Making an offer on REO property or a foreclosure in Clarksville?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. Should you have any questions about real estate in Clarksville, Tennessee, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are homes which have been through foreclosure and are presently held by the bank or mortgage company. This is unlike real estate up for foreclosure auction. Better Homes and Gardens Hometown Connection has experience to share with foreclosures and bank owned properties in Clarksville, Tennessee

Better Homes and Gardens Hometown Connection has experience to share with foreclosures and bank owned properties in Clarksville, Tennessee

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. You must also be ready to pay with cash in hand. To top everything off, you'll get the property entirely as is. That possibly may consist of prevailing liens and even current occupants that need to be expelled.

A bank-owned property, conversely, is a more tidy and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The lender will attend to the removal 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 standard disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to reveal any defects they are aware of. By hiring Better Homes and Gardens Hometown Connection, you can rest assured knowing all parties are fulfilling Tennessee state disclosure requirements.

Is REO property in Clarksville a bargain?

It is frequently believed that any REO must be a steal and a chance for guaranteed profit. This isn't necessarily the case. You have to be cautious about buying a repossession if your intent is to make money off of it. Even though the bank is typically eager to sell it soon, they are also motivated to minimize any losses.

Better Homes and Gardens Hometown Connection has experience to share with foreclosures and bank owned properties in Clarksville, Tennessee

When considering what to pay for 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 foreclosures. But there are also many REOs that are not good buys and not likely to turn a profit.

Prepared to make an offer?

Most mortgage companies have a department dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will usually hire a listing agent.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about what they know regarding the condition of the property and what their process is for taking offers. Since banks most commonly sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for hidden damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any real estate offer.)

After you've submitted your offer, it's customary for the bank to make a counter offer. At this point it will be your decision whether to accept their counter, or submit another counter offer. Your deal might be final in a single day, but that's rare. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Better Homes and Gardens Hometown Connection is accustomed to these situations and will work to ensure there are no unnecessary delays.