Lender Owned or REO properties
It is important to work with qualified real estate agents like Gary and Justin Miles when considering lender-owned or REO properties for many reasons. An REO (Real Estate Owned) is a property that goes back to the bank after an unsuccessful foreclosure auction. If you are new to the process, you may not know that most foreclosure auctions do not result in bids. In almost every instance the bank is owed more than the property is worth. The bank often bids the full amount of the loan and as a result there are no other bidders. If the bank bids less than the amount owed and looks to the homeowner to repay the difference the property will likely draw interest from other bidders.
Gary and Justin Miles regularly participate in foreclosure auctions and are exceedingly familiar with the process. Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property “reverts” to the bank. It becomes an REO, or “real estate owned” property. At this point the bank owns the property and the mortgage no longer exists.
If you decide to engage with Gary and Justin to pursue a lender owned property, they will help you achieve your goals and objectives in numerous ways, including:
- Create a purchase offer strategy designed to make your offer “easy to accept.”
- Prepare and present the purchase offer
- Manage the “counter offer” process
- Advise you as to which investigations and inspections are recommended or required.
- Contact the listing agent for any inspection reports.
- Contact the listing agent to determine what work the bank has or may agree to.
- Contact the listing agent to determine if there is a special “as is” form.
- Ensure the lender has negotiated removal of IRS tax liens
- Ensure the homeowner’s association dues have been paid off.
- Ensure you receive a title insurance policy and the opportunity to investigate the property.
- Work with the bank to handle evictions, when necessary.
- Negotiate for bank-funded repairs prior to closing.
Gary Miles & Justin Miles with RE/MAX of Cherry Creek
Denver Metro Real Estate Agents