Interested in REO property or a foreclosure in Williamsburg?


	Savvy consumers will turn to a seasoned pro when considering a foreclosed property.

What's an REO?

"REO" is short for Real Estate Owned. These are homes which have been through foreclosure that the bank or mortgage company presently holds. This is not the same as a property up for foreclosure auction. RE/MAX Peninsula at New Town has experience to share with foreclosures and bank owned properties in Williamsburg, Virginia

RE/MAX Peninsula at New Town has experience to share with foreclosures and bank owned properties in Williamsburg, Virginia

If you buy 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. You must also be willing to pay with cash in hand. To top everything off, you'll get the property 100% as is. That possibly will comprise of existing liens and even current occupants that need to be put out.

A bank-owned property, on the contrary, is a more tidy and attractive transaction. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The bank will deal with the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from typical disclosure requirements. For example, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that usually requires sellers to make known any defects they are aware of. By hiring RE/MAX Peninsula at New Town, you can rest assured knowing all parties are fulfilling Virginia state disclosure requirements.

Are REO properties a bargain in James City County?

It's frequently thought that any foreclosure must be a bargain and an opportunity for easy money. This often isn't true. You have to be cautious about buying a REO if your intent is make a profit. While it's true that the bank is usually eager to sell it promptly, they are also motivated to get as much as they can for it.

RE/MAX Peninsula at New Town has experience to share with foreclosures and bank owned properties in Williamsburg, Virginia

When contemplating the value of REO property, 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. The bargains with money making potential exist, and many people do very well buying and selling foreclosures. Still there are also many REOs that are not good buys and may lose money.

Time to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will frequently use 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 regarding the condition of the property and what their process is for getting offers. Since banks almost always sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unseen damage and terminate the offer if you find it. As with making any offer on real estate, providing documentation proving your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.

Once you've presented your offer, it's customary for the bank to respond with a counter offer. From there it will be up to you to decide whether to accept their counter, or make another counter offer. Your deal could be final in a single day, but that's usually not the case. 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. RE/MAX Peninsula at New Town is accustomed to these situations and will work to ensure there are no undue delays.