Frequently Asked Questions
Buying a foreclosed property is not for the uninformed. Here are some common questions we get.
Q: What's a REO?
A: It's an acronym for Real Estate Owned. Financial industry jargon
for bank owned homes they need to sell. The list at the link to the
left is all REOs.
Q: Can I just pay what's owed on the
mortgage?
A: No. These homes have been auctioned on the courthouse steps, and
found no takers for what was owed. Now they are being sold at market
value to mitigate the bank's loss as much as possible.
Q: Will the bank be open to negotiating?
A: Yes, to a point. There are many factors at play here, but most
banks know they need to be realistic. If the buyer is realistic too,
we can usually broker a deal good for everyone.
Q: Are these Short Sales?
A: No. A Short Sale is where the property has not yet been
foreclosed, and you can try to negotiate a sale with the bank for
less than they are owed. The Short Sale process can be good for both
banks and buyers, but is very difficult to predict, and is often
unsuccessful after a long process. REOs are different. They are
clear in title and ready to buy now.
Q: Can I get financing for bank-owned
property?
A: Yes, absolutely. There are many good options and some terrific
programs available. See us for some options.
Q: What will the bank know about the
property?
A: Not much. They have some pictures and a couple of estimates of
value, but that's about it. Because they know little, their duty to
disclose known defects is reduced. That's why it's important to have
a professional agent on your side when considering these properties.
Q: How will I pay you for your services?
A: You won't! The banks pay for our services in the form of a shared
commission with the listing agent. Having a skilled expert agent on
your side costs you the buyer nothing.