so-called "As Is" sale. I will however protect you in this situation. The Home Inspection will reveal what, if any, repairs are necessary. If you are not comfortable with your making the repairs you will have an unconditional right to withdraw your Offer and receive the return of your Earnest money.
Be assured that as your exclusive buyer agent I have the experience and knowledge to deal with an REO property. You can also be comfortable in knowing that whether we are involved in a foreclosure/REO sale you will receive a full and complete title to the property free and clear of any and all liens recorded by reason of the Seller's financing.
TJ Harris, Buyers 1at Realty, 480-836-4338 www.azbuyers1strealty.com
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